DENMARK Law and Practice Contributed by: Simon Milthers, Thomas Bøgedal Kristiansen, Mikkel Friis Rossa and Emil Steenberg, Bech-Bruun
Bech-Brunn Gdanskgade 18 2150 Copenhagen Denmark Tel: +45 72 27 00 00
Email: info@bechbruun.com Web: www.bechbruun.com/en
1. Market Trends 1.1 Technology M&A Market
Valuation multiples for tech companies remain high, driven by demand for innovative solutions in fintech, healthtech, and software as a service (SaaS). Warranty and indemnity (W&I) insurance continues to play a crucial role in M&A transactions, providing parties with greater security and protection as deal structures become more sophisticated. ESG factors have become central to technology M&A transactions, as investors increasingly focus on sus- tainability and responsible business practices. 2. Establishing a New Company, Early-Stage Financing and Venture Capital Financing of a New Technology Company 2.1 Establishing a New Company When Danish founders decide to incorporate their business, they commonly choose a Danish limited liability company. This incorporation process is quick and electronic, often finalised within 24 hours once the formation documents have been prepared. There are two types of limited liability companies in Denmark: • a public limited liability company ( aktieselskab or A/S), which requires a minimum capital of DKK400,000 (approximately EUR53,560); and • a private limited liability company ( anpartselskab or ApS), which requires a minimum capital of DKK20,000 (approximately EUR2,680).
During the past year, the technology M&A market in Denmark has maintained its position as a leading sector in terms of M&A deal activity. Despite ongoing geopolitical tensions and economic uncertainty, the Danish M&A market has demonstrated remarkable resilience. Looking ahead, the outlook for Danish technology M&A is bright with continued growth and innovation on the horizon. Expectations for 2026 are high, with many transactions in the pipeline across sectors. 1.2 Key Trends During the past year, M&A activity in the Danish tech- nology sector has surged, especially among Danish tech start-ups. Larger tech companies and private equity firms are increasingly acquiring innovative start-ups in fintech, healthtech and green technol- ogy. Cross-border transactions have increased, with foreign investors attracted to Denmark’s innovative tech ecosystem. Private equity firms and venture capital funds as well as family offices are actively acquiring companies and providing growth capital in the Danish technol- ogy M&A market. This trend is expected to continue with high-growth opportunities. New regulations on AI and cybersecurity compel com- panies to adapt to new requirements and enhance their technological capabilities. The rise in cybersecu- rity importance has increased M&A activity involving cybersecurity assets, and the ongoing AI revolution is also driving M&A activity.
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