For the first quarter of 2012, the IntraLinks Deal Flow Indicator (DFI), which provides an early view of current deal flow activity and trends in the global market prior to public announcement, shows a 23 per cent increase in global merger and acquisition (M&A) deal activity compared to Q1 2011.
All regions also showed a year-over-year positive trend for Q1 2012 over Q1 2011, with the strongest growth in Asia Pacific (58 per cent) and similarly positive trends in Latin America (42 per cent) and Europe/Middle East/Africa (EMEA) (29 per cent). While North America also posted an increase, it was more modest with only 12 per cent.
Despite the 23 per cent year-over-year growth, the DFI also reveals flattening deal volume over the last three quarters, from Q3 2011 to Q1 2012. From Q3 to Q4 2011, M&A deal activity had a 1.5 per cent increase globally and in Q2 to Q3 2011, quarter-to-quarter M&A deal activity was flat or negative. In Q1 2012, EMEA deal flow activity showed modest 1.5 per cent growth, while Latin America and North America showed small declines, 2 per cent and 3.5 per cent respectively. Adding to this flattening deal volume is volatility quarter over quarter, with Asia Pacific down 19 per cent in Q4 2011 and up 16 per cent in Q1 2012.
“Companies are still digesting acquisitions from 2010 and 2011 while remaining pragmatic about additional potential targets,” says Matt Porzio, vice president, M&A product marketing at IntraLinks. “As Boards and C-level executives mandate a more structured approach to the M&A process, corporate development professionals are realising the need to streamline their processes to better manage the eclectic challenges along the deal lifecycle. This prolonged decision making and cautiousness is resulting in steady deal volume.”
IntraLinks’ Deal Flow Indicator results are based on the company’s involvement in a significant per centage of M&A deals in the early stages of each transaction, providing a leading perspective on global deal activity. IntraLinks has been a global provider of M&A virtual data rooms for more than 15 years, providing a cloud-based platform that accelerates deals from the beginning to the end of the process. In today’s economy, the ability to conduct due diligence on opportunities around the world and execute on deals that achieve value requires a concentrated strategy.
The IntraLinks Deal Flow Indicator is calculated using the total volume of IntraLinks exchanges that were proposed for use by deal teams initiating projects during the previous quarter. The totals are then analyzed by global regions and compared to previous time periods. This report is based on observations and subjective interpretations of M&A deal activity and is not intended to be an indicator of IntraLinks’ business performance or operating results for any prior or future period.
