Intralinks Deal Flow Indicator Shows M&A Activity Turning the Corner Globally Year-over-Year

In my mind, Vettel’s performance is parallel to recent M&A activity in the Asia Pacific Region (APAC), which has outpaced more mature markets and has shown stronger sequential M&A growth than many regions globally, with a 44 percent increase from Q2 2011 to Q3 2011. The significant traction in deal activity that we observed this quarter in APAC is consistent with an overall flight to long-term growth prospects visible in the market.


9 December 2011

Without a doubt, German Formula 1™ driver Sebastian Vettel ended this year’s Formula 1 racing season on a high note, winning his second title. Vettel went into his last race of the year with increased confidence, leaving many of the more experienced veteran drivers in his rear view mirror.

In my mind, Vettel’s performance is parallel to recent M&A activity in the Asia Pacific Region (APAC), which has outpaced more mature markets and has shown stronger sequential M&A growth than many regions globally, with a 44 percent increase from Q2 2011 to Q3 2011. The significant traction in deal activity that we observed this quarter in APAC is consistent with an overall flight to long-term growth prospects visible in the market.

The results of the most recent Intralinks’ Deal Flow Indicator (DFI), show that M&A deal activity quarter-to-quarter was experiencing a bit of drag, with flat or negative growth regionally. The European debt crisis is no doubt having an effect on the markets globally as strategic buyers and financial buyers try and guess at what demand will look like down the road. Based on the Intralinks DFI for the most recent quarter, the U.S. has hit a bit of a gravel trap with the largest regional decrease down 7.5 percent from last quarter. This is the result of uncertainty over future demand in Europe, calling into question valuations of acquisition targets and leading companies to adopt the “wait and see” approach.

Meanwhile, in EMEA, the M&A activity reported by the DFI year-over-year was flat. While the typical divestitures and acquisitions are declining, it appears the deal market is being offset by acceleration in the rate of bankruptcies and a flood of sovereign divestitures to the market, offering investors the opportunity to buy assets at fire sale prices.

Overall, the markets have gained velocity, with a 19 percent increase in global M&A deal activity for Q3 2011 compared to Q3 2010. With the M&A environment being driven by emerging markets where strategic, and more importantly, financially conservative buyers are increasingly active, global year-over-year growth from Q3 2010 to Q3 2011 showed positive trends across the board: Latin America (43 percent), EMEA (39 percent), APAC (34 percent) and North America (3 percent).

All of this shows that emerging markets are still racing ahead as buyers look for greater long term returns in markets that are still showing growth. Time will tell who ends up in the winner’s circle.

The results of the Deal Flow Indicator are based on observations and subjective interpretations of M&A deal activity and is not intended to be an indicator of Intralinks’ business performance or operating results for any prior or future period.



Matthew Porzio

Matthew Porzio

Matt Porzio joined Intralinks in 2003. As SVP Marketing & Strategic Business Development, he is responsible for managing and driving the strategic direction for Intralinks Dealspace including virtual data room and full deal lifecycle solutions for the M&A, Private Equity, Advisory, Corporate Development and Restructuring communities. Before joining Intralinks, he was a senior associate at Metzler, a German advisory firm, focused on cross-border M&A transactions.