BY Fraser Tennant
Global M&A activity over the six months ending Q1 2020 is expected to increase by around 6 percent year-over-year (YOY), according to a new Intralinks report.
In its ‘Deal Flow Predictor’, a quarterly prediction of future trends in the global M&A market, Intralinks forecasts a continuing M&A recovery – a major uptick from the 7 percent YOY decline in worldwide deal announcements in H1 2019.
The report’s insight is based on analysis by financial markets data and infrastructure provider Refinitiv and Intralinks, using predictive models to forecast the volume of new deal M&A announcements worldwide over the next six months.
Drilling down, in Europe, the Middle East & Africa (EMEA), Intralinks’ predictive model forecasts that the number of announced M&A deals is expected to increase by around 5 percent YOY over the six months ending Q1 2020. In North America, the number of announced M&A deals is forecast to increase by approximately 7 percent YOY over the same period.
Among other key findings, the strongest growth in deal announcements is expected to come from the technology, media and telecoms (TMT), materials and energy & power sectors.
“The Deal Flow Predictor forecasts the volume of future M&A 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,” said said Philip Whitchelo, vice president of Intralinks. “These early-stage deals are, on average, six months away from their public announcement.”
Report: Deal Flow Predictor: forecast of global M&A activity through Q1 2020