The Intralinks Deal Flow Predictor (DFP) report showed that EMEA is the best performing region for growth in global early-stage M&A, increasing by 11% compared to an 8.1% year-on-year increase in global early-stage M&A activity. Meanwhile, the UK outperformed EMEA despite the potentially destabilising upcoming EU referendum.
“Despite potential concerns over a “Brexit” decision in the anticipated UK referendum on EU membership, European dealmakers still appear willing to start deals, which should translate into a higher level of M&A announcements in the first half of this year, compared to the same period last year,” said Philip Whitchelo, Intralinks’ vice president of strategy and product marketing.
Within the EMEA region the consumer, real estate and retail sectors are seeing the largest increase in early-stage M&A activity and deal pipelines while materials, high technology and energy & power deal flow has weakened, the report said.
“Concerns over a slowing global economy and market volatility mean that the rate of growth in M&A in 2016 looks likely to be lower than in 2015, but it does not indicate that the M&A boom we have witnessed over the past two years is coming to an end in the next six months,” said Whitchelo.
The report predicts the volume of future M&A deal announcements by tracking the number of early-stage M&A deals that are in preparation or have reached the due diligence stage.
