Q1 2017 M&A announcements expected to increase in three out of four global regions
New York, NY, November 17, 2016 — The Intralinks Deal Flow Predictor, an indicator of future mergers and acquisitions (M&A) announcements, with a proven track record for accuracy, forecasts a 3 percent increase in the total number of M&A deals to be announced globally in FY 2016 compared to FY 2015. This would make 2016 the new peak year for the number of global deal announcements, surpassing the previous peak year of 2007. The Intralinks Deal Flow Predictor is also forecasting a five percent increase in the total number of M&A deals to be announced globally in Q1 2017 compared to Q1 2016.
“Historically, M&A activity starts to slowdown in Q3 of a U.S. presidential election year, as dealmakers watch closely to see which candidate wins the election and what policies the incoming administration might put into effect. However, this year seems to be an exception, which is surprising given the controversial nature of this year’s presidential election campaign and the unexpected result,” said Matt Porzio, Vice President of M&A Strategy and Product Marketing at Intralinks.
Year-over-year (YoY) growth in early-stage M&A activity in Q3 2016, which is an indicator of M&A announcements in Q1 2017, grew by seven percent globally – the fastest rate of growth so far in 2016. The uptick in activity is being driven by increased numbers of early-stage transactions in three out of the four global regions: Europe, the Middle East and Africa (EMEA, up 13 percent), Asia Pacific (APAC, up 9 percent) and North America (NA, up 5 percent). In contrast, early-stage M&A activity in Latin America (LATAM) declined by 12 percent. Globally, the strongest sectors for early-stage M&A activity are Real Estate, Energy & Power and Technology, Media/Entertainment and Telecommunications (TMT), which all increased by double-digit percentages in Q3 2016.
Regional M&A predictions according to the Intralinks Deal Flow Predictor include:
- In APAC, M&A announcements in Q1 2017 will increase YoY, with the strongest levels of growth coming from India and South East Asia. The top three APAC sectors for YoY growth in Q1 2017 will be TMT, Industrials and Healthcare.
- In EMEA, M&A announcements in Q1 2017 will increase YoY, with the strongest levels of growth coming from Northern Europe (Nordics and Benelux) and Southern Europe (Italy, Spain and France). The top three EMEA sectors for YoY growth in Q1 2017 will be Real Estate, Energy & Power and TMT.
- In LATAM, M&A announcements in Q1 2017 will decrease YoY, with the strongest declines coming from Mexico and Brazil. Argentina and Chile will show increased levels of M&A announcements. The only LATAM sector that will show YoY growth in Q1 2017 will be Energy & Power. The LATAM sectors with the steepest YoY declines will be Healthcare, Consumer & Retail and TMT.
- In NA, M&A announcements in Q1 2017 will increase YoY, with Canada contributing stronger growth than the US. The top three NA sectors for YoY growth in Q1 2017 will be Real Estate, Energy & Power and Materials.
The Intralinks Deal Flow Predictor forecasts the number of future M&A deal announcements by tracking early-stage M&A activity – sell side M&A transactions across the world that are in preparation or have reached the due diligence stage. These early-stage deals are, on average, six months away from their public announcement. The Intralinks Deal Flow Predictor has been independently verified as an accurate predictor of future changes in the global number of announced M&A transactions, as reported by Thomson Reuters.
To find out more, download the complete Intralinks Deal Flow Predictor report here.
About the Intralinks Deal Flow Predictor
The Intralinks Deal Flow Predictor provides Intralinks' perspective on the level of M&A due diligence activity taking place during any given period of time. The statistics contained in the Intralinks Deal Flow Predictor represent the volume of virtual data rooms (VDRs) opened, or proposed to be opened, through Intralinks or other providers for the purpose of conducting due diligence on proposed transactions including asset sales, divestitures, equity private placements, financings, capital raises, joint ventures, alliances and partnerships. These statistics are not adjusted for changes in Intralinks' share of the VDR market or changes in market demand for VDR services. These statistics may not correlate to the volume of completed transactions that may be reported by market data providers and should not be construed to represent the volume of transactions that will ultimately be consummated during any period of time. Indications of future completed deal activity derived from the Intralinks Deal Flow Predictor are based on assumed rates of deals going from due diligence stage to completion. In addition, the statistics reported by market data providers may be compiled with a different set of transaction types than those set forth above.
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