Market Review | Q1 2021 | Oaklins Denmark: Mid-market M&A and financial advice globally

M&A activity in Denmark and Europe continues to rise to record levels in Q1 2021, despite COVID-19

Summary

The M&A activity in the second half of 2020 and in the first quarter of 2021 shows very positive signs, both in Denmark and Europe. The number of transactions in Q1 2021 breaks the record set in the last quarter of 2020, which indicates a promising development for the remainder of the year as buyers and sellers of companies are increasingly looking beyond the COVID-19 pandemic.

In Denmark, the first quarter of the year offered a record high level for Danish company sales. The figures for Q1 2021 also show that Danish companies’ appetite for international acquisitions is at a historically high level. After a challenging first half of 2020, a clear recovery was seen towards the end of 2020 and in the beginning of 2021, where the total amount of Danish transactions is at a record high.

When looking at the European M&A-market, the level of activity in Q1 2021 also reflects a clear upward trend. The number of transactions is rising, even after a strong Q4 in 2020, and the total number of transactions is also at a record high. The high activity in Denmark and most of Europe reflects a generally strong market, and probably includes an element of catch-up effect from transactions which were put on hold early in the pandemic, but can now be completed.

The M&A market is currently very strong and nothing seems to change that in the coming months. In Q1 2021, which marks the anniversary of the first lockdown in Denmark and across most of Europe, M&A activity is at a record level, continuing the strong momentum from the end of 2020. Both strategic and financial buyers are showing a growing appetite in a market that is increasingly looking beyond COVID-19. While Q1 2021 is boosted by some catch-up from delayed 2020 transactions, the high level of activity bodes well for 2021. DANIEL SAND – MANAGING PARTNER, OAKLINS DENMARK