Swedish Entrepreneurs Face Multi-Billion Losses Due to Inexperienced Advisors Amidst Increasing Acquisition Complexity

Swedish entrepreneurs are losing billions annually by partnering with advisors who lack the experience and networks to effectively manage business sales, according to Tomas Almgren, Managing Partner at Clearwater. Despite an active M&A market with interest from industrial and financial buyers, many entrepreneurs miss out on higher valuations and long-term strategic benefits because their advisors fail to engage international strategic buyers. Clearwater, which conducts about 250 transactions annually across Europe, often achieves valuations 30-50% higher than smaller advisors or solo negotiations by leveraging extensive international connections. Almgren emphasizes that successful deals combine strong sale prices with suitable strategic matches that provide companies with international networks, capital, and digital platforms, enhancing future growth potential.

Adding to the advisory challenge is the growing complexity in corporate acquisitions, where technical and environmental risks have become critical. Bram Van der Stocken of WSP highlights that environmental requirements and technical deficiencies can significantly affect business valuations. WSP, a global engineering consultancy with 3,800 experts in Sweden, integrates technical and business expertise to offer comprehensive due diligence services—covering Environmental Due Diligence (EDD), Technical Due Diligence (TDD), and ESG assessments—to identify risks early. Environmental expert Susanna Renmarker stresses that many companies overlook these risks, leading to missed opportunities for critical investigations, such as soil and groundwater testing. WSP's international presence across 50 countries allows rapid deployment of specialized knowledge tailored to transactions, ensuring well-informed decisions in increasingly complex investment environments.

Together, these insights underscore a crucial need for Swedish entrepreneurs and companies to seek experienced, well-connected advisors who combine robust technical and business risk management capabilities to maximize transaction value and sustain long-term growth.