New research from Intralinks predicts M&A deals in EMEA in the first half of 2015 will increase by 18 per cent compared to the same period last year.
Europe is now a major driver of worldwide M&A deal volume, which is predicted to increase by 12 per cent globally.
The figures come from the Intralinks Deal Flow Predictor (DFP), which tracks the volume of early-stage merger and acquisitions (M&A) transactions. It has been independently verified as a reliable predictor of future M&A activity.
The Q2 2015 DFP shows particularly strong performances in Europe, Middle East and Africa (EMEA) and North America, but significant declines in South America.
Stable, “safe-haven” countries such as Germany continue to be a major driver of M&A activity in Europe, where the rebound in activity in economies with strong recovery potential, such as France, Italy and Spain, continues.
Energy, power and technology look to be the most active sectors over the next two quarters.
Intralinks also revealed the findings from its Global Sentiment Survey that gauged opinions among global M&A professionals on the future deal environment. It found 64 percent expect deals volumes to increase over the next six months.
The combined results provide exclusive insights into global M&A deal volumes and market trends through Q2 2015.
“Based on the activity reported in this DFP report, the volume of global announced M&A in 1H 2015 will be significantly above that of 1H 2014,” says Matt Porzio, vice president of M&A strategy and product marketing at Intralinks. While we expect that mega deals (those over $5 billion) will continue to dominate the headlines, we believe that the number of mega deals announced in 2015 will be fewer than in 2014, while mid-market M&A will remain strong and financial sponsor activity will increase.”
Philip Whitchelo, vice president of strategy & product marketing for EMEA and APAC, Intralinks, says: “M&A is clearly back on the agenda for corporates in 2015. With continuing uncertainty and volatility in many economies, companies and their advisers seeking growth opportunities need to quickly react to, and take advantage of, opportunities that may arise. Preparedness and speed of execution are among the critical factors for success in rapidly shifting market conditions, where opportunities to close deals may not last long.”
