Generational Equity Predicts Q4 M&A Activity

By Generational Equity


Recently, Intralinks – a leading global provider of software and services, including Virtual Data Rooms (VDRs), for buy-side and sell-side M&A deal management – released their fourth quarter update to their Deal Flow Predictor (DFP). The DFP is developed based on the number and speed of VDRs being opened and used by buyers, sellers, and intermediaries around the world. Their involvement in the early stages of a significant percentage of the world’s M&A transactions gives them unique insight into the expected volume of future announced M&A deals.

Throughout the years, the DFP has been very accurate in terms of predicting pending deal activity. In fact, according to the company, “the Intralinks Deal Flow Predictor has been independently verified as an accurate six-month forecast of future changes in the worldwide volume (number) of announced M&A transactions, as reported by Thomson Reuters.” The Thomson Reuters data on announced deal volumes for the past four quarters has been adjusted by Intralinks for expected subsequent changes in reported announced deal volumes in Thomson Reuters’ database.

We have regularly seen a correlation between buyers that we work with on our transactions, their activity, and the DFP. Here is the DFP update from Intralinks for the remainder of the year:

In North America (“NA”), the number of announced M&A deals in FY2017 is predicted to increase by around 10 percent YoY, with a range between 7 percent and 13 percent. Over the next six months, the strongest growth in NA deal announcements is predicted to come from the Healthcare, Materials, and Consumer & Retail sectors.

The reports I am getting from our deal teams reflect this prediction as well. In fact, we are on pace for a record year in terms of deals closing. YTD we have closed 12% more transactions than last year, and the total value of the closed deals is up nearly 100%. So, as we have been saying for some time, we are truly in the midst of one of the strongest “seller’s markets” in years, making it an optimal time for business owners to dust off their exit plans and update their timing.

If you are interested in learning more about how M&A trends can impact you and your company, and how to take advantage of these trends, you should attend a Generational Equity exit planning conference. We hold these throughout North America and they are designed to help business owners protect the significant investment that many have made in their businesses. To learn more, use the following links:

By Carl Doerksen, Director of Corporate Development at Generational Equity.

© 2021 Generational Equity, LLC. All Rights Reserved.