Nordic Dealmakers Optimistic About 2025 as M&A Activity Rebounds

March 27, Nordic M&A advisors are entering 2025 with renewed optimism, as 77% expect an increase in deal activity in 2025. Dealsuite’s latest Nordic Dealmaker Insights report highlights a rebound in market sentiment, supported by improving economic conditions, increased investor readiness, and strong momentum in key sectors like IT services. With 42% of deals now involving foreign partners and the majority of advisors observing growing international activity, the Nordic mid-market continues to expand its global reach.

Increasing cross-border activity

In the past five years, there has been a marked increase in cross-border M&A activity within the Nordic SME sector. Currently, 4 out of 10 deals involve a foreign deal partner, accounting for 42% of transactions. A substantial 78% of advisors have noticed an increase in the number of transactions involving international components.

Floyd Plettenberg, CEO of Dealsuite, comments, "As we witness the M&A market becoming increasingly transparent and accessible, it's clear that the opportunities for engaging in cross-border transactions are expanding. These deals not only offer favorable conditions and competitive pricing but also open avenues for significant market expansion and enhanced global competitiveness. At Dealsuite, the growing demand for international opportunities is evident. Just recently, we had a client from Poland travel to the UK specifically to explore these opportunities at a Dealsuite networking lunch. This level of engagement is a testament to the vital role that global connectivity plays in today’s M&A landscape."

Leading sector: IT Services

The IT services sector is projected to lead transaction growth in 2025. This surge is driven by continuous advancements in automation, digitalization, and artificial intelligence, making it a key target for private equity. As companies across all industries increasingly digitize, this sector represents a growth market with both short-term and long-term potential.

Big difference between multiples for large and small companies

The results of the Dealsuite survey confirm that companies with a low EBITDA have a lower multiple than those with a high EBITDA. On average, the difference in EBITDA multiples between companies with a normalized EBITDA of €200,000 and €10,000,000 is 3.3 (3.9 compared to 7.2).

The Nordics market is attractive to foreign buyers

The Nordic region is characterized by its strong, stable economies and a low-risk business environment, making it an attractive landscape for international transactions. Companies in the Nordics are often praised for their high quality, robustness, and innovative capabilities, particularly in sectors like digitalization, AI, medical equipment, and sustainability.

Positive market outlook for 2025

The M&A mid-market in the Nordics looks set for a robust 2025, fueled by several positive economic and market trends. With interest rates declining, alongside controlled inflation, the financial landscape is becoming more favorable to transactions. 77% of advisors express optimistic expectations for the first half of the year.

‍