Q2 2019 Intralinks Deal Flow Predictor: Sluggish Outlook for European M&A
Southern Europe and Middle East offset Brexit concerns
11 February 2019
The Q2 2019 issue of the Intralinks Deal Flow Predictor report forecasts no growth in EMEA M&A announcements in H1 2019: the number of announced M&A deals is expected to fall slightly by 1 percent year-over-year (YOY), within a range of 8 percent to 8 percent.
Dealmakers wanting to know the future of EMEA 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 edition 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.
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.
Laurent Sultan
Laurent Sultan is vice president of sales for Europe, the Middle East & Africa at Intralinks