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Global merger and acquisition (M&A) deal activity in the first quarter of 2012 increased 23 percent compared to Q1 2011, reveals the IntraLinks Deal Flow Indicator.

All regions also showed a year-over-year positive trend for Q1 2012 over Q1 2011, with the strongest growth in Asia Pacific (58 percent) and similarly positive trends in Latin America (42 percent) and Europe/Middle East/Africa (EMEA) (29 percent).

While North America also posted an increase, it was more modest with only 12 percent.

Despite the 23 percent year-over-year growth, the DFI also reveals flattening deal volume over the last three quarters, from Q3 2011 to Q1 2012.

From Q3 to Q4 2011, M&A deal activity had a 1.5 percent increase globally and in Q2 to Q3 2011, quarter-to-quarter M&A deal activity was flat or negative.

In Q1 2012, EMEA deal flow activity showed modest 1.5 percent growth, while Latin America and North America showed small declines, 2 percent and 3.5 percent respectively. Adding to this flattening deal volume is volatility quarter over quarter, with Asia Pacific down 19 percent in Q4 2011 and up 16 percent in Q1 2012.

“Companies are still digesting acquisitions from 2010 and 2011 while remaining pragmatic about additional potential targets,” says Matt Porzio, vice president, M&A product marketing at IntraLinks.

Porzio notes that as Boards and C-level executives mandate a more structured approach to the M&A process, corporate development professionals are realizing the need to streamline their processes to better manage the eclectic challenges along the deal lifecycle.

"This prolonged decision making and cautiousness is resulting in steady deal volume,” Porzio adds.
 

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