Deal activity is currently lagging significant behind of 2019, due to the covid-19 pandemic. This far into the third quarter 2020, we have, however, observed a bounceback of the Norwegian M&A-activity, mainly driven by TMT-assets and we also continue to observe divestment activity among corporations in order to invest in new growth opportunities.
“In 2020’s third quarter, much of the foreign deal activity into Norway seems to have rebound.”
We expect the incentives for continuing M&A-deal activity will remain relatively strong in the Norwegian market within such sectors as TMT and industrials, but with growing uncertainties about a possible covid-19 bounceback.
Still, capital continues to be inexpensive and plentiful. A lot of cash is still waiting to be invested and, despite the fact that we have seen an increasing number of private equity exits over the past three to four years, there still seems to be an exit overhang in some private equity sponsor’s portfolios approaching end of lifetime for the funds holding such investments.
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Contact
Ole K. Aabø-Evensen
(+47) 477 81 840
oka@aaboevensen.com