15 February 2018

APAC M&As to grow 14% in 1H18

- Asia Pacific forecast to lead global M&A growth in 1H18: Intralinks Deal Flow Predictor

- APAC merger and acquisition (M&A) announcements predicted to increase by 14% year-over-year

The number of announced M&A deals in Asia Pacific (APAC) in 1H18 is predicted to increase by around 14% year-over-year (YOY), with a range between 7% and 21%. This is based on data from the latest Intralinks Deal Flow Predictor, an indicator of future M&A announcements with a proven track record for accuracy.

Over the next six months, the strongest growth in APAC deal announcements is predicted to come from the energy & power, industrials and materials sectors in North Asia (mainland China, Hong Kong and South Korea), India, Southeast Asia and Australia. All APAC regions, except Japan, saw double-digit increases in their volumes of early-stage M&A activity in Q417. For most of the APAC region, strengthening global economic demand and supportive fiscal and monetary policy actions are driving vigorous economic growth and increasing dealmaking confidence.

Worldwide, the number of announced M&A deals in 1H18 is expected to increase by up to 10% YOY compared to 1H17. Over the next six months, the strongest growth in worldwide deal announcements is predicted to come from the consumer & retail, industrials and healthcare sectors.

“Despite recent volatility in financial markets, the dealmaking environment continues to be supported by a strong pickup in global economic growth, low inflation, low interest rates and a plentiful supply of corporate and private equity bidders”, said Philip Whitchelo, Intralinks’ VP for Strategic Business Development. 

“The recent correction in equity markets may also result in valuations of M&A targets becoming more attractive.”
The Intralinks Deal Flow Predictor forecasts the number of future M&A deal announcements by tracking early-stage M&A activity – new sell-side M&A transactions across the world that are in preparation or have reached the due diligence stage. These early-stage deals are, on average, six months away from their public announcement.

The Intralinks Deal Flow Predictor has been independently verified as an accurate predictor of future changes in the number of worldwide announced M&A transactions, as reported by M&A data providers such as Thomson Reuters.