Market Review | Q4 2022 | Oaklins Denmark: Mid-market M&A and financial advice globally

The M&A activity in Denmark and Europe in 2022 almost matched the record high level of 2021

Summary

The number of transactions in both Denmark and Europe in Q4 2022 shows a slight increase compared to the same quarter last year (Q4 2021), which was already at a historical high level. This indicates a strong market and a solid potential for continued good activity level into 2023, despite a number of uncertainties across the broader market.

In Denmark, the fourth quarter of the year offered a high level for Danish company sales, which were on par with the record high fourth quarter in 2021. The number of transactions in Q4 2022 underlines a strong market, making the activity level of 2022 on par with 2021.

When looking at the European M&A-market, the level of activity in Q4 2022 is also promising. The number of transactions is still at a high level and has increased compared with Q3 2022. The high activity level in Denmark and most of Europe reflects a generally strong market, however some slowdown can be expected due to market uncertainties, including geopolitical uncertainty and inflation.

(Graph; development of the number of Danish companies sold)

The M&A market is displaying a stronger resilience than we had dared to hope for and 2022 turned out to be another strong year. The activity level gives an overall picture of a confident market, and business owners still very much have their sights set on growth, even during the current market and geopolitical uncertainties. Buyers remain thorough in their due diligence efforts, considering how a target would perform during a downturn, but they also show a willingness to plan for the time beyond these uncertainties, and show a willingness to pay attractively for those companies that are well-positioned. This makes it even more important for sellers to secure proper advice and exposure to a global buyer field. DANIEL SAND – PARTNER, OAKLINS DENMARK