For M&A in the Nordics, All Signs Point North in 2022

Last year, the Nordic region, like many others, fell into a COVID-19 pandemic-related slump. But this year, also like many others, the region has rebounded.

During the first half of 2021, mergers and acquisitions (M&A) deal value in the Nordics has been more than double that of H1 2020. Heading into 2022, dealmaking is still expected to remain strong. We garner this from the detailed market analyses in the latest edition of the SS&C Intralinks Deal Flow Predictor for Q1 2022. Just released for Q1 2022, it's a detailed and accurate six-month forecast of M&A activity based on global deals in preparation or beginning due diligence.

A combination of corporate divestitures and high valuations, as well as high levels of dry powder and low-interest rates, have helped drive the pipeline for new deals. Valuations have also created serious competition for qualified assets. Some of the best opportunities have been in Tech-related deals: Fintech, Healthcare Technology, Software and IT Services have all buttressed the growth here.

While the number of special purpose acquisition companies (SPACs) has rapidly declined, initial public offering (IPO) activity has remained strong, and we expect that to continue into the new year. Public M&A is currently more attractive than private. 

As 2022 approaches, dealmakers in the Nordics are busy focusing on execution. The prevailing hope here is that no potential obstacles — like the impact of a new coronavirus variant, a geopolitical shock or high inflation — rear their heads.