If you own a Swedish company with SEK 50–500 million in revenue within services, IT or industrials, you have very likely already been contacted by a PE fund — or by a portfolio company looking for add-on acquisitions. That is not a coincidence. It is a strategy.
In 2025, 82 per cent of all PE transactions in the Nordics were add-ons, according to data from PitchBook and White & Case. That is significantly higher than the global average of 73 per cent and means that the vast majority of Nordic PE deals are not about acquiring a new platform — but about building on an existing one.
in Nordic PE 2025
in Nordics 2025
seeking deployment
Why buy-and-build dominates
The logic is simple: PE funds create value by combining companies. A platform with SEK 200 million in revenue that completes three add-ons of SEK 50 million each does not just become larger — it becomes worth more per unit of profit. Economies of scale, cross-selling and a broader offering justify a higher multiple at exit.
The sectors dominating this activity in the Nordics reflect where fragmented markets with consolidation opportunities exist: services (47 per cent of all add-ons), TMT (18 per cent) and industrials (15 per cent).
The new normal
The trend has accelerated markedly in recent years. Nordic PE investments reached EUR 66 billion in 2025 — up 17 per cent from 2024 and the region's second-highest level ever. EQT, one of the Nordics' largest PE firms, has announced plans to more than double its European investments to EUR 250 billion over the next five years.
What does it mean for you?
If you own a company operating in a fragmented industry, there are in practice two roles you can play in this trend:
Scenario 1: Your company as a platform
If you have a strong brand, well-established processes, an experienced management team and revenue north of SEK 150–200 million, your company may be attractive as a platform. This means a PE fund acquires your company as a base from which to make further acquisitions within your sector. You typically sell 60–80 per cent initially, roll the remaining equity and participate in value creation during the holding period.
The advantage: you typically receive a higher entry multiple (8–12x EBITDA for quality businesses) and the opportunity to realise a "second exit" at an even higher multiple 4–5 years later.
Scenario 2: Your company as an add-on
If you run a smaller company (SEK 30–100 million) with a strong niche position, you may be an attractive add-on target. In this case, you are acquired by a portfolio company rather than directly by the fund. Multiples are generally lower (5–8x) but the process is often faster, the buyer has clear industry knowledge and integration is supported by the fund's resources.
The risk: you enter a process where the buyer has completed ten similar acquisitions and knows exactly which weaknesses to look for. Preparation and advisory become critical.
In a market where 4 out of 5 PE deals are add-ons, the question is not whether you will be approached — but whether you are prepared when it happens.
How to position yourself
- Understand your role. Are you a potential platform or an add-on target? The answer dictates how you should prepare the company and which buyers to engage with.
- Document the growth potential. PE buyers pay for the future. A clear plan with identified acquisition candidates, new markets or products significantly raises the valuation.
- Build the management team. PE funds invest in teams, not individuals. If you are CEO, head of sales and CFO in one person, you have a problem — regardless of how good you are.
- Choose the right timing. With USD 1.7 trillion in global uninvested PE capital and a Nordic market that invested 17 per cent more in 2025, competition for quality companies is high. That drives up prices — but only for those who are ready.
A structural change
Buy-and-build is not a trend that will fade. It is driven by fundamental factors: PE funds' need to generate returns in a maturing market, access to cheaper financing and the fact that the Nordics' fragmented service sector offers hundreds of consolidation opportunities.
For the business owner who understands the dynamics and prepares in time, this may be the most favourable market in a decade. For those who do not, there is a risk of being acquired on terms dictated by someone else.
Linus Hogbäck
Linus has over five years of experience in the financial sector, primarily as an investor, with a background from Odevo, Fidelio Capital, eEquity and Oaklins.