Weathering the Storm: A Difference-in-Differences Study on Nordic Private Equity Performance and M&A Activity During the Covid-19 Pandemic

Sammanfattning: Using financial data for Nordic private equity-backed companies, this paper investigates the performance and M&A activity of private equity-owned firms during the covid-19 pandemic. The results show that sales, investments and the number of add-on acquisitions increased significantly for private equity-owned firms compared to their peers in 2020 and 2021. Robustness tests confirm the results for investments and the number of add-on acquisitions, but not for sales. Additionally, investments and private equity ownership increased the likelihood of purchasing an add-on acquisition during the covid-19 pandemic. This paper provides insight into how private equity-backed firms perform in times of crisis and whether private equity ownership contributes to financial stability. This study's findings have implications for PE investors since the results shed light on the importance of agility and flexibility in responding to unpredictable events and market conditions.