M&A Market Report, Q2/2025: deal volume down, but valuation multiples trending up

In the second quarter of 2025, M&A activity in the Nordics continued to decline, with the total number of deals falling by 16% compared to the same period in 2024.

A total of 272 transactions were completed: 85 in the Software & Services sector (−3%) and 187 in the Industrials sector (−20%). Despite the decrease in deal volume, valuation multiples largely increased.

In the Software & Services sector, the median EV/Revenue (LTM) rose to 1.5x (from 1.0x), and EV/EBITDA (LTM) increased to 12.9x (from 7.0x). In the Industrials sector, EV/Revenue (LTM) rose to 1.2x (from 1.0x), while EV/EBITDA (LTM) decreased to 6.9x (from 8.6x).

The market was supported by the performance of several indices, particularly in the industrial space, where the S&P Nordic Industrials index approached multi-year highs. In the Software & Services sector, the SmallCap index continued its strong recovery, nearing early 2022 levels.

Growth was driven by AI-powered productivity tools, the rise of cloud-based platforms, the green transition, and declining interest rates and inflation.

While economic uncertainty and market volatility continued to dampen transaction volume, the stabilized interest rate and inflation environment lays a potential foundation for a rebound in activity in the coming quarters.

Read the full report here.