Get the Right Deal at the Right Time: Intralinks Dealnexus® for Emerging Markets
Intralinks Dealnexus, global online deal sourcing and deal marketing platform, saw explosive growth in the emerging and frontier markets this past year.
22 April 2016
The Intralinks Dealnexus® Knowledge Series is a monthly series of topical articles authored by members of the Intralinks Dealnexus team, created to help you make the most of the expansive platform and deal ecosystem.
"[In emerging markets] if you don't have to share [the market] with offline [distribution channels], your percentage will be much higher. It will all move online," said Oliver Samwer, Founder & CEO Rocket Internet, discussing the opportunity for e-commerce in emerging and frontier markets.
In May of 2015, I was at the Global Private Equity Conference organized by the International Finance Corporation (“IFC”) and the Emerging Market Private Equity Association (EMPEA). There I was meeting Private Equity (PE) investors in emerging markets and listening to Mr. Samwer outline how emerging economies can breed supercharged growth in e-commerce. The smartest investors in emerging and frontier markets were taking notes — and so was I.
The Rocket Internet thesis is simple: In markets where traditional retail and distribution channels are underdeveloped, they are less entrenched, and the markets are more open to adopting e-commerce solutions as industry standards. As I listened to Mr. Samwer, I realized that his thesis for e-commerce holds no less true in the increasingly globalized market for M&A. Many emerging and frontier economies have begun to plug themselves into the global flow of capital only in the last 25 years. As a result, intermediaries in these markets are much quicker to adopt technologies that offer a time-efficient solution for acquiring a global network of deal counterparties by plugging gaps in geography and language in a secure manner.
As a truly global online deal sourcing and deal marketing platform, Intralinks has been a primary beneficiary of this trend; we have built a global portal for investment banks, private equity investors, debt providers and strategic acquirers to connect on deals. We have always had good traction in emerging markets and, in 2015, we set out to supercharge our presence in global emerging markets and take advantage of the same dynamics that drive Rocket Internet in e-commerce.
The start of 2016 is a good time to take stock of the success of these efforts and the explosive growth that Intralinks Dealnexus saw in emerging and frontier markets. In 2015, Intralinks Dealnexus saw:
- Over 1,080 deals created and marketed from emerging and frontier market economies around the world*
- An average emerging market deal revenue of over US $38.7 million*
- An average emerging market deal EBITDA of nearly US $5.8 million*
For Intralinks Dealnexus clients, this growth and global presence benefits all of our members. Today, using Intralinks Dealnexus, a California-based, U.S.-focused PE firm can evaluate an opportunity to offshore a portfolio company’s shoe manufacturing operations to Romania via acquisition with as much speed and accuracy as an investment banker in Chile who wants to put his IT services deal in front of a Japanese IT company looking for regional presence. New strategic options are opened up to acquirers on Intralinks Dealnexus system while sell-side advisors are given a new avenue for reaching beyond their traditional, local contacts in order to find the highest bidders for their deals.
As 2016 dawns, we are committed to our emerging market presence through Intralinks offices across Latin America, Asia, Eastern Europe and Dubai. We look forward to helping capital markets participants the world over connect on deals and execute them.
*Based on statistics from the Intralinks Dealnexus platform.
Tony Hill is the Director of Intralinks Dealnexus. Prior to its acquisition by Intralinks in early 2013 along with MergerID, Tony was the CEO and co-founder of PE-Nexus, the leading private market network for mergers & acquisitions professionals. The two platforms have been combined to form the largest global deal marketplace and professional network for qualified M&A professionals.