Intralinks Survey Shows Deal Valuation Is Biggest Challenge in APAC M&A

Results combine with Intralinks Deal Flow Indicator to provide unique insight into global M&A

SYDNEY, July 17, 2014 /PRNewswire/ — A new survey from Intralinks® Holdings, Inc. (NYSE: IL) has confirmed that APAC M&A professionals feel asset valuation will be the greatest pain point on successfully completing deals over the coming 12 months.

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The results were published as part of the Intralinks Global Sentiment Survey, a poll of more than 1,000 M&A professionals worldwide conducted in June 2014 that gauges dealmakers sentiments and views on the current state of the M&A market. Respondents said they believe deal valuation represents a greater challenge to the deal process than other factors such as shareholder activism against underperforming companies, or political interference.

“If we look at the varying valuations impacting current APAC deals, the challenge around deal valuation for dealmakers is evident. A few prime examples include Singaporean agribusiness firm Wilmar’s current bid to takeover Australian food processor Goodman Fielder, and the recent takeover bids for premium Australian department store David Jones,” said Matt Porzio, vice president of M&A strategy and product marketing at Intralinks.

The survey also revealed that on a global level, 67% of dealmakers indicated they are optimistic about the current deal environment in comparison to the previous six months, while for APAC in particular a slightly lower 65% of dealmakers claimed they are positive about the current deal landscape. Interestingly, the Intralinks Global Sentiment Survey also uncovered that 80% of dealmakers in APAC predict that deal volume will increase over the next six months (compared with 77% globally), and 68% said they do not expect a change in political interference in M&A activity over the next 12 months.

“The global M&A market is continuing to exhibit higher levels of activity than in 2013, maintaining optimism among dealmakers,” added Mr. Porzio.

Furthermore, Global Sentiment Survey results for APAC show:

  • 63% of dealmakers expect to participate in more M&A deals than six months ago;
  • 56% expect shareholder activism will continue to increase;
  • Industry with the most M&A activity according to dealmakers is energy and power.

In addition, Intralinks today released the latest Intralinks Deal Flow Indicator™(DFI), a unique predictor of future M&A activity. Combined with the Global Sentiment Survey, the research provides unparalleled insight into global M&A deal volumes and market trends through Q4 2014.

Media contact Anna Frilingos +61-2-8014-5033