Our new partners see opportunities for this year – advance planning helps companies overcome challenges

Minna and Karlo are excited about their new roles as partners. They both have worked at Castrén & Snellman for years and been involved in developing the activities and service offerings of different teams. Along with the new role, Minna and Karlo will also have new development tasks, as they get to plunge into the long-term development of the entire firm and act as strategical partners to our clients even more than before.

‘I look forward to developing our business comprehensively across our services. Our firm has the unbeatable advantage of offering our clients all the business law services they need’, Minna says.

‘Right now, there are several interesting mergers and acquisitions and private equity investments as well as internal development initiatives under way. I am happy that I get to participate in our clients’ most significant projects more intensively’, Karlo says.

Advance planning helps companies adapt to changes in the market

At the end of last year, market activity decreased after a busy period. This decrease was due to, among other things, inflation, increasing interest rates, the consequences of the war in Ukraine for example in the real estate and construction industry and the general decline in the valuation of listed companies, particularly in the technology sector, which was also reflected in the unlisted stock market. Minna and Karlo are still confident that anticipating the changes in the market and the ability to adapt to these changes will help companies succeed even in more challenging times.

‘When the market environment is uncertain, private equity investors can succeed by being creative and making innovative transaction strategies. Private equity investors have proven their ability to create added value for example with public-to-private transactions of listed companies, by leveraging buy-and-build strategies based on several consecutive or even concurrent transactions and by acquiring businesses through carve-out arrangements. Carve-out arrangements will become more popular as companies streamline their operations and divest businesses that are not part of their core strategy’, Karlo says.

The significance of advance planning and adaptability is also evident in financing.

‘It is possible that this year some companies will need to restructure their loans and to adjust their financial position to meet the challenges of modern economy. Companies should anticipate future market changes and their own economic development. We recommended having an open dialogue with financiers.’

Market activity will likely increase this year

Although there has been some uncertainty in the market lately, the coming spring looks to be very active for Castrén & Snellman. Minna and Karlo are positive about market activity increasing this year.

‘If the interest rates and inflation even out and the stock exchange starts to liven up, the market may become very active. ‘The transactions market is already showing signs of this and I believe there will be lots of M&A activity this year’, Karlo says.

The partners anticipate that sustainability and the green transition will continue to have a strong presence in the market: it is likely that there will be more investments in energy and infrastructure companies, and investments in renewable energy sources in particular will grow in popularity.

‘Sustainable financing projects and companies will succeed even in challenging times’, Minna summarises.