Entrepreneurs Sell Earlier as Exit Age Drops from 64 to 59 in Southern Europe

5 March 2026

A generational transition is increasingly shaping the M&A landscape in Southern Europe. Age is the primary driver behind business sales, accounting for 54% of all transactions, while the average age of selling entrepreneurs has fallen from 64 to 59 over the past decade. At the same time, deal activity has gained further momentum despite persistent market uncertainty, confirming that volatility has become the new normal in the region’s mid-market.

These findings are drawn from the latest edition of the Dealsuite Southern Europe M&A Monitor, based on input from M&A advisory firms active in the lower and mid-market segment in Italy, Spain, Portugal and Greece.

Uncertainty as a Structural Factor, Deal Activity Rises

Market uncertainty continues to shape transaction dynamics, yet advisors report clear signs of resilience and adaptability. According to the Dealsuite Deal Terms Monitor, dealmakers are increasingly employing creative transaction structures, including a greater use of deferred payments and other risk-sharing mechanisms, to bridge valuation gaps and facilitate deal completion.

This pragmatic approach is reflected in activity levels during H2-2025. A majority of 52% of advisors reported an increase in the number of completed transactions compared to H1-2025, while 32% observed stable activity and only 16% reported a decline.

In addition, 62% of advisors experienced an increase in new M&A mandates, the strongest reported rise among all regions surveyed by Dealsuite. This expanding pipeline suggests that transaction activity is likely to remain robust in the coming period.

Shift Toward Larger Deal Sizes

Compared to the first half of 2025, H2-2025 saw a clear increase in larger transactions. The share of deals below €2.5 million declined from 26% to 18%, indicating a growing proportion of higher-value transactions. Notably, 37% of all transactions exceeded €7.5 million in deal value. 

Valuations Increase to 5.4 EBITDA

Valuations in Southern Europe edged up moderately in H2-2025. The average EBITDA multiple increased from 5.3 to 5.4, in line with valuation levels observed in the Nordics and the UK & Ireland and higher than the average multiples of the CEE region, France, and the Netherlands.

Most sector-specific multiples either increased slightly or remained stable. However, a pronounced valuation gap persists between smaller and larger companies. The difference in EBITDA multiples between companies with a normalised EBITDA of €200,000 and those generating €10 million amounts to 3.1 multiple points. Smaller businesses face a higher perceived risk of not achieving projected cash flows, resulting in more conservative pricing.

28% of Deals Experience Timelines Beyond One Year

Although transaction activity is increasing, deal timelines remain extended. In H2-2025, 28% of sales processes lasted longer than 12 months, reflecting thorough due diligence procedures and careful financing considerations.

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.”

IT Services to Drive Growth in H1-2026

Looking ahead to the first half of 2026, sentiment among advisors is broadly positive. 84% express optimism regarding market developments, while only 16% adopt a more cautious stance.

IT Services is expected to lead transaction growth, followed by Business Services and Industrial & Manufacturing. In contrast, lower levels of activity are anticipated in the Construction & Engineering sector.

Entrepreneurs Exit Earlier, Generational Transfer Gains Momentum

Beyond market dynamics, demographic developments continue to influence transaction volumes. Age is cited as the most common reason for selling a business (54% of transactions), followed by securing accumulated wealth through partial or full cash-out (19%).

Notably, the average age of selling entrepreneurs has declined from 64 to 59 over the past decade, underlining an accelerating generational shift within the Southern European SME landscape.

Despite ongoing macroeconomic uncertainty, the region’s mid-market demonstrates resilience. Rising deal activity, increasing mandates, stable-to-improving valuations and strong forward-looking sentiment indicate that M&A momentum is expected to continue into 2026.