IntraLinks Deal Flow Indicator (DFI) for the second quarter of 2012 shows a 23 per cent increase in global merger and acquisition deal activity compared to Q2 2011.
All regions also showed a year-over-year positive trend for Q2 2012 over Q2 2011, with the strongest growth in Asia Pacific (30 per cent) and similarly positive trends in Latin America (19 per cent), Europe/Middle East/Africa (EMEA) (23 per cent), and North America (22 per cent).
In addition to the 23 per cent year-over-year growth, the DFI also reveals increased volume in deals reaching due diligence over the last four quarters, from Q3 2011 to Q2 2012. Aggregate volume increased 22 per cent over the previous period from a year earlier. Year to year growth in total annual volume of deals reaching due diligence was strong across the board, with Latin America (33 per cent) and Asia Pacific (31 per cent) showing the largest increase, though EMEA and North America proved strong as well, with 26 per cent and 16 per cent increases respectively.
Energy and manufacturing showed the largest increases in North America and Latin America, while EMEA saw a significant boom in financial services and technology and Asia Pacific observed gains in consumer and real estate deals.
However, despite an overall increase in due diligence volume compared to Q1 2012, quarter to quarter numbers showed varied deal volume. North America showed the largest increase in Q2 2012 over Q1 2012, (28 per cent) while EMEA showed 20 per cent growth. Latin America proved strong as well with a 19 per cent increase after a slight dip in Q1, and Asia Pacific displayed a 4 per cent decrease, after a major uptick in Q1.
“The current trends are showing that buyers are coming back to market, albeit with a far more selective and cautious approach following months of economic volatility,” says Matthew Porzio, vice president, M&A product marketing at IntraLinks. “Buyers will be covering all their bases and conducting water-tight due diligence to minimize risks before buying assets in uncertain times. However, buyers are looking to grow their portfolios with smaller deals that they may not have entertained in the past. This strategy is stimulating activity across the board.”
IntraLinks is introducing a new format for the DFI to include more extensive analysis and commentary. IntraLinks partnered with mergermarket to expand the DFI into a new format to provide readers with more context surrounding the data. Each DFI will also feature a spotlight on a different region each quarter, as well as guest commentary.
