Up, Up and M&A: Intralinks Deal Flow Indicator Q3 Results

For those of you that are new to the Intralinks Deal Flow Indicator, it's our inside view on the state of the global M&A market. As many deals are active on Intralinks' virtual datarooms before they are announced, we are able to see trends and activity levels in the market as they are happening.


7 October 2009

I'm a glass half full kind of chap. I like good news as those of you that have read my previous M&A musings already know that. So now I'm very pleased to present the results of our M&A Deal Flow Indicator for Q3 2009 as there's plenty to be positive about.

For those of you that are new to the Intralinks Deal Flow Indicator, it's our inside view on the state of the global M&A market. As many deals are active on Intralinks' virtual datarooms before they are announced, we are able to see trends and activity levels in the market as they are happening.

Deal Flow Indicator

The Q3 results of the Deal Flow Indicator show a 10% rise in global deal activity over the previous quarter. What's interesting is that this figure was driven by activity from across the globe, with EMEA and APAC both posting double-digit increases in Q3. This builds on the 10% rise in deal activity Intralinks observed in Q2 2009 compared to Q1 2009, making for a continuing positive momentum in the M&A markets. For more details read the full report here.

The current Deal Flow Indicator shows some interesting sector-specific trends emerging. For instance, in the technology and life sciences industries we are seeing double-digit increases. We've also witnessed modest increases in the energy, industrial and manufacturing sectors.

Clearly, the equity markets are increasing in strength and this is helping to narrow any valuations gaps that may have been preventing deals. In fact some bankers are advising that corporate executives need to act now, before valuations increase further and good value acquisition opportunities disappear. To add to this momentum are two other significant factors. First, distressed activity is still featuring prominently in global M&A, and second, there have been a recent slew of larger, non-distressed deals being announced across the globe.

Yet M&A volume levels are still relatively low and it is by no means certain that there will be a sustained recovery in the global economy. In fact, some economists and commentators are predicting a "W" shaped recovery including the chief executive of HSBC. However, there are good signs that M&A is on its way back, so let's just hope these harbingers are the minority that prefer to see the glass half empty.