Updated March 20th, 2024
Sustained Deal Volumes with Strategic Valuation Adjustments
Despite economic uncertainties, the Nordic M&A consumer sector maintained high activity levels, showcasing a 35% increase in deal volumes from H2-22 to H2-23. Investors and companies navigated through the valuation recalibration, with trading multiples settling well below historical averages, reflecting the market's evolving dynamics and cautious optimism.
Rebounding Consumer Confidence
A significant recovery in consumer confidence was observed across the Nordics in 2023, after a period of higher high’s in 2021 and lower low’s in 2022, compared to indexed consumer confidence in the rest of the world. This resurgence indicates a positive shift in consumer sentiment, potentially driving increased spending and investment in the region.
Robust Engagement Despite Economic Headwinds
The Nordic region's consumer M&A landscape demonstrated resilience and strategic adaptability amidst challenges like inflation and geopolitical tensions. The market's sustained deal activity and optimistic consumer outlook hint at a vibrant environment ripe for strategic opportunities and growth.
We have seen a significant drop in deal volume for all the Nordic countries from FY21 to FY22, except for Norway where activity have been stable.
High inflation combined with a European energy crisis and rising interest rates hit the Nordic countries in H1 2022, and is expected to impact consumer spend going forward.
Following a strong development in trading valuation, the Nordic consumer index had a correction through 2019 and a further dip in 2020, due to Covid-19. Trading valuation levels have since rebounded and, following a strong end to 2020, the index has continued developing positively in 2021.
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