Research papers
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Jelle Stuij
Download ReportThank you for taking the time to read this fourth edition of the CEE M&A Monitor. This report consolidates research performed by Dealsuite, the leading CEE and international platform for M&A transactions. It contains statistics and trends for the CEE M&A mid-market (enterprises with a revenue between €1 million and €50 million) over the second half of 2025. Dealsuite contacted 462 M&A advisory firms operating within the CEE M&A mid-market.
The aim of this study is to create periodic insights that improve the Central and Eastern European market’s transparency and to serve as a benchmark for M&A professionals. We are convinced that sharing information within our network leads to an improved quality and volume of deals.
Increased number of transactions in H2-2025
After years of volatility, uncertainty is the new normal in the M&A market. Dealmakers, particularly in the SME segment, are proving resilient and well-adapted to this structural change. To safeguard transaction progress in an unpredictable market environment, dealmakers are increasingly applying flexible deal structures. According to the Dealsuite M&A Deal Terms Report, there is a clear increase in the use of deferred payments and other forms of risk-sharing. In the first half of 2025, transaction volume remained stable compared to the end of 2024. In the second half of 2025, sentiment leaned slightly positive, with moderate increases outweighing reported declines.
Shift toward deals below 2.5 million reshapes deal distribution in H2-2025
In the second half of 2025, the deal mix shifted noticeably toward smaller transactions compared to the first half of the year. The share of deals below €2.5 million increased from 16% to 26% (+10 percentage points), reinforcing the dominance of smaller deal sizes. The €2.5–€5 million segment saw the biggest decline, dropping by 8 percentage points, while the €7.5–€10 million range also fell by 2 points. Despite the rise in smaller transactions, nearly one in three deals remains above €10 million.
Substantial increase in the expected number of M&A transactions
An increase or decrease in assignments at advisory firms provides insight into expected deal flow and market sentiment. After an upward trend on the number of assignements in the first half of the year, advisors stated the same trend for H2-2025. The results are shown in Figure 3 below.
These are assignments received in the second half of 2025 and (partly) converted into transactions during the same period. In some cases, these assignments will not lead to a deal until H1-2026, or will still be terminated.
In H2-2025, 39% of advisors reported no change in the number of transactions compared to H1-2025. 12% of advisors noticed a drop, while 49% of the advisors reported an increase in the number of assignments.
Industrial & Manufacturing is expected to drive transaction growth in H1-2026
To assess expected market developments, M&A advisors were asked which sectors they anticipate to have the largest increases or decreases in deal activity during the first half of 2026. Each respondent selected one sector. The results are presented in two charts, highlighting the three sectors most frequently cited for expected increases and decreases in transaction volumes.
When asked which sector is expected to see the largest increase in transaction volume, M&A advisors largely reaffirmed their H1-2025 views: Industrial & Manufacturing & Software Development remains the top pick, while Healthcare & Pharmaceuticals has been replaced by Business Services.
Expectations regarding declining transaction activity remain concentrated in a limited number of sectors. Advisors identified Automotive, Transportation & Logistics as the sector likely to see the largest decrease in deal volume in H1-2026, followed by Retail Trade and E-Commerce & Webshops.
The average EBITDA multiple increased to 5.3
EBITDA multiples serve as a widely accepted benchmark for business valuation, offering insight into what buyers are prepared to pay across different sectors. Dealsuite publishes semi-annual updates on average sector multiples, reflecting the typical EBITDA multiple paid for companies within each industry.
For this study, respondents provided their current observations of EBITDA multiples, informed by their adjusted market insights. These findings, shown in Figure 6, represent multiples based on the enterprise value (EV) of the acquired companies.
The average EBITDA multiple increased in H2-2025, rising from 5.2 to 5.3. Most sector multiples moved in line with the overall upward trend. However, the IT Services sector edged down slightly from 6.2 to 6.1, and the E-Commerce & Webshops sector dipped from 5.4 to 5.3. The Wholesale Trade sector also recorded a modest decline, slipping from 4.7 to 4.6.
Biggest spread reported in the Agri & Food sector
A business valuation is inherently company-specific and depends on a wide range of factors, including growth prospects, profitability, market position, and risk profile. A multiple, on its own, does not constitute a complete valuation methodology, but it serves as a useful cross-check, particularly when assessing comparable transactions in the near term.
Figure 7 illustrates the distribution of EBITDA multiples by sector. Some sectors encompass a wide range of companies, which explains the broader spreads compared with sectors composed of more similar businesses. The table shows the typical range of EBITDA multiples per sector, though individual transactions can occur at significantly higher or lower levels
To provide a representative view of a typical company within each sector, the range has been adjusted to exclude the two largest outliers per sector.
Significant difference in multiples for large and small companies
The size of a company plays a crucial role in determining multiples in business valuation. For small and medium-sized enterprises (SMEs) in CEE, it is essential to accurately quantify the impact of the Small Firm Premium. This is particularly relevant for businesses with an EBITDA ranging from €200,000 to €10,000,000.
The results of this monitor survey confirm again that companies with a low EBITDA have a lower multiple than companies with a high EBITDA. The influence of company size on EBITDA multiples paid is presented in Figure 8.
The difference in the EBITDA multiple between companies with a normalised EBITDA of €200,000 and €10,000,000 is 2.6 (4.1 compared to 6.7).
A comparison of EBITDA multiples between different countries highlights the advantages of cross-border deals. For example, it can be beneficial to buy a particular company abroad or to sell a company to an international buyer. Figure 9 shows the differences in EBITDA multiples between European markets.
36% of sales processes have a duration of over a year
The duration of a sale process is influenced by factors such as market complexity, the seller’s level of preparation, and financing pressure on buyers. The lead time of a transaction, from obtaining mandate to deal closing, can vary significantly.
The lead times of sale processes are distributed on a percentage basis across the categories shown in Figure 10. The majority (64%) of sales processes guided by an M&A advisor had a duration of less than 12 months.
Age is the most common reason for selling a business
A company sale can be initiated for a wide range of reasons. In some cases, age plays a role and there is no suitable succession, while in others the objective is to secure the financial value built up over time. In different situations, there may be a need for a new type of management to guide the company into its next phase of growth. In short, the underlying rationale varies by entrepreneur and circumstance.
M&A advisory firms were asked to identify the primary reasons for a company sale. The following reasons collectively total 100% and are presented in Figure 11.
The average age of a selling entrepreneur has decreased
Age (and lack of succession within the family or within the company) remain the main reasons for selling a business, at 47%. The advisors were also asked about the average age of a selling entrepreneur, and what the average age was 10 years ago. Over the past ten years (2015-2025), the average age has decreased from 61 to 59.
Positive assessment of H2-2025 and optimism for H1-2026
Assessing the performance and outlook of the CEE M&A mid-market is influenced by a range of factors, including seller willingness, access to financing, valuation expectations, and broader macroeconomic conditions. To capture both current sentiment and forward-looking expectations, M&A advisors were asked to assess the market in H2-2025 (retrospective) and provide their expectations for H1-2026 (projection).
The retrospective assessment of H2-2025 indicates a broadly positive market environment. A combined 71% of advisors assess the market as positive, while 29% express some degree of negative sentiment, predominantly slightly negative.
IX Outlook
Looking ahead to H1-2026, expectations improve markedly. 88% of advisors report optimistic expec- tations, indicating growing confidence in market conditions. Pessimistic views decline significantly compared to the H1-2025 assessment (from 30% to 12%), suggesting that advisors expect further normalization and strengthening of mid-market M&A activity over the coming period.
The majority of M&A transactions take place in the mid-market. This M&A Monitor uses the definition of a mid-market company as having a revenue between 1 and 50 million euros. The survey that was the basis for this M&A Monitor was sent to 462 M&A advisory firms. Considering their combined input, they represent an essential part of the M&A mid-market in CEE. Out of the total of 462 advisory firms, we received 109 responses (24% response rate).
Sources used:
This research was conducted by Jelle Stuij, and Roos Bijvoet. For further questions, please contact Jelle Stuij. For further information about Dealsuite, please contact Tim Lammar or Mihai Coca-Constantinescu.
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