ABG Sundal Collier, a Norwegian investment bank, has conducted an in-depth analysis of 242 Nordic companies to assess their potential for long-term returns. The bank has identified significant valuation disparities in the market, coupled with the surplus of capital held by private equity firms that needs to be deployed. With a more favorable lending environment, the bank believes that several takeover bids could materialize.

In their analysis, ABG Sundal Collier has assumed that the companies would be acquired with a premium bid, allowing the new owner to increase leverage and use cash flow to pay off debts. Additionally, the bank anticipates that a private equity firm could exit in 2029 at the same multiple as the current valuation of the company.

Among the six companies deemed attractive for acquisition by private equity firms, Swedish game developer G5 Entertainment tops the list with a potential long-term return of 58%. Following closely are Norwegian electric vehicle charging infrastructure company Zaptec and Norwegian infrastructure company NRC. Sports betting provider Kambi is also seen as a target for private equity investors, given its potential internal rate of return (IRR) of 31%. The list of potential takeover targets also includes Norwegian conglomerate Bonheur and Luxembourg-based telecommunication operator Millicom, according to the bank’s analysis.

This analysis by ABG Sundal Collier sheds light on the opportunities present in the Nordic market for private equity firms seeking strategic acquisitions. The identified companies not only offer significant growth potential but also present attractive exit prospects for investors. As the market dynamics continue to evolve, it will be interesting to see how these potential takeover targets fare in the coming years.

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