Age Combined with Lack of Succession Drives Business Sales in CEE

26 February 2026

Age combined with the absence of succession remains the most important reason for selling a business in Central and Eastern Europe (CEE), accounting for 47% of all transactions. At the same time, entrepreneurs are exiting at a younger age: over the past decade, the average age of a selling business owner has declined from 61 to 59. 

These are key findings from the latest edition of the Dealsuite CEE M&A Monitor, based on input from 109 M&A advisory firms active in the CEE mid-market (companies with revenues between €1 million and €50 million).

Uncertainty Becomes Structural, Deal Activity Increases

Market uncertainty has become structural in the SME M&A landscape. Geopolitical developments, regulatory changes and tighter financing conditions continue to shape transaction dynamics. Nevertheless, dealmakers are adapting.

Earlier in 2025, the Dealsuite M&A Deal Terms Report showed that advisors increasingly structure transactions using deferred payments and other forms of risk-sharing to bridge valuation gaps and maintain deal momentum.

This adaptability translated into higher activity levels in H2-2025. Forty percent of advisors reported an increase in completed transactions compared to H1-2025. In parallel, mandate inflow rose significantly: 49% of advisory firms experienced an increase in assignments. This growing pipeline supports expectations of further transaction growth in the coming period.

Clear Shift Toward Smaller Deals

The second half of 2025 saw a noticeable redistribution of deal sizes. Transactions below €2.5 million accounted for 26% of all deals, up from 16% in H1-2025. Notably, 31% of transactions still exceeded €10 million, underlining continued activity in the upper mid-market.

Valuations Edge Up to 5.3 EBITDA

Valuations in the CEE mid-market increased moderately in H2-2025. The average EBITDA multiple rose from 5.2 to 5.3.

Most sector-specific multiples followed the overall upward trend. Healthcare & Pharmaceuticals (7.6) and Software Development (6.9) continue to command the highest valuations. However, modest declines were recorded in E-commerce & Webshops (5.3), IT Services (6.1), and Wholesale Trade (4.6).

Longer Sales Processes Reflect Caution

Transaction timelines remain extended. In H2-2025, 36% of sales processes lasted longer than 12 months. While 64% of transactions were completed within one year, prolonged due diligence and financing processes are increasingly common.

According to Floyd Plettenberg, CEO of Dealsuite:
“Longer lead times are not a sign of market cooling, but of prudence. In an environment where uncertainty has become structural, buyers take more time to thoroughly assess risks. This results in more extensive due diligence and more balanced decision-making, ultimately leading to longer transaction processes.”

Industrial & Manufacturing Expected to Lead in H1-2026

Looking ahead, sentiment among advisors is clearly positive. 88% of respondents are optimistic about the first half of 2026. Industrial & Manufacturing is expected to see the strongest increase in deal activity, followed by Software Development and Business Services.

Despite ongoing macroeconomic uncertainty, the CEE mid-market demonstrates resilience. Age-driven exits, adaptive deal structuring and a rising assignment pipeline indicate that M&A activity is expected to remain solid in the period ahead.

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