Q4 2019 SS&C Intralinks Deal Flow Predictor: European Dealmaking Returns to Growth
Brighter prospects for EMEA M&A in H2 2019
14 August 2019
Following a disappointing first half of 2019 for mergers and acquisitions in Europe, the Middle East and Africa, when the number of announced M&A deals fell by 2 percent year-over-year (YOY), dealmakers in the region can look forward to a somewhat brighter future.
That’s one of the forecasts in the Q4 2019 issue of the SS&C Intralinks Deal Flow Predictor. The number of announced M&A deals in EMEA is predicted to rise by around 5 percent YOY in H2 2019, driven by higher levels of deal announcements in the Materials, Industrials and Energy & Power sectors.
Where’s the growth coming from?
Based on volumes of early-stage due diligence M&A activity in EMEA-wide virtual data rooms over the past six months, we expect Eastern Europe, Sub-Saharan Africa and Northern Europe to make the strongest contributions to EMEA’s growth in the second half of this year. Among the five largest European economies, Spain, the U.K. and Germany are expected to show increased levels of M&A announcements in H2 2019 compared with the same period in 2018, whereas levels of M&A announcements are expected to be lower in France and Italy.
An uncertain environment
Despite the predicted return to growth in H2 2019, the hangover from the decline in EMEA deal announcements in the first half of this year means that the number of announced M&A deals in EMEA in 2019 overall is set be only around 1 percent higher than in 2018.
Dealmakers in EMEA are having to deal with an unprecedented combination of forces as they navigate the remainder of 2019 and look ahead to 2020: a slowing global economy, disruption to trade and supply chains by the escalating U.S.-China tariff war, jittery financial markets and the prospect of turmoil in the U.K. and Europe as Britain potentially leaves the European Union at the end of October without a transition agreement.
Find out more in the Q4 2019 issue of the SS&C Intralinks Deal Flow Predictor. Independently verified as a highly accurate six-month forecast of mergers and acquisitions activity, the SS&C Intralinks Deal Flow Predictor is compiled by tracking early-stage M&A transactions globally that are in preparation or have begun due diligence.
Along with our forecasts of M&A activity by region and sector for the next six months, the latest issue of the SS&C Intralinks Deal Flow Predictor includes:
A spotlight feature on the conglomerate: Are we seeing its demise?
An interview with Paul Aversano, managing director in Alvarez & Marsal’s private equity services practice and the global practice leader of the firm’s Transaction Advisory Group, on what M&A dealmakers need to understand to navigate the current “vortex of volatility”