Q4 2019 SS&C Intralinks Deal Flow Predictor: Out of the Doldrums?
H2 2019 shows potential for return to worldwide M&A growth
14 August 2019
After five disappointing quarters for mergers and acquisitions announcements (M&A), prospects look brighter for most of the world in H2 2019.
That’s the headline from the Q4 2019 issue of the SS&C Intralinks Deal Flow Predictor. What should we expect for the remainder of 2019? Worldwide, the number of new M&A deal announcements is predicted to increase by around 5 percent year-over-year (YOY) in the second half of this year, the first signs of growth since Q1 2018.
However, when you look at this year overall, it gets a bit complicated.
Click to watch Matt Wells, senior director of strategy and product marketing, preview the Q4 SS&C Intralinks Deal Flow Predictor, in 60 seconds.
H1 2019 overshadows the full year
While the modest growth predicted for H2 2019 may cheer dealmakers, the hangover from the 7 percent fall in worldwide announced deal count in the first half of this year means that the number of announced deals in 2019 overall is set to be around 1 percent lower than 2018 – marking the second consecutive year of declining deal announcements.
The sectors leading the upturn
Based on volumes of early-stage due diligence M&A activity in worldwide virtual data rooms over the past six months, we expect the strongest growth in worldwide deal announcements in H2 2019 to come from the Energy & Power, Industrials and Materials sectors.
Synchronized global growth in H2 2019, excluding Latin America
The number of announced M&A deals is forecast to grow by around 5 percent YOY in three out of the four global regions in the second half of 2019: Asia-Pacific, North America and Europe, the Middle East and Africa. Dealmakers in Latin America face a much more sluggish environment, with the number of announced deals predicted to fall by around 4 percent.
An uncertain environment
Dealmakers 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”