Dealmakers Still Optimistic About Future M&A, Survey Shows
This quarter’s sentiment survey of 700 M&A professionals revealed that dealmakers' overall sentiment about the future of the M&A market remains positive.
21 October 2014
We recently released the latest Intralinks® Deal Flow Predictor (DFP), a unique leading indicator of global M&A activity. The Q1 2015 data points to sustained momentum in M&A activity. The Intralinks DFP is up eight percent year-over-year, with particularly strong performances in North America and Asia Pacific. Based on the results of the Intralinks DFP, Intralinks predicts that global announced deal volumes for all of 2014 will rise between seven and 11 percent, compared to 2013 — the first annual increase since 2010.
To better understand the industry's perception about the future of the M&A market, we conducted our quarterly Global Sentiment Survey in September 2014. This quarter’s sentiment survey of 700 global M&A professionals revealed that dealmakers' overall sentiment about the M&A market remains positive, although optimism is lower than in the previous quarter. Additionally, dealmakers expect energy and power, and technology, to be the two most active sectors over the next six months. Here are a few more survey highlights:
- Sixty percent of dealmakers are still optimistic about the deal environment in the next six months, compared to 66 percent for the previous quarter
- Sixty-nine percent expect deal volumes to increase over the next six months, compared to 77 percent for the previous quarter
- Fifty-four percent say that recent technology deals and technology valuations are signs of a tech bubble
- Sixty-two percent believe that tax inversions (where companies buy foreign firms to lower overall corporate tax rates) are partially driving M&A activity
- Sixty percent believe that international government action to retain tax revenues will make cross-border M&A transactions more difficult to close
Together, the Global Sentiment Survey and the Intralinks DFP provide unique insights into global M&A deal volumes and market trends through Q1 2015. It’ll be interesting to see how the next six months progresses.
Meagan Parrish is the Senior Manager of Social Media at Intralinks. She is responsible for social media strategy development and the communications for Intralinks' online communities. Meagan has been creating social media strategies for a variety of companies across verticals for the past several years. She holds Bachelor degrees in Marketing and Finance, with a minor in English Literature.