European M&A Valuation Gap Closes

Regional valuation gaps in European mid-market M&A are beginning to narrow as cross-border dealmaking intensifies. EBITDA multiples across the continent are gradually converging, with traditionally higher-valued markets seeing modest declines while lower-multiple regions record steady increases. The trend highlights a more transparent and international M&A environment, where broader access to deal data and cross-border investor interest are reshaping how businesses are valued.

Demographic factors continue to play a decisive role in European business sales. Age combined with the absence of succession remains the most common trigger for a transaction, accounting for 46% of all deals. At the same time, entrepreneurs are choosing to exit earlier: over the past decade, the average age of selling business owners has fallen from 61 to 57, pointing to a gradual generational shift in the European mid-market.

These are key findings from the latest edition of the Dealsuite European M&A Monitor, based on firsthand input from 848 M&A advisory firms active in the European mid-market (companies with revenues between €1 million and €200 million).

Growing Pipeline Points to Continued Deal Activity

Pipeline indicators are also supportive. In H2-2025, 47% of advisors reported an increase in the number of assignments, while 38% saw stable levels and 15% reported a decline.

A growing number of assignments typically translates into additional completed transactions in the months that follow, supporting continued European mid-market deal activity in the near term.

Regional EBITDA Multiples Move Closer Together

While the European average EBITDA multiple stabilised at 5.3, regional valuation levels have begun to converge.

The highest regional multiples have edged down slightly, while regions with lower multiples have recorded modest increases. DACH, still the highest-valued region, declined slightly from 5.55 to 5.5, while the Netherlands increased from 4.9 to 5.0. Meanwhile, UK & Ireland, Southern Europe and Central & Eastern Europe saw small increases, France remained stable, and the Nordics experienced a minor decline from 5.5 to 5.4.

As a result, valuation differences between European regions are narrowing. This convergence reflects the increasingly international nature of mid-market M&A, with buyers and investors more actively pursuing cross-border opportunities. Improved access to transaction data and broader valuation benchmarks also contribute to a more consistent pricing environment across markets.

At the same time, company size continues to play a major role in valuations. Businesses with EBITDA of €200,000 trade at an average multiple of around 3.9, while companies with EBITDA of €10 million achieve multiples of approximately 7.2, reflecting the lower perceived risk and greater scalability of larger companies.

Deal Processes Often Extend Beyond One Year

Transaction timelines in the European mid-market vary considerably depending on market conditions, preparation of the seller and the complexity of the transaction. A substantial share of deals require a longer execution period.

Across Europe, 66% of transactions are completed within 12 months, while 34% take longer than one year from mandate to closing. The six-to-twelve-month timeframe remains the most common duration, indicating that a typical SME transaction still takes around a year to complete.

Regional differences are clearly visible. Southern Europe, the Nordics and the UK & Ireland report the shortest deal timelines, with a larger share of transactions closing within six months. In contrast, France and the DACH region show longer deal processes, with DACH recording the highest proportion of transactions exceeding 18 months.

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.”

Business Services and Industrial Sectors Expected to Lead in 2026

Looking ahead, sentiment among European dealmakers remains clearly positive. 69% of advisors express optimism for the first half of 2026, reflecting confidence in the resilience of the European mid-market.

Business Services is expected to drive transaction growth in the first half of 2026, followed by Industrial & Manufacturing and Software Development. 

Despite ongoing macroeconomic uncertainty, the European mid-market demonstrates structural resilience. Age-related succession challenges, creative deal structuring and a growing assignment pipeline are expected to continue supporting M&A activity across Europe in the period ahead.