Q1 2019 Intralinks Deal Flow Predictor: LATAM’s M&A Drought Expected to Continue
Argentina — and real estate — lonely stars of LATAM M&A growth through Q1 2019
13 November 2018
Following a decline of 9 percent year-over-year (YOY) in the number of announced mergers and acquisitions deals in Latin America during the first nine months of 2018, the region is set for further disappointment. According to the just-published Q1 2019 issue of the Intralinks Deal Flow Predictor report, M&A deal announcements in LATAM are forecast to fall by a further 5 percent YOY over the six months ending Q1 2019, led by the Financials, Healthcare and Technology, Media and TMT (Technology, Media & Telecoms) sectors.
Among the largest LATAM economies, Argentina is expected to be the only one to show any increase in M&A announcements over the six months ending Q1 2019, whereas levels of M&A announcements are expected to be flat to declining in Brazil, Chile, Colombia, Mexico and Peru. The other bright spot could be the Real Estate sector, where a double-digit increase in the volume of early-stage M&A activity in Q3 2018 signals expectations for increased M&A announcements in Q1 2019.
Worldwide, Intralinks expects the number of M&A deal announcements to rise by 6 percent YOY during the six months ending Q1 2019. However, structural imbalances and signs of market stress suggest the current M&A up-cycle may be nearing its peak. Rising U.S. interest rates, volatile global equity markets, reversals of capital flows to emerging market economies, overstretched valuation levels and increasing protectionism against M&A and global trade may combine to overcome dealmaking confidence in 2019.
Find out more in the Q1 2019 issue of the Intralinks Deal Flow Predictor.
Independently verified as a highly accurate six-month forecast of M&A activity, the Intralinks Deal Flow Predictor report is compiled by tracking early-stage M&A transactions worldwide that are in preparation or have begun due diligence.
Along with our forecast of M&A activity for the six months ending Q1 2019, the latest issue of Intralinks Deal Flow Predictor includes:
- A spotlight feature on the potential of blockchains to disrupt the dealmaking process – hope or hype?
- An interview with Frank A. McGrew IV, managing partner at McNally Capital, on doing deals with family-owned businesses.
- Regional data on how long M&A deals are taking to complete due diligence and their volume of due diligence information.
Enrique Barrios has over 20 years of experience in architecting and delivering business and technology solutions to large companies in the US and Latin America, starting his career at Andersen Consulting (Accenture), as part of the Southeast Region of the US, and taking on roles such as Head of Sales for Novell Latin America (HLA). Enrique received a degree in Industrial Engineering and an MBA from Oregon State University, and is fluent in English, Spanish and Portuguese.