DENMARK Trends and Developments Contributed by: Dan Moalem, Jacob Bier, Thomas Enevoldsen and Poul Guo, Moalem Weitemeyer
C3I (command, control, communications and intelli - gence) systems and autonomous platforms. Regulatory Scrutiny – the Danish War Materiel Act Certain investments and transactions involving Danish defence-related companies are subject to a special regulatory ownership approval regime under the Dan - ish War Materiel Act ( Krigsmaterielloven ). Where an ownership change falls within the Danish War Materiel Act, this regime operates as a lex specia - lis in the Danish screening landscape. The generally applicable Danish Investment Screening Act does not apply where other legislation provides for screening or intervention mechanisms based on national secu - rity considerations. As a result, ownership changes in companies covered by the Danish War Materiel Act follow a distinct approval process supervised by the In 2025, Danish M&A was defined by the steady- moving mid market rather than by megadeals, with transactions in the DKK100 million to DKK1.5 billion range forming the backbone of overall activity. The broader macroeconomic environment in Denmark remained relatively stable through 2025. Despite low unemployment and sound public finances, market participants continue to face significant uncertainty. Ongoing geopolitical tensions, trade-related frictions including tariff developments, and evolvingglobal supply chain configurations have made it difficult for investors to commit capital and make long-term investment decisions. Three sectors stand out as particularly influential in driving mid-market momentum. Technology and digi - tal services remain highly attractive, particularly soft - ware, SaaS and B2B professional services. Corporate Denmark’s corporate landscape includes a significant number of well-performing niche companies built over decades. Strategic consolidation fuels activity. Cor - porate acquirers are turning to mid-market deals as a way to expand capabilities, acquire technology and enter new geographies. In a volatile macroeconomic Danish Ministry of Justice. Mid-Market Momentum
environment, bolt-on transactions offer flexibility and faster integration while still delivering meaningful stra - tegic value. Private Equity While Denmark remains one of the most mature pri - vate equity (PE) markets in the Nordics, over the past 24 months sponsor activity has remained temperate and hesitant. Despite Denmark’s inherent advantage, including a predictable legal environment and a highly skilled, digitally proficient workforce, deal activity has frequently stalled or failed to materialise. With mount - ing pressure to deploy committed capital, while fac - ing constrained exit opportunities, fund managers are turning more frequently to continuation vehicles as an alternative. Although certain sectors such as soft - ware, healthcare and infrastructure continue to gener - ate deal flow, aggregate transaction volumes remain below long-term averages. Furthermore, pricing expectations among acquirers and vendors have yet to converge across all indus - tries, leading to extended negotiation timelines and, in certain instances, postponed or stalled processes. Market participants are undertaking more thorough commercial and financial due diligence reviews, indicative of a heightened sensitivity to risk. Conse - quently, while private equity continues to be a pivotal driver of Danish M&A activity, the speed and volume of transactions have not yet recovered to their historical peaks, notwithstanding substantial available capital and persistent deployment pressure. The technology and software sector remains a primary area of interest for PE sponsors. Danish technology companies are frequently distinguished by their deep technical expertise, scalable product architectures and proven ability to expand internationally. Goldman Sachs’ majority-stake acquisition in Trackunit, a glob - ally operating vertical SaaS business, in January 2025, reflects this dynamic, underscoring demand for spe - cialised software platforms underpinned by domestic innovation and broad international reach. The healthcare and life sciences space also remains a significant draw for investors, bolstered by Denmark’s well-established pharmaceutical ecosystem and robust medical research capabilities. Nordic Capital’s
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