Deal Flow Indicator Report Q409
0 likes321 views
This document is a quarterly report from IntraLinks on trends in global mergers and acquisitions activity. Some of the key findings include a 12% increase in global deal activity in Q4 2009 compared to Q3 2009, with increases seen across regions. The report cites continued stability in equity markets, increased buying of venture/private equity backed companies, and a resurgence of financial sponsor activity as drivers. Industries like telecom and media saw significant deal volume growth, while consumer and real estate saw a softening.
Deal Flow Indicator Report Q409
- 1. DEAL FLOW INDICATOR 4th Quarter 2009 Report january 14, 2010 1 866 INTRALINKS New York + 1 212 342 7684 London + 44 (0) 20 7060 0660 Hong Kong + 852 3101 7022 www.intralinks.com
- 2. INTRALINKS DEAL FLOW INDICATOR 4th Quarter 2009 Report • january 14, 2010 Our Quarterly Review of Trends in the Global M&A Market The IntraLinks Deal Flow Indicator was created to provide an early view of deal flow activity and trends in the global market. IntraLinks has been the leading global provider of M&A virtual data rooms for more than 10 years and is currently involved in nearly half of all global deal transactions greater than $25 million. Most of the deals in which we are involved are active on IntraLinks’ VDRs as many as three months prior to public announcement, providing us with unique insight and perspective on global deal flows. Major Findings • A 12% increase in global deal activity in Q4 2009 versus Q3 2009, building on an existing 10% uptick in deal activity reported in both Q2 and Q3 2009 • Q4 2009 deal flow almost equal to Q1 2008 deal flow levels, building on three straight quarters of double- digit growth in global deal activity • Deal activity increase driven by activity across EMEA, North America, and Latin America – EMEA: 20% increase – North America: 12% increase – Latin America: 9% increase Four Primary Drivers • Continued stability in the equity markets – Dow Jones Industrial Average: Up 7% versus Q3 2009 and 16% for full-year 2009 – European Markets: DAX, FTSE and CAC up more than 5% versus Q3 2009 and more than 17% for the full-year 2009 – Asia-Pacific Markets: Hang Seng and Nikkei up more than 4% versus Q3 2009; Hang Seng up more than 40% for full-year 2009 These gains in the equity markets have continued to help narrow the valuation gap that has existed between buyers and sellers and free capital sources globally. • Increased buying activity in Venture Capital/Private Equity-backed companies as a result of corporations’ stronger balance sheets and increasing cash reserves • Resurgence in financial sponsor activity • Thawing credit markets
- 3. INTRALINKS DEAL FLOW INDICATOR 4th Quarter 2009 Report • january 14, 2010 Trends Vary by Industry • Significant double-digit increases in the number of telecom and media transactions • Modest increases in industrial, manufacturing and energy sector transactions • Slight softening in consumer and real estate sector transactions (based on number of deals reaching due diligence stage) Additional Year-over-year Observations • 12% increase in number of global deals in Q4 2009 versus Q3 2009 across all major geographic regions (North America, Latin America, EMEA and Asia-Pacific): largest growth observed in EMEA • 17% overall decrease in number of global deals for full-year 2009 versus full-year 2008 (despite improving trend in deal activity over last three quarters) TRENDS IN GLOBAL DEAL VOLUME 120% -2% +9% 100% -19% +12% % of Q1 2008 Deals -18% +10% 80% +10% 60% 40% 20% 0% Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 The first bar on the left is the benchmark showing the number of deals in Q1 2008. The line shows the quarter to quarter change in deal volume The IntraLinks Deal Flow Indicator is calculated based on the total volume of IntraLinks exchanges that were proposed for use by deal teams that initiated projects during the quarter. The totals are then analyzed by global regions and compared to previous time periods. © 2010 IntraLinks, Inc. IntraLinks, the IntraLinks logo and IntraLinks Deal Flow Indicator are trademarks of IntraLinks, Inc. All rights reserved. Notice: Deal Flow Indicator may be used solely for personal, non-commercial use. Contents of this report may not be reproduced, distributed or published without the permission of IntraLinks. For permission to republish Deal Flow Indicator content, please contact info@intralinks.com. This report is provided “as is” for information purposes only, and IntraLinks makes no guarantee, representation or warranty of any kind regarding the timeliness, accuracy or completeness of its content.