Finland's M&A Market Shows Strong Deal Value Growth Amidst Steady Transaction Volumes

Rise in Finnish M&A Market Value in 2025

In 2025, the M&A landscape in Finland presented an intriguing picture. Despite an apparent stagnation in transaction volume, with 579 completed deals—a mere dip from 580 in the previous year—the total value of these deals surged by approximately 20%. This rise took the aggregate deal value to an estimated €12.5 billion, up from €10.5 billion in 2024. Such developments indicate a significant shift in market attitudes, favoring larger and more strategic investments even in the face of macroeconomic challenges.

Mikko Sistonen, Partner at Carner Corporate Finance, highlighted that the market's selectivity was a defining characteristic of 2025. Investors were no longer pursuing deals simply for activity’s sake; instead, they focused on the strategic fit, cash flow resilience, and overall profitability of potential investments.

Key Transactions and Trends

The Finnish M&A market of 2025 was notably influenced by a series of large-scale transactions. A landmark investment by Hellman & Friedman in Mehiläinen underscored the continued attractiveness of the healthcare sector, where predictable cash flows and demographic growth remain appealing to long-term investors. Additionally, Tietoevry's divestment of its Tech Services business, resulting in the establishment of Vivicta as a standalone entity, reflected a strategic pivot towards sharper focus through carve-outs, demonstrating a broader trend of unlocking growth outside large corporate structures. Infrastructure emerged as another pivotal theme, notably marked by Triton Partners' formation of Lohkare Infra Oy, which consolidated various Finnish infrastructure companies, signaling long-term confidence and consolidation potential in this sector.

Macroeconomic Influences on M&A Activity

The context of 2025’s M&A activity cannot be dismissed: Finland grappled with weak economic growth, hovering between 0.2% and 0.5%, and an unemployment rate that surpassed 10%, among the highest in Europe. Such economic pressures necessitated a selective approach from both buyers and sellers. Many potential sellers hesitated to exit in a sluggish market, while buyers adopted stricter investment criteria, seeking firms that exhibited not just growth potential but also solid profitability aligned with their strategic objectives.

Sistonen stressed that mere growth narratives were no longer adequate; investors demanded a clear, demonstrable value proposition and alignment with their long-term strategies, underscoring a maturation of the Finnish M&A market.

Looking Ahead: A Transition Year Toward Recovery

Carner Corporate Finance positioned 2025 as a transitional phase for Finland's M&A environment. The market, which did not fully return to its previous momentum, did show signs of shifting away from stagnation and adapting to a new operational reality. Private equity players, still sitting on significant capital reserves, are preparing to capitalize on the next upturn, indicating a pipeline of strategic investments waiting for more favorable economic conditions and restored market confidence.

While the conditions in Finland’s economy and labor market remain pivotal in determining the pace of recovery, 2025 marked a critical step away from uncertainty. The superficial calm belied a more intricate dynamic, leading to a period of selective investment rather than outright apathy in the M&A space.