European M&A Market Shows Uneven Recovery

March 13, 2025 – The European mid-market M&A landscape saw an uneven recovery in H2-2024, with the UK&I (+8%), Benelux (+6%), and CEE (+3%) driving growth, while France (-6%) and DACH (-3%) lagged. According to the latest European M&A Monitor by Dealsuite, investor confidence strengthened in growing markets, while weaker regions faced ongoing hesitation.

These insights are derived from the latest European M&A Monitor, a biannual survey conducted by Dealsuite, Europe’s leading platform for mid-market M&A transactions. The study consolidates firsthand transactional data from 2,708 deals completed in the second half of 2024, enriched with proprietary Dealsuite data and insights.

Valuations Reflect Market Disparities

The average European EBITDA multiple edged up from 5.2 to 5.25, with the United Kingdom and Ireland seeing the highest increase (+0.15 to 5.35), pointing to a favorable market for sellers, as buyers show a greater willingness to pay higher multiples. In contrast, Germany, Austria, and Switzerland (5.55, -0.05) and France (5.25, -0.1) experienced slight declines, signaling more cautious investor sentiment in these markets.

Varied Success Rates Influenced by Regional Dynamics

The success rate of M&A transactions across Europe serves as a crucial indicator of market strength and regional dynamics. On average, 68% of sell-side assignments result in a closed deal, with notable variations across the continent. The Netherlands stands out with an impressive 78% success rate, showcasing its effective M&A framework. Conversely, Central and Eastern Europe (CEE) records a lower success rate at 59%, highlighting the challenges specific to its market.

Floyd Plettenberg, CEO of Dealsuite, comments on these findings: "The variation in success rates across Europe reflects not only regional market characteristics but also underscores a significant evolution in M&A strategies over the past two decades. Twenty years ago, a substantial majority of closed deals were not meeting expectations. Today, 70% of deals are considered successful. This transformation illustrates how M&A has developed into a strategic instrument for growth and innovation. At Dealsuite, we contribute to this success by enhancing market access, reach, and transparency, enabling buyers and sellers to achieve better outcomes."

Positive Outlook for H1-2025

The European mid-market M&A outlook for H1-2025 remains positive, with 69% of advisors optimistic. Market activity is driven by a competitive landscape and a rise in the average EBITDA multiple in H2-2024. Optimism is strongest in the Netherlands (79%), while the UK & Ireland remains more cautious. Overall, growth is expected to continue.

For more details, visit www.dealsuite.com.