Intralinks Deal Flow Predictor (DFP)

What Is the Intralinks Deal Flow Predictor (DFP)?

The Intralinks Deal Flow Predictor (DFP) is a leading indicator of merger and acquisition (M&A) declarations. It is distributed quarterly by Intralinks, a provider of cloud-based, secure virtual data rooms that investment bankers use to conduct due diligence on expected deals.

Understanding the Intralinks Deal Flow Predictor (DFP)

Intralinks tracks the number of beginning phase M&A deals that are in planning or at the due diligence stage. Utilizing this proprietary data, the Intralinks Deal Flow Predictor (DFP) estimates deal volume six months into the future, globally and locally, in North America, Asia Pacific and Japan, Europe, the Middle East, Africa, and Latin America. The Intralinks DFP has been independently checked as an accurate predictor of the number of future M&A deal declarations.

Methodology of the Intralinks Deal Flow Predictor

Intralinks compares the data underlying the DFP with subsequent announced deal volume data reported by Refinitiv to build a econometric model (utilizing standard statistical strategies proper for assessing a linear regression model) to foresee what was in store reported volume of M&A transaction declarations two quarters in advance, as recorded by Refinitiv. Analysis and Interference, an independent global economic and financial markets data and advisory firm, assessed, imitated and assessed the model. Their analysis showed the Intralinks DFP has an exceptionally high level of statistical significance, with an over 99.9% likelihood that it is a statistically huge half year predictive indicator of deal declarations.

As per Intralinks, "The statistics contained in the Intralinks Deal Flow Predictor address the volume of virtual data rooms (VDRs) made, or proposed to be made, through Intralinks or different providers. The VDRs are utilized to conduct due diligence on proposed transactions, including asset sales, divestitures, private positions, financings, capital raises, joint endeavors and partnerships. These statistics are not adjusted for changes in that frame of mind of the VDR market or changes in market demand for VDR services."

How the Data Is Useful to Investors

Knowing where mergers and acquisitions could happen geologically and in what [sectors](/area analysis) can assist investors with arriving at additional educated conclusions about where they should buy or sell securities. They can likewise compare their own contemplations about the effect of mergers and acquisitions on their investment strategy with others' viewpoints across the globe.