Global Insight | October 2025

Professional Buyers Dominate Small Business Sales in Nordic M&A Market

The Finnish M&A market is experiencing a fundamental shift that mirrors global trends, with professional buyers now dominating transactions previously handled between industrial players, according to Nexia Finland’s Juhana Kalpio.

Industrial companies buying competitors have become increasingly rare, Kalpio explained. Instead, private equity funds from across Scandinavia with clear consolidation strategies are reshaping deal activity.

Consolidation Wave Hits Key Sectors

The change is most visible in specific industries. Business services and HVAC/electricity have been heavily consolidated in the Nordics during recent years, Kalpio revealed, noting that few major players with €200 million to €1 billion turnover have absorbed most smaller competitors employing 10 to 50 people.

Manufacturing remains different, with companies more often acquired by competitors or industrial players, whilst business services see increasing cross-border consolidation.

Construction has struggled following the Russian conflict. The sector collapsed significantly after the Russian attack, Kalpio said.

Valuation Gaps Challenge Deals

Price expectations remain a significant hurdle. Seller expectations are currently too high and don’t align with what buyers are willing to pay, Kalpio observed, calling it a global trend affecting local markets.

Financing difficulties compound the problem, with banks demanding more securities and stronger business plans in the current unstable environment.

Alternative Structures Emerge

Share exchanges between smaller companies are gaining popularity as a cash-neutral alternative. These tax-neutral structures allow owners to combine businesses without triggering immediate tax liabilities, as no cash changes hands in the transaction.

The challenge lies in valuations and managing people’s expectations. “The biggest thing is to find agreement between the owners,” Kalpio said, describing the difficulty of bringing together “three owners who have always run their business themselves.”

Cultural Fit Trumps Numbers

Modern buyers prioritise cultural fit more than financials. “Cultural fit is very important, and I would say money is not the first thing buyers are looking for,” Kalpio noted, emphasising that buyers seek businesses they can consolidate or develop but never leaving them as they are now. The calculation of the value for the company does also vary between the buyers as synergies or opportunities as a part of a new bigger entity are often very different compared to the current setup

International Influence Grows

Even Finland’s small market is feeling global pressures. Major policy decisions from the US and other powers affect all local markets, Kalpio said. International buyers are also becoming increasingly common, with recent deals involving private equity from other countries.

Sellers Must Adapt or Miss Out

The dominance of professional buyers has fundamentally changed the rules of engagement. Sellers clinging to inflated valuations whilst ignoring cultural fit and consolidation potential will find themselves side-lined. With traditional bank financing tightening and international buyers increasingly active even in smaller markets, understanding alternative deal structures like share exchanges may prove essential. The Nordic experience shows that those who recognise these shifts early gain a crucial advantage in an increasingly volatile marketplace.