Sharp regional division in M&A prospects: EMEA and LATAM grow while APAC shows flat growth and NA declines
The Intralinks Deal Flow Predictor, an indicator of future mergers and acquisitions (M&A) announcements, with a proven track record for accuracy, forecasts a less than one percent increase in the total number of M&A deals to be announced globally in FY 2016 compared to FY 2015. In addition, year-over-year (YoY) growth in early-stage M&A activity in Q2 2016, which is an indicator of M&A announcements in Q4 2016, shows significant regional variations. In Europe, the Middle East and Africa (EMEA) and Latin America (LATAM), early-stage M&A activity grew by nearly 16 percent and 11 percent, respectively. In North America (NA), early-stage M&A activity declined by 11 percent. In Asia-Pacific (APAC), early-stage M&A activity declined very slightly by 0.4 percent.
“The slowdown in early-stage M&A activity that we have seen in the first half of 2016 has been driven primarily by lower levels of activity in NA, where a slowdown in economic growth, the prospect of further US Federal interest rate rises in 2016 and uncertainty over the outcome of the US Presidential election in November are combining to cause dealmakers to pause for breath. EMEA is showing stronger levels of growth, and even LATAM has staged a recovery despite a continued slump in Brazil,” said Matt Porzio, Vice President of M&A Strategy and Product Marketing at Intralinks.
The Intralinks Deal Flow Predictor forecasts the volume 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.
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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 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.
THIS PRESS RELEASE AND THE INTRALINKS DEAL FLOW PREDICTOR (COLLECTIVELY THE "MATERIALS") ARE PROVIDED "AS IS" FOR INFORMATIONAL PURPOSES ONLY. INTRALINKS MAKES NO GUARANTEE, REPRESENTATION OR WARRANTY OF ANY KIND REGARDING THE TIMELINESS, ACCURACY OR COMPLETENESS OF THE CONTENT OF THE MATERIALS. THESE MATERIALS ARE BASED ON INTRALINKS' OBSERVATIONS AND SUBJECTIVE INTERPRETATIONS OF DUE DILIGENCE ACTIVITY TAKING PLACE, OR PROPOSED TO TAKE PLACE, ON INTRALINKS' OR OTHER PROVIDERS' VDR PLATFORMS FOR A LIMITED SET OF TRANSACTION TYPES. THESE MATERIALS ARE NOT INTENDED TO BE AN INDICATOR OF INTRALINKS' BUSINESS PERFORMANCE OR OPERATING RESULTS FOR ANY PRIOR, CURRENT OR FUTURE PERIOD, NOR ARE THESE MATERIALS INTENDED TO PROMISE, GUARANTEE OR ASSURE FUTURE LEVELS OF COMPLETED DEAL ACTIVITY. THESE MATERIALS ARE NOT INTENDED TO CONVEY INVESTMENT ADVICE OR SOLICIT INVESTMENTS OF ANY KIND WHATSOEVER.
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