M&A activity expected to increase for domestic business restructuring, strengthening competitiveness, and entering new businesses

According to Intralinks, the number of M&A deals announced in the Asia-Pacific region during the first half of 2018 is projected to increase by approximately 14% year-over-year, with an expected range of 7% to 21%. The 'Intralinks Deal Flow Predictor,' released quarterly, is an indicator that forecasts future M&A transaction trends and has proven its accuracy.

Over the next six months, deals in the Asia-Pacific region are expected to increase most significantly in the energy and power, industrial goods, and materials sectors, including South Korea, China, Hong Kong, India, Southeast Asia, and Australia. Excluding Japan, the entire Asia-Pacific region saw double-digit growth in early-stage M&A activity in the fourth quarter of 2017. Along with strong global economic demand, robust economic growth and strengthening investment sentiment are emerging across the Asia-Pacific region, driven by fiscal and monetary policies.

The number of global M&A deals to be announced in the first half of 2018 is expected to increase by 10% compared to the first half of 2017, and global M&A over the next six months is predicted to be active in the consumer goods and retail, industrial goods, and healthcare sectors.

Philip Huicello, Vice President of Strategic Business Development at Intralinks, stated, “Despite recent volatility in financial markets, the trading environment remains favorable, driven by global economic growth, low inflation, low interest rates, and an abundant supply of corporate and private equity investors.” He added, “Due to the recent correction in the stock market, M&A targets may appear more attractive from a valuation perspective.”

Kim Sun-sik, General Manager of Intralinks Korea, said, “In Korea, as companies continue to pursue mergers and acquisitions to improve corporate governance, restructure businesses, strengthen competitiveness, and enter new businesses, the number of M&A deals announced in the first half of this year is expected to continue the upward trend that began in the second half of last year.”