The Finnish M&A market update covers M&A transaction volumes, deal returns, corporate cash holdings and development in number of transactions.
- Finnish M&A market experienced strong growth in the last decade, COVID 19 crisis will drive deal volumes down
- The COVID-19 pandemic escalated in March, but only had a marginal impact on announced Q1 deal volumes
- The previous deal downturn provided the best returns for PE firms similar opportunities may rise from current crisis
- Corporates have record amounts of cash on their balance sheets downturns can provide higher returns for dealmakers
- During the financial crisis, deal volumes declined by ~50% but rebounded in less than 2 years to near record levels
- After the financial crisis M&A activity recovered after 1-2 years recovery may be faster due to historically low interest rates.