M&A Deal Announcements to Increase in 1H 2016, but Rising Global Economic and Financial Volatility Clouds Outlook
January 26 2016 - 8:30AM
Business Wire
Intralinks Deal Flow Predictor forecasts 3.5
percent growth in global deal announcements in 1H 2016 over 1H
2015
The Intralinks Deal Flow Predictor (DFP), an indicator of future
mergers and acquisitions (M&A) announcements with a proven
track record for accuracy, forecasts continued growth in the global
number of M&A deals to be announced in the first half of 2016.
Global M&A deal volumes are predicted to increase by 3.5
percent in 1H 2016 compared to 1H 2015, a lower rate of growth than
in 2015, as increased global economic and financial volatility, as
well as likely further U.S. interest rate rises in 2016, affect
dealmaking confidence. The sectors showing the highest increases in
global early-stage M&A activity are Consumer,
Telecommunications, Healthcare, Real Estate, Industrials, and
Energy & Power, while High Technology, Materials, Retail, and
Media & Entertainment are showing declines in early-stage deal
activity.
“2015 was a record-breaking year for M&A and our current
forecast is for a continued, albeit reduced, level of M&A
growth through the first half of 2016,” said Matt Porzio, Vice
President of M&A Strategy and Product Marketing at Intralinks.
“Despite global market fluctuations at the beginning of this year,
based on our insights into early-stage M&A activity, we are
predicting global growth due to a bounce back in Asia Pacific
(APAC), continued strong growth in Europe, the Middle East and
Africa (EMEA), a continued recovery in Latin America (LATAM) and a
reversal of last quarter’s decline in North America (NA).
The Intralinks DFP forecasts the volume of future M&A deal
announcements by tracking the number of early-stage M&A deals
that are in preparation or have reached the due diligence stage. On
average, these deals are six months away from their public
announcement. The Intralinks DFP has been independently verified as
an accurate predictor of the number of future M&A deal
announcements.
The Intralinks DFP’s findings are consistent with the responses
to Intralinks’ latest quarterly Global M&A Sentiment Survey,
which polled M&A dealmakers in December 2015 and involved
responses from a total of 680 M&A professionals. The survey’s
findings included the following:
- Globally, the percentage of dealmakers
who are optimistic about the current deal environment rose to 50
percent compared to 43 percent in the previous quarter’s
survey;
- 48 percent of respondents in NA are
optimistic about the current deal environment – making NA the
region with the lowest such percentage;
- 63 percent of respondents in EMEA are
optimistic about the current deal environment – making EMEA the
region with the highest such percentage;
- 49 percent of respondents in LATAM are
pessimistic about the current deal environment – the highest
percentage in that region since Q3 2013;
- 51 percent of respondents in APAC are
optimistic about the current deal environment, up from 46% in the
previous quarter’s survey;
- Respondents in all regions cited either
a global economic slowdown and/or geopolitical instability as
having the potential to significantly impact on M&A activity in
the first half of 2016; and
- Dealmakers in APAC are the most
concerned about a slowdown in Chinese economic growth having an
impact on M&A activity in their region over the next six
months, at 68 percent, with NA the least concerned at 35 percent.
In comparison, 43 percent and 36 percent, respectively, of
dealmakers in LATAM and EMEA expect a slowdown in Chinese economic
growth to have an impact on M&A activity in their region over
the next six months.
Download the complete Intralinks DFP report.
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 DFP 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, private placements, financings, capital
raises, joint ventures 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 DFP 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 DFP (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 DFP MAY BE USED SOLELY FOR PERSONAL,
NON-COMMERCIAL USE. THE CONTENTS OF THE INTRALINKS DFP MAY NOT BE
REPRODUCED, DISTRIBUTED OR PUBLISHED WITHOUT THE EXPRESS WRITTEN
PERMISSION OF INTRALINKS. FOR PERMISSION TO REPUBLISH INTRALINKS
DFP CONTENT, PLEASE CONTACT info@intralinks.com.
About Intralinks
Intralinks Holdings, Inc. (NYSE:IL) is a leading global
technology provider of secure enterprise content collaboration
solutions. Through innovative Software-as-a-Service solutions,
Intralinks software is designed to enable the exchange and control
of information between organizations securely and compliantly when
working through the firewall. More than 3.3 million professionals
at 99% of the Fortune 1000 companies have depended on Intralinks'
experience. With a track record of enabling high-stakes
transactions and business collaborations valued at more than $28.1
trillion, Intralinks is a trusted provider of easy-to-use,
enterprise strength, cloud-based collaboration solutions. For more
information, visit www.intralinks.com.
Forward Looking Statements
The forward-looking statements contained in this press release
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are express or implied statements that are not based on
historical information and include, among other things, statements
concerning Intralinks' plans, intentions, expectations,
projections, hopes, beliefs, objectives, goals, and strategies.
These statements are neither promises nor guarantees, but are
subject to a variety of risks and uncertainties, many of which are
beyond our control and could cause actual results to differ
materially from those contemplated in these forward-looking
statements. Accordingly, there can be no assurance that the results
or commitments expressed, projected, or implied by any
forward-looking statements will be achieved, and readers are
cautioned not to place undue reliance on any forward-looking
statements. The forward-looking statements in this press release
speak only as of the date hereof. As such, Intralinks undertakes no
obligation to update or revise the information contained in this
press release, whether as a result of new information, future
events or circumstances or otherwise. For a detailed list of the
factors and risks that could affect Intralinks' financial results,
please refer to Intralinks public filings with the Securities and
Exchange Commission from time to time, including its Annual Report
on Form 10-K for the year-ended December 31, 2014 and
subsequent quarterly reports.
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"Intralinks," the Intralinks' stylized logo, and "Intralinks
Dealspace" are the registered trademarks of Intralinks, Inc. © 2016
Intralinks, Inc.
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Intralinks Holdings, Inc.For media:Ian Bruce,
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