Our Prediction: M&A Deal Volumes Will Rise in 2014

Based on data from the Intralinks Deal Flow Indicator, 2014’s increase in deal flow should continue.

From the Intralinks DealCloser Blog:

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Our Prediction: M&A Deal Volumes Will Rise in 2014

We’re just over halfway through the year, and our prediction is that 2014 is set to be a record year for dealmakers, with both valuations and deal volume on the rise.

We’ve got data to back up those assertions. As Intralinks’ Philip Whitchelo explains: “Based on the Intralinks Deal Flow Indicator™ (DFI) results so far this year, Intralinks is predicting that global announced M&A volumes for the full year of 2014 will, for the first time since 2010, show an annual increase.” He adds, “This increase will be between 6 percent and 10 percent compared to 2013.”

Additionally, the overall global value of deals hit $1.75 trillion in the first half of 2014, as we noted in a recent blog. This is a worldwide seven year peak; the United States is at the forefront of this surge, with nearly a 75 percent jump over the same period last year.

And the deal volumes are catching up with the increase in value. As Philip points out: “Based on the volume of early-stage M&A activity that Intralinks is seeing in the market so far this year, and the strong historical correlation of this early-stage deal activity to the volume of future announced deals, we believe that 2014 will be the year of dealmaking recovery.”

The Predictive Nature of Intralinks DFI Data

Intralinks is a leading provider of virtual data rooms, and given its position in the market, can closely watch today’s rapidly changing M&A landscape. The Intralinks DFI tracks global sell-side mandates and unannounced deals reaching the due diligence stage — providing a unique indicator of future M&A activity levels worldwide.

As Intralinks just announced, the DFI report is showing an uptick in early-stage global M&A activity. The latest data, compiled through the end of June 2014, shows 16 percent quarter-on-quarter (QoQ) and 12 percent year-on-year (YoY) increases in early-stage global M&A activity, with particularly strong performances in Europe, Middle East and Africa (EMEA), and North America.

Based on these results, it’s likely we’ll see sustained momentum in M&A activity through the end of 2014. Want to drill down into the data by industry or region? Then take a look at the latest Intralinks DFI.

– See more at: http://blogs.intralinks.com/dealcloser/2014/07/prediction-ma-deal-volumes-rise-2014/?utm_source=soci#sthash.Qptnxwtw.dpuf

– See more at: http://blogs.intralinks.com/dealcloser/2014/07/prediction-ma-deal-volumes-rise-2014/#sthash.BrupREfU.dpuf