Swedish M&A Due Diligence | SIE Files

The SIE file — why it changes the engagement

SIE (Standard Import Export) has been Sweden's accounting interchange standard since 1992, created by a non-profit group of Swedish software vendors and professional bodies. Effectively every accounting package sold in Sweden supports it.

SIE4 — the file we ask for first

Full transactions and vouchers for the fiscal year. A complete audit trail, not a period summary. This is the single most useful file on a Swedish target and almost every ledger system can produce it.

SIE5 — the XML revision

Released in 2018 to make the standard internationally readable. We handle it where the target's system emits it, though SIE4 remains far more common in practice.

SIE1–SIE3 — the summary types

Year-end balances, period balances and object balances respectively. Useful for a quick orientation, but they cannot support voucher-level diligence questions.

What that means in practice

On many offshore engagements, week one goes to rebuilding a trial balance from whatever the seller could export. A Swedish target should not need that step. One SIE4 file carries the monthly P&L, balance sheet, account-level movement and voucher-level support in a single structured export.

The practical consequences: the seller's controller is not tied up producing custom extracts, more of your budget goes to analysis rather than data entry, and when a buyer later asks “what sits behind this cost line?” the answer is already in the file rather than requiring a fresh request.

It also means our first-cut databook lands faster on a Swedish deal than on a comparable UK or US mandate.

K2, K3 and IFRS — where the differences bite

A buyer underwriting on an IFRS or K3 basis cannot read K2 numbers at face value. These are the divergences that actually move EBITDA and net debt.

Which standard applies

Every Swedish limited company reports under K2, K3 or IFRS. K2 is the simplified regime for smaller companies; K3 is the main standard; IFRS applies to listed groups. Most mid-market targets you look at will be K2 or K3.

Capitalised development costs

K3 permits capitalisation of development costs in consolidated accounts where the criteria are met, but not in single-entity statements. K2 prohibits it outright. On a software or product target this single difference can move reported EBITDA materially.

Goodwill

K3 requires goodwill to be amortised — unlike IFRS, where it is tested for impairment. A K3 target will therefore show an amortisation charge that an IFRS-basis buyer will normally add back.

P&L format

K3 allows either cost-by-function or cost-by-nature presentation; K2 permits only one. Comparing two Swedish targets often means restating one of them before the numbers mean anything side by side.

Leases

K3 treatment differs from IFRS 16. Operating leases that a buyer would capitalise under IFRS sit off balance sheet under K3, which affects both EBITDA and net debt.

Why it matters in diligence

A buyer underwriting on an IFRS or K3 basis cannot read K2 numbers at face value. We bridge reported figures onto the basis you are underwriting, and show the bridge rather than just the answer.

Ledger systems we work with

System	Where you see it
Fortnox	The dominant cloud ledger for Swedish SMEs. Clean SIE4 export.
Visma	Broad presence across Nordic SMEs and mid-market, including eEkonomi and Administration.
Bokio	Popular with smaller and founder-led businesses; acquired by Visma.
Mid-market ERP	Microsoft Dynamics 365 and IFS both support Swedish SIE export natively.

In every case we take the export the system natively produces. If a target runs something less common, send a sample export and we will confirm we can read it before you commit to anything.

Statutory reporting

Swedish limited companies file an årsredovisning with Bolagsverket. We reconcile those filed statutory accounts back to management reporting as a standard early step, because that reconciliation is almost always where a buyer's first substantive questions land — particularly where the statutory accounts are prepared on a different basis or with different cut-offs from the monthly management pack.

Where a target has an auditor, we work alongside them rather than around them.

The Swedish M&A market

The Nordics generate roughly 12–15% of European private equity deal volume by count, from a combined population of about 27 million — a persistently disproportionate share.
Sweden is the most active Nordic PE market, underpinned by technology, industrials, healthcare, consumer brands and export-oriented mid-market companies.
Stockholm hosts EQT (the largest Nordic-headquartered investor by enterprise value) and Nordic Capital, alongside mid-market houses including IK Partners, Adelis, Segulah and Axcel.
Nordic Capital closed its second dedicated mid-market fund, Evolution II, at a €2bn hard cap in December 2024 — capital specifically targeted at the deal size where outsourced diligence is common.
A deep base of owner-led businesses reaching succession means consistent lower-mid-market transaction flow, which is exactly where in-house diligence teams do not exist.

Language and currency

Swedish source data. Account names, voucher narrative and supporting documents are processed in Swedish. Nothing needs translating before it reaches us.
English deliverables. Reports and databooks are issued in English by default, or bilingual where the seller's team needs to review them too.
SEK reporting. We handle SEK-reported entities with EUR or USD reporting lines, including translation effects on comparatives.
FX in the peg. Where working capital is SEK-denominated but the peg is agreed in EUR or USD, we show the translation effect separately rather than burying it.

How to test us before you commit

You should not take a capability claim on trust, and we would rather be checked early than oversell and disappoint on a live deal.

Send a sample or anonymised SIE export. We will return the derived monthly P&L, balance sheet and an account-level cut — before any engagement letter, at no cost.
Ask us the accounting question. Put a K2-versus-K3 treatment question to us on the call and judge the answer on its merits.
Start with one deliverable. Our Fixed-Project model carries no minimum commitment, so a first databook is a low-risk way to see the standard.
Where we are honest about limits. Sweden is our priority market and we have built our data handling around the SIE standard. Our transaction experience is Big 4-trained and cross-border; where a mandate needs a Swedish statutory signatory or a local audit opinion, we work alongside one rather than claiming to replace it.

Frequently asked questions

Can you work directly from an SIE file?

Yes — it is the file we ask for first. SIE4 carries full transaction and voucher detail, so the monthly P&L, balance sheet, account detail and voucher support all come from one structured export rather than from custom extracts the seller’s controller has to build.

Do you handle Swedish-language ledgers?

Yes. Account names, voucher narrative and supporting documentation are processed in Swedish. Deliverables are issued in English by default, or bilingual on request.

Do you understand where K2 and K3 diverge?

Yes — principally on capitalised development costs, goodwill amortisation, lease treatment and P&L presentation format. We bridge reported figures onto the basis the buyer is underwriting and show the bridge.

What about the statutory accounts?

We reconcile the årsredovisning filed with Bolagsverket back to management reporting. That reconciliation is usually where a buyer's first hard questions land.

What are your working hours for Swedish clients?

We cover the full CET business day, so a Stockholm deal team gets same-day turnaround rather than overnight lag.

Swedish target on your desk?

Send the SIE4 export. We will confirm what we can derive from it and the timeline, within one business day.

Book a consult See a real databook

Or email abhishek.bhandari@zionadvisor.com directly.

Swedish Deal Support