DENMARK Law and Practice Contributed by: Dan Moalem, Jakob Skafte-Pedersen, Poul Guo and Thomas Enevoldsen, Moalem Weitemeyer
Moalem Weitemeyer Amaliegade 3–5 DK-1256 Copenhagen Denmark
Tel: +45 7070 1505 Fax: +45 7070 1506 Email: jakob.skafte-pedersen@moalemweitemeyer.com Web: moalemweitemeyer.com/home
1. Transaction Activity 1.1 Private Equity Transactions and M&A Deals in General Selective Recovery and Increased Strategic Focus Private equity and M&A activity in Denmark remained subdued in 2024 and into 2025, with many process - es delayed, paused, or never launched. While some recovery is visible in specific areas, overall market activity remains below historic norms. Investors are more selective and focus primarily on resilient busi - nesses with solid fundamentals. Only a limited number of structured processes have been completed, and most activity has consisted of opportunistic add-on acquisitions, occasional carve-outs, and selected secondary buyouts. The Danish M&A market continues to be dominated by private transactions, with very few public deals seen in 2024. Deal terms are generally more buyer-friendly, often involving extended diligence periods, earn-outs, vendor financing, and other holdback mechanisms. There is also a clear trend towards bilateral deals rather than large auction processes. In cases where auctions do occur, the terms typically remain seller- friendly. 1.2 Market Activity and Impact of Macro- Economic Factors Private equity activity in Denmark remains at a low level. This is contrary to the general market expec - tations in Denmark (and in Europe) at end of 2024, where increased activity was expected.
However, general geopolitical uncertainty and the question of introduction of tariffs affecting global trade/trade patterns have created increased volatil - ity. Buyers are more risk averse and conservative in valuations affecting the expectation that the valuation gap between sellers and buyers would increasingly be levelled out in 2025, also given decreasing inter - est rates. Combined with a cautious approach among financial sponsors, these conditions have kept overall activity below expectations, with main activity being within add-on acquisitions and small and mid-market transactions. The volatility and gap in price expectations has instead increased the use of continuation vehicles. Sector Trends: Healthcare, Tech, Infrastructure and Defence In 2025, private equity interests have mainly focused on sectors seen as structurally strong or offering long- term growth. Nevertheless, several processes have stalled or remain on hold due to geopolitical uncer - tainty and limited willingness to make long-term com - mitments. The healthcare and pharmaceutical sectors continue to draw steady investor attention, supported by demo - graphic developments and ongoing innovation. Infra - structure and energy transition assets – particularly within logistics and renewables – remain key areas of interest due to their potential to deliver stable returns in uncertain market conditions. Technology and soft - ware also continue to attract investment, especially in connection with buy-and-build strategies. Addition - ally, there has been a growing focus on the defence
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