intralinks quarterly review of global m&a market trends
TRANSCRIPT
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Our Quarterly Review of Trends in the Global M&A Market
1st quarter 2012 report
MAY 15, 2012
IntraLinks has been a leading global provider of M&A virtual data rooms for more than ten years. Our involvement in a signifi cant percentage of M&A deals in the early stages of each transaction aff ords us uncommon perspective and insight on global deal fl ow.
The IntraLinks Deal Flow Indicator was designed to provide an early view of aggregate deal fl ow activity and trends in the global market.
Deal Flow Indicator
1st quarter 2012 reportMAY 15, 2012IntraLinks Deal Flow Indicator
Major fi ndings
• Sequential change in deal volume was fl at in Q1 2012 from Q4 2011.
• Quarter-to-quarter numbers showed varied deal volume, with Asia Pacifi c posting the only signifi cant growth.
– Asia Pacifi c: 16% increase in Q1 2012 from Q4 2011, after a decline in Q4
– Europe, Middle East and Africa (EMEA): 1.5% growth in Q1 2012 from Q4 2011
– Latin America: 2% decrease in Q1 2012 from Q4 2011
– North America: 3.5% decrease in Q1 2012 from Q4 2011
• Year-over-year global deal activity was up 23% in Q1 2012 over Q1 2011.
• Year-over-year growth across the board, with the strongest growth in Asia Pacifi c and Latin America.
– Asia Pacifi c: 58% increase Q Q1 2012 over Q1 2011
– Latin America: 42% increase Q1 2012 over Q1 2011
– EMEA: 29% increase Q1 2012 over Q1 2011
– North America: 12% increase Q1 2012 over Q1 2011
Trailing twelve month aggregate deal volume
• Annual deal volume for the period of Q2 2011 through Q1 2012 was up 22% over the previous period deal volumes from a year earlier.
• Year-to-year growth in total annual deal from Q2 2011 through Q1 2012 across the board, with the strongest growth in Asia Pacifi c and Latin America.
– Latin America: 48% increase
– Asia Pacifi c: 29% increase
– EMEA: 28% increase
– North America: 14% increase
Primary drivers
We believe these fi ndings are consistent with key drivers being reported in the marketplace
• Steady deal activity and volume in the M&A market
• Companies still digesting acquisitions from 2010 and 2011 while remaining pragmatic about additional potential targets
• Skepticism and uncertainty over potential regulatory and tax changes in various countries and regions
• Financial sponsors eager to invest capital but skeptical about the ability to generate the required returns
• Markets steadying while still showing some volatility.
• The Dow Jones industrial average: fl at from Q4 2011 and down 1% over Q1 2011
• S&P 500: up 12% from Q4 2011 and up 6% over Q1 2011
• NASDAQ: up 17% from Q4 2011 and up 10% over Q1 2011
• European markets: The DAX, FTSE, and CAC rose 15%, 3%, and 8% respectively from Q4 2011, but down 4%, 3%, and 14% in Q1 2012 over Q1 2011
• Asia-Pacifi c markets: Hang Seng up 11.5% while the Nikkei was up almost 20% from Q4 2011. Q1 2012 over Q1 2011, the Hang Seng was down 12%, while the Nikkei was up 3%.
-5
0
5
10
15
20
NORTH AMERICA
PER
CEN
T %
EMEA
LATINAMERICA
ASIA PACIFIC
QUARTER TO QUARTER DEAL VOLUME CHANGE
0
10
20
30
40
50
60
NORTH AMERICA EMEA
LATINAMERICA
ASIA PACIFIC
PER
CEN
T %
YEAR-OVER-YEAR GLOBAL DEAL ACTIVITY CHANGE
0
10
20
30
40
50
NORTH AMERICA EMEA
LATINAMERICA
ASIA PACIFIC
PER
CEN
T %
TRAILING 12 MONTH CHANGE IN DEAL VOLUME OVER PRIOR PERIOD
1st quarter 2012 reportMAY 15, 2012IntraLinks Deal Flow Indicator
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 quar-ter. The totals are then analyzed by global regions and compared to previous time periods. This report is based on observations and subjective interpretations of M&A deal activity and is not intended to be an indicator of IntraLinks’ business performance or operating results for any prior or future period.
NOTICE: “INTRALINKS” AND THE INTRALINKS LOGO ARE THE REGISTERED TRADEMARKS OF INTRALINKS, INC. THE DEAL FLOW INDICATOR MAY BE USED SOLELY FOR PERSONAL, NONCOMMERCIAL 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 [email protected]. 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 THE CONTENT OF THE REPORT. THIS REPORT IS NOT INTENDED TO CONVEY INVESTMENT ADVICE OR SOLICIT INVESTMENTS OF ANY KIND WHATSOEVER. THIS REPORT IS BASED ON OBSERVATIONS AND SUBJECTIVE INTERPRETATIONS OF M&A DEAL ACTIVITY AND IS NOT INTENDED TO BE AN INDICATOR OF INTRALINKS BUSINESS PERFORMANCE OR OPERATING RESULTS FOR ANY PRIOR OR FUTURE PERIOD.
© 2012 IntraLinks, Inc. All rights reserved.
Trends vary by industry
Deal volume for top eight industries:
• Globally, the results of the DFI indicate that the largest quarter-to-quarter growth was observed in the energy, life sciences, and manufacturing sectors
• North America showed large gains in fi nancial services and manufacturing, but a decline in energy deals
• EMEA saw a signifi cant boom in life sciences and manufacturing, but a decline in technology deals
• Asia-Pacifi c observed large gains in energy and manufacturing, but saw declines in fi nancial services deals
• Latin America observed gains in fi nancial services, but saw declines in manufacturing
CONSUMER
ENERGY
FINANCIALSERVICES
LIFESCIENCES
MANUFACTURING/ INDUSTRIAL
TECHNOLOGY
REAL ESTATE& LEISURE
TELCOMMS/MEDIA/ENTERTAINMENT
DEAL VOLUME BY INDUSTRY
0
25
50
75
100
125
150
Q1'08
% O
F Q
1 2
00
8 D
EALS
Q2'08
Q3'08
Q4'08Q1'0
9Q2'09
Q3'09
Q4'09Q1'1
0Q2'10
Q3'10Q4'10
Q1'11
Q2'11Q3'11
Q4'11Q1'1
2
+9%
-2%
-3% 0%
0% 0%+1%
+21%
-19%
-18%+10%
+10%
+12%
+11%
+9%
+2%
TRENDS IN GLOBAL DEAL VOLUME
The fi rst 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.