Company Valuations Are Rising – Interest in M&A Is Picking up

Interest in M&A is rising again in Finland — and company valuations are trending upward. In this blog, Partner Henrik Sandholm shares insights from our latest survey, highlighting where buyers are focusing now and why the outlook for sellers is more promising than it has been in years.

The low number of M&A transactions in Finland has been a frequent topic of discussion in recent years — often with a concerned tone. However, in our view, the situation is not as bleak as it is sometimes portrayed. According to our survey, interest in M&A is strengthening again, and buyer appetite is clearly on the rise.

The years preceding the pandemic were active for M&A. Although the pandemic temporarily slowed activity, dealmaking never stopped — and even peaked in 2021. After that, the market declined significantly, but now the trend is clearly upward again.

The outlook for the future is promising. In March–April, we asked entrepreneurs and industrial buyers about their views on the market and their intentions to engage in M&A over the next 12 months.

The results were the strongest since 2021. As many as 80% of respondents said they plan to buy or sell a company in the next 12 months — compared to 70% last year. Market attractiveness is also on the rise: 72% of respondents found the market to be either moderately or very attractive (compared to 64% the previous year).

Of course, uncertainty remains. The U.S. administration’s new tariff policies are creating tensions that are also affecting European M&A. In this environment, a clear and credible growth strategy is a key tool for any company planning to sell — it helps build trust and increase the likelihood of a successful transaction.

Where is buyer focus shifting?

Two particularly interesting findings emerged from the survey responses.

First, buyers are placing greater emphasis on cash flow. This means businesses with recurring revenue and scalable models — especially software and service companies — are now among the most attractive targets. On the positive side, profitability is no longer a strict requirement as in previous years, as long as the cash flow is healthy and predictable.

Second, a key barrier to transactions — the valuation gap — has diminished. Previously, many sellers were anchored to pre-pandemic valuation levels, which buyers could no longer justify. Now, 55% of respondents believe that company valuations are on a moderate upward trend. This improves the chances of reaching common ground between buyer and seller, potentially leading to more realistic outcomes.

Selling a business is more attractive than before

For entrepreneurs considering a sale, this development is significant. Growing demand, rising valuation levels, and a more balanced view on pricing increase the likelihood of a successful transaction. Sellers are more likely to receive a fair and reasonable return for their life’s work — and buyers see a clearer path to long-term value creation.