Affärsvärlden | Increasingly Lower Activity in the M&A Market – But Advisers See Glimmers of Light

Oct 2023

Originally posted by Affärsvärlden on October 6, 2023.

While the total number of acquisitions fell in Sweden during the third quarter, transaction value increased, and new legislation and other market dynamics may help accelerate deal activity.

Fredrik Bolander, Managing Director and Head of Nordics at Lincoln, said he has received consistent feedback from private equity that there have been fewer interesting processes in the market this year.

“Recently, however, we have seen greater optimism,” Fredrik added. “More processes are being prepared and launched, especially in the middle segment, given that this is where buyers can find good financing.”

According to Fredrik, sellers have realized that the interest rate situation has normalized, and also that inflation and energy prices have stabilized.

Private equity may also help drive transaction activity in the coming quarters.

“The private equity companies will come under more pressure from their investors to exit their portfolio companies. There are many older assets in the portfolios that will eventually have to be sold. The processes take longer in today’s situation, so whether it happens in Q4 or Q1 next year remains to be seen,” said Fredrik.

View additional insights in the original article.