Q2 2019 Intralinks Deal Flow Predictor: Latin American M&A Forecast to Struggle

Materials sector and Mexico sole bright spots

11 February 2019

Intralinks Deal Flow Predictor

The Q2 2019 edition of the Intralinks Deal Flow Predictor forecasts a 6 percent year-over-year (YOY) decline in the number of announced LATAM M&A deals in H1 2019, within a range of 12 percent to 2 percent. That puts LATAM at the back of the class for worldwide M&A growth in the first six months of 2019.

Dealmakers wanting to know the future of LATAM M&A six months ahead of everybody else can read the report to find out which countries and sectors are nevertheless expected to lead, and lag, any growth in M&A announcements in H1 2019.

Worldwide, the big picture is about slowing growth. On the heels of a decline in worldwide M&A announcements in H2 2018 and a slowdown in early-stage M&A activity in Q4 2018, our forecast for H1 2019 is for a 2 percent year-over-year (YOY) increase in the number of worldwide announced M&A deals.

Going forward, dealmakers face considerable headwinds in 2019 including: a slowing global economy, partly driven by the trade war between the U.S. and China; rising interest rates; depressed global equity markets (which fell 10 percent in 2018); sky-high M&A valuation levels; and increasing nationalism and protectionism against cross-border M&A.

One support to M&A activity could come from the wall of private equity dry powder, estimated at $1 trillion+, from recent record fundraisings. The flip side: increased competition for strategic acquirers from deal-hungry financial sponsors.

Find out more in the Q2 2019 issue of the Intralinks Deal Flow Predictor. Independently verified as a highly accurate six-month forecast of mergers and acquisitions activity, the Intralinks Deal Flow Predictor is compiled by tracking worldwide early-stage M&A transactions that are in preparation or have begun due diligence.

Download your copy here.

Along with our independently verified forecasts of M&A activity in H1 2019 by region and sector, this issue of the Intralinks Deal Flow Predictor includes a spotlight feature on Britain’s departure from the E.U. and its potential impact on M&A activity, including the results of our recent Brexit poll of global dealmakers.

Enrique Barrios

Enrique Barrios

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.