Market Review | Q3 2022 | Oaklins Danmark: Mid-market M&A and financial advice globally

M&A activity in Denmark and Europe is still at a high activity level, although not matching the record high level of 2021

Summary

The M&A activity in Q2 2022 showed an attractive level after the record-breaking year of 2021. The number of transactions in Q3 2022 in both Denmark and Europe shows slight decreases compared to the record-breaking 2021, but is still on an attractive high level compared to the previous third quarters.

In Denmark, the third quarter of the year offered a high level of Danish company sales, and almost on par with the record-high third quarter of 2021. The number of transactions in Q3 2022 shows promising signs that 2022 can finish on a strong note.

When looking at the European M&A-market, the level of activity in Q3 2022 is likewise promising for 2022 as a whole. The number of transactions is still at a high level but has decreased compared with Q2 2022. The high activity level in Denmark and most of Europe reflects a generally strong market, and the slow-down compared with Q3 2021 is seen as a reflection of the geopolitical instability as well as other areas of uncertainty that continue to influence Europe and large parts of the world.

2021 was a record year in the M&A market, which is unlikely to be matched in 2022. With continued geopolitical instability, rising inflation, energy prices and interest rates and continued supply chain challenges, there is plenty of uncertainty in the market. With these factors present, we see due diligence becoming more thorough, with buyers looking closely at how a target would fare during a downturn. The market is proving fairly resilient, which supports expectations for continued good activity levels, albeit at a more “normal” level than the exceptional 2021. DANIEL SAND – PARTNER, OAKLINS DENMARK