The “How Deals Get Done” global survey sheds light on the growing use of social networks and online deal sourcing communities as a way to improve the close rates and volume of deals, while making it easier for more organizations to promote and compete in these transactions.
Conducted in September 2013, the Intralinks Dealnexus survey confirms that traditional deal marketing processes are evolving, incorporating social media and community-based deal networks to accelerate M&A velocity. Survey highlights include:
- More than 55 percent of dealmakers currently use an online deal network to support deal sourcing
- Among users of deal sourcing platforms, more than 50 percent of buy-side and over 40 percent of sell-side professionals have closed a deal that was sourced on an online network
- Almost 70 percent of dealmakers report that online communities of M&A professionals are making deal sourcing more efficient
- Almost 40 percent of respondents want to see more innovation in deal marketing
- LinkedIn® and Twitter® ranked as the top two applications currently used and predicted to be used in current future M&A activities
- 75 percent of dealmakers predict an increase in deal volume over the next 12 months
- Almost 78 percent of dealmakers find client pitching, marketing preparations and building buyer lists as the most tedious aspects of the present-day deal process
The study shows that dealmakers are eager to explore the use of social media and online deal sourcing as part of their day-to-day M&A activities as they seek to maximize the reach of their marketing efforts. This is especially the case since online deal sourcing networks continue to gain ground as social media businesses continue to soar. According to the study, among the survey respondents who identified themselves as current users of deal sourcing networks, almost half of the buy-side professionals who responded say they find more than 25 percent of their deals from sourcing networks, while 39 percent of sell-side professionals have marketed more than five deals on these networks within the last year.
“Across the industry, private equity firms close, on average, only one out of every 80 potential deals using traditional methods,” noted Patrick O’Keefe, principal at the private equity firm Excellere and an Intralinks Dealnexus member. “Social deal sourcing can greatly improve on this close rate. Leveraging the connections made through the Intralinks Dealnexus online community helped our firm close a deal within 45 days of signing the letter of intent. This type of deal normally takes about twice as long to close.”
As a company who looks at deal volume and future M&A activity, it’s important to have a clear understanding of how newer technology influences the deal sourcing and marketing process and how prevalent online deal networks have become,” explained Matt Porzio, vice president of strategy and product marketing at Intralinks. “As the largest dealmaker community in the M&A industry, Intralinks Dealnexus is uniquely qualified to tap into a global user base of professionals and solicit their views on the utility and adoption rates of online deal networks. Our research proves that the prevalence of community-based social dealmaking within the M&A industry is only rising.”
Intralinks will share the results of the Intralinks Dealnexus survey, along with an interactive discussion of current industry challenges and how deal sourcing networks are transforming M&A, in its live webcast, “The Future of Online Deal Sourcing,”on Wednesday, January 15, 2014 at noon Eastern. Register for the webcast, or download a copy of “How Deals Get Done.”
About Intralinks Dealnexus
The largest global deal marketplace and professional network for qualified M&A professionals, Intralinks Dealnexus offers a secure and confidential way for dealmakers to find and engage the best buyers or capital partners, and is used by more than 5,000 private equity firms, corporations, investment banks and advisors who are looking to connect and exchange deal opportunities intelligently and efficiently. With the launch of Intralinks Dealnexus, the company’s first community offering in the social enterprise market, Intralinks now offers a unique end-to-end solution for managing the full lifecycle of strategic transactions, from deal preparation, marketing and sourcing through to due diligence and execution. Membership to Intralinks Dealnexus is free to qualified M&A professionals. Visit http://www.intralinks.com/products/intralinks-dealnexus.
Intralinks Holdings, Inc. (NYSE: IL) is a leading, global technology provider of inter-enterprise content management and collaboration solutions. Through innovative Software-as-a-Service solutions, Intralinks solutions are designed to enable the exchange, control and management of information between organizations securely and compliantly when working through the firewall. More than 2.7 million professionals, including professionals at 99% of the Fortune 1000 companies, depend on Intralinks' experience. With a track record of enabling high-stakes transactions and business collaborations valued at more than $23.5 trillion, Intralinks is a trusted provider of easy-to-use, enterprise strength, cloud-based collaboration solutions. For more information, visit www.Intralinks.com.
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“Intralinks” and Intralinks’ stylized logo are the registered trademarks of Intralinks, Inc. “Intralinks Dealnexus” is a trademark of Intralinks, Inc. This press release may also refer to trade names and trademarks of other organizations without reference to their status as registered trademarks. © 2013 Intralinks, Inc. All rights reserved.