Here at Laurence Simons, we like to offer insights into the areas we have marked on our radar as upcoming legal hotspots. One that has particularly interested us recently is Finland.
Although Finland’s economy is still recovering from the downturn, it is showing marked improvement month by month. There has been no increase in insolvency assignments which indicates that companies are remaining profitable and despite the country still being in recession – which means that there is no natural need for growth – it is predicted that the market will become healthier next year. Recently, Prime Minister Alexander Stubb lost to Centre party candidate, Juha Sipila, yet the general feeling is that it is likely that corporate taxation rates will remain low, encouraging even further outside investment.
So what are the hot markets in the country itself?
Well currently, healthcare is rapidly growing in potential due to both an ageing population and the privatisation of part of the – currently – public healthcare service. This has attracted both a high number of private equity investors and legal specialists who are working on the structural changes involved with this process. On top of this, there is much activity within the energy market, and legal teams are busy working on huge projects ranging from biofuels and nuclear power plants to windmills. There is also an increasing amount of consolidation in the traditional electricity market where specialists are being snapped up to deal with transactional and regulatory issues.
In the longer term, it is predicted that industry giants such as Nokia will revitalise the economy by developing an infrastructure and network of suppliers, co-operation partners, service providers and activities, including transactions. Commenting on Nokia’s recent merger with Alcatel-Lucent, two managing partners at Borenius, Juha Koponen and Jari Vikiö, commented that: “It sends out a positive signal that Finnish companies should invest in times like these.”
See you there!