SYDNEY, AUSTRALIA--(Marketwired - Nov 30, 2017) -
- APAC M&A deals predicted to be up 14 percent
- Growth driven by Southeast Asia, India & North Asia and from the Real Estate, Materials and Consumer & Retail sectors
- Strengthening global economic demand and supportive fiscal and monetary policy actions are behind dealmaking confidence
The Intralinks Deal Flow Predictor, a predictor of future mergers and acquisitions (M&A) announcements with a proven track record for accuracy, forecasts that the year-over-year (YOY) growth in the number of announced M&A deals in Asia Pacific (APAC) in Q1 2018 is predicted to be up around 14 percent. This growth is expected to be driven by the Real Estate, Materials and Consumer & Retail sectors, according to the report.
All markets in the region are showing increasing volumes of early-stage M&A activity, with the strongest contributions to APAC's growth over the next six months coming from Southeast Asia, India and North Asia (China, Hong Kong and South Korea). Japan recorded its first quarter of increasing early-stage M&A activity since Q4 2016, with the number of early-stage deals rising by 6 percent YOY. Despite the political instability on the Korean peninsula and in Myanmar, for most of the APAC region, strengthening global economic demand and supportive fiscal and monetary policy actions are driving vigorous economic growth and increasing dealmaking confidence.
Worldwide, the number of announced M&A deals in Q1 2018 is expected to increase by around 2 percent compared to Q1 2017. The dealmaking environment is being supported by a combination of a gradual pickup in global economic growth, subdued inflation in advanced and emerging economies, buoyant asset markets and historically low interest rates.
There are risks, however. "The risks to the scenario of steadily increasing M&A activity are twofold: political and financial," said Philip Whitchelo, VP of Strategy & Product Marketing at Intralinks. "Increases in economic nationalism, protectionism and restrictions on global trade and cross-border economic integration all have the potential to negatively affect dealmaking sentiment. With global equity markets at record highs, and almost nine years since the last major trough, a correction that turns into a more serious sell-off could also prove negative for dealmaking confidence," he added.
The Intralinks Deal Flow Predictor's other regional forecasts for the number of announced M&A deals in Q1 2018 are: Europe, the Middle East and Africa (EMEA), predicted to be up around 6 percent; Latin America (LATAM), predicted to be up around 3 percent; and North America (NA), predicted to be down around 11 percent, due mainly to an exceptionally strong Q1 2017 comparison period.
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 begun their 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 worldwide number of announced M&A transactions, as reported by Thomson Reuters.
To find out more, download the 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. 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 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 nor of the revenue or M&A deal volume that Intralinks may generate for any financial period. 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.
THE INTRALINKS DEAL FLOW PREDICTOR MAY BE USED SOLELY FOR PERSONAL, NON-COMMERCIAL USE. THE CONTENTS OF THE INTRALINKS DEAL FLOW PREDICTOR MAY NOT BE REPRODUCED, DISTRIBUTED OR PUBLISHED WITHOUT THE EXPRESS WRITTEN PERMISSION OF INTRALINKS. FOR PERMISSION TO REPUBLISH INTRALINKS DEAL FLOW PREDICTOR CONTENT, PLEASE CONTACT info@intralinks.com.
About Intralinks
Intralinks supports high-stakes financial transactions, partnership negotiations and strategic initiatives across the globe. With over $34 trillion worth of financial transactions executed on its platform, Intralinks supports the entire deal lifecycle by streamlining operations, reducing risk, improving client experience, increasing visibility and better engaging deal participants. In its 20-year history Intralinks has earned the trust and business of more than 99 percent of the Global Fortune 1000. For more information, visit www.intralinks.com.
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