More cross-border deals anticipated in Europe in 2025

The majority of sellers in the Nordics indicated that they are open to an international buyer and according to advisors 57% of their clients are welcoming to a foreign buyer, according to Dealsuite Research.  So what’s driving growth in international M&A in Europe?

Why Europe’s international M&A is tipped to grow in 2025

With controlled inflation, improving economic health and interest rates starting to fall, it’s expected that international expansion within Europe will be a focus of many businesses. Fast-paced technological change, available funding for deals and pressure to enhance capabilities with emerging technology will drive M&A as companies seize opportunities for growth. 

Economic and political stability

While global political uncertainty continues into 2025, businesses will focus on fundamental company performance and seek international expansion within the EU markets, where business models are more aligned.

Increasingly international focus of business

In the tech, defence and health sectors, companies are pursuing international markets and partnerships in 2025. Fintech is a dynamic sector in the Nordic region, where a supportive regulatory environment fosters innovation.

One example is Doconomy, founded in Sweden in 2018, a fintech company that provides banks with innovative tools to drive sustainability by measuring and educating on climate and environmental impact and financial wellbeing, by enabling goal-based saving.

In 2023 Doconomy acquired Stockholm-based fintech company Dreams Technology and secured series B funding in May 2024. In 2025, the company is anticipated to expand internationally, enhance its product suite and drive broader engagement and adoption in 2025.

Competitive edge in digitalization, AI, medical equipment and public efficiency

A culture of innovation positions Nordic countries as leaders in scientific research and technological advancement, with a growing number of startups pushing the boundaries of healthcare technology. Partnerships between academia, industry and government bodies support a collaborative approach to innovation, which will extend to cross-border collaboration in 2025. 

Cybersecurity, enhanced data analytics and better telehealth services drive rapid adoption of technology, integrating AI capabilities to improve patient outcomes and to take over manual and repetitive tasks, allowing healthcare providers to focus on meaningful patient interactions.

Automation and AI integration transform companies

Increased automation and AI will continue to transform business operations. Organizations will continue to look to acquire this expertise and technology through M&A, particularly in SAAS,  ICT and defence sectors. 

Expected surge in private equity exits

Many private equity companies hold ageing investments and significant dry powder, and are ready to act now that economic conditions are improving. With better access to capital from both debt and equity, CEOs will look to position their companies for the future.

Alignment of price expectations between buyers and sellers

When buyers seek exclusivity before committing to the expense and time investment of the sale process, alignment on price is key. Regularly confirming the offer price during due diligence ensures the seller is not locked out of the wider buyer market for too long, and mitigates doubt the seller may have regarding the buyer’s ongoing conviction.

Secure a deal and minimize lock-up in the M&A process with a well-organized virtual data room

In a cross-border transaction, time is critical. Once a buyer is interested and confirms an offer, sellers can minimize the exclusivity period with an intuitive, well-organized data room and seamless Q&A experience. Ansarada’s deal room is designed to streamline the complexity of selling a company.