SWEDEN Law and Practice Contributed by: Louise Rodebjer, Ólafur Steindórsson, Per Dalemo and Johannes Wårdman, CMS Wistrand
CMS Wistrand Stockholm CMS Wistrand Jakobsbergsgatan 24 111 44 Stockholm Sweden Tel: +46 8 50 72 00 00 Email: sthlm@cms-wistrand.com Web: cms.law/sv/swe
1. Trends 1.1 M&A Market
In parallel with the recovery in M&A activity, global IPO markets showed clear signs of stabilisation during 2025 after several years of subdued activity. Equity markets proved resilient, supported in par - ticularly by strong performance in technology and AI-related sectors, although volatility and valuation concerns remained present throughout the year. Investor selectivity increased markedly, with a clear preference for companies demonstrating profitability pathways, strong governance and sustainable cash flows. Larger high-quality transactions were generally well received, while more speculative listings faced greater challenges. The improving deal landscape is also reflected in shift - ing market dynamics and strategic priorities among buyers. Scale and corporate focus have become increasingly important value drivers, particularly in sectors undergoing structural transformation. Com - panies are increasingly pursuing acquisitions to accel - erate digital transformation, strengthen AI capabilities and enhance sustainability efforts. At the same time, industries with high fixed costs – such as energy, financial services and telecommunications – have seen a rise in large-scale consolidation deals. Looking ahead, M&A activity in Sweden is expected to remain robust as financing conditions have stabilised and IPO pipelines have strengthened. However, reg - ulatory developments and broader economic uncer - tainties will remain key factors shaping the pace and structure of transactions.
The M&A market today shows a clear improvement compared to 12 months ago, although the develop - ment during 2025 was not linear. After a subdued first quarter, transaction activity accelerated during the second and fourth quarters, resulting in a marked year-on-year increase in overall deal volumes in Swe - den. Globally, M&A activity strengthened during 2025 and approached historically high levels. The year was characterised by a renewed focus on scale and a shift towards larger strategic transactions, supported by gradually improving financing conditions. At the same time, regulatory scrutiny, geopolitical develop - ment and national security considerations continued to influence deal timelines and structures. In Sweden, transaction activity rebounded nota - bly during the year. While the first quarter reflected continued caution in the market, the second quarter recorded one of the highest quarterly deal volumes in recent years, and the final quarter confirmed a sustained recovery trend. Private equity participation remained significant throughout the year, although the share of sponsor-led transactions declined towards year-end compared to 2024, primarily due to fewer platform investments, while add-on acquisitions and exit preparations remained active. Cross-border activ - ity increased during 2025. Domestic buyers continue to play a key role in the Swedish market; however, outbound transactions also gained importance.
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