Intralinks Predicts Continued Growth in Global M&A Activity Through Early 2015
Today Intralinks released the latest Intralinks® Deal Flow Predictor (DFP), which provides insights into deal volumes and market trends through Q1 2015.
20 October 2014
It's a matter of record that 2014 has been a great year for M&A. But what's the forecast for dealmaking in 2015?
Today Intralinks released the latest Intralinks® Deal Flow Predictor (DFP), a unique leading indicator of future global deal activity. The Intralinks DFP which tracks global M&A sell-side mandates and deals reaching the due diligence phase prior to public announcement, forecasts changes in the volume of global M&A deals that are expected to be announced in the next six months.
Forecast: Deal Volume and Market Trends Through Q1 2015
The most recent Intralinks DFP report provides unique insights into deal volumes and market trends through Q1 2015. It suggests that that we will see a five percent quarter-on-quarter (QoQ) decrease and an eight percent year-on-year (YoY) increase in early-stage global M&A activity in Q1 2015, with particularly strong performances in North America and Asia Pacific.
The sustained M&A momentum we saw in 2014, will carry into 2015. Additionally, Intralinks predicts that global announced deal volumes for the full year of 2014 will rise between seven and 11 percent compared to 2013. This increase would represent the first annual increase in the number of announced M&A deals since 2010.
Highlights from the latest report include:
North America – The level of North American early-stage M&A activity grew 19 percent over the last four quarters, increased 14 percent YoY, and decreased six percent QoQ, reinforced by strength in the economy, low interest rates, and increased pressure on corporate buyers to generate growth.
Europe, Middle East and Africa (EMEA) – Europe continues to perform strongly and consistently. Early-stage M&A activity grew 16 percent over the last four quarters, increased eight percent YoY, and decreased nine percent QoQ. Germany continues to be a major driver of M&A activity in the region.
Latin America – Latin America is still showing weakness. Early-stage M&A activity in Latin America shows a decline of 10 percent over the last four quarters, 22 percent YoY, and 11 percent QoQ. Brazil, the region’s largest economy, is stagnating as weakening demand and investment have coincided with a decline in the commodity price cycle for key exports.
Asia Pacific (APAC) – Early-stage M&A activity levels in Asia Pacific are showing a consistent increase, up seven percent over the last four quarters, seven percent YoY, and 18 percent QoQ. The jump in QoQ activity was seen across almost the entire APAC region with the exceptions of Australia and Hong Kong.
Check out our infographic for the report highlights.