Tendencies in Nordic M&A

Anders Klerke

Student thesis: Master thesis

Abstract

Tendencies in Nordic M&A With the world growing ever more globalized, it is relevant for a multiple number of stakeholders to be aware of the tendencies within M&A – ranging from banks to law-firms and not at least the companies themselves. Although M&A has been relatively well studied for years, the research related to the Nordics is a bit scarcer, most likely due to the relatively small size compared to several other countries around the World. As such, this thesis explores how Nordic M&A have developed since 2005 and up until today, with focus being specifically on the acquisitions of Nordic companies, while continuously examining the relationship between deals with an acquirer from outside the Nordics and the ones with a Nordic acquirer. In total, 8.518 target deals were observed throughout this period of time. The findings from this analysis showed record levels, even surpassing the years leading up to the financial crisis. In addition, the tendencies definitely point towards an increased interest in the Nordics from acquirers outside the home market, although deals with other Nordic acquirers still clearly makes up the largest portion of the deals. From the total population of 8.518 target deals, it was possible to apply 1.319 of these into research on the multiples that deals were traded at. From those findings it was hard to conclude that high deal activity equalled higher multiples being paid. Contrary to this, it was possible to conclude that cross-border deals quite consistently were traded at higher multiples than domestic and thus indicating that foreign acquirers appear to pay a premium. Finally, this thesis concludes that the stock market has had a significant influence on the activity levels within M&A, which was found in analysing the total target population, cross-border and domestic deals respectively. The same proved to be the case when combining the GDP growth and the interest rate. Aside from those, other determinants were found to influence the number of deals, but to a less consistent degree

EducationsMSc in Accounting, Strategy and Control, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages125