17 August 2026

In nearly half of all CEE M&A transaction processes (47%), advisors report that sellers' valuation expectations are too high, a gap that averages 28% and breaks the deal in 35% of those cases. Deal activity is polarising too: the largest deals (above €10 million) and the smallest (below €2.5 million) both gained share, while the two brackets in between eased back.

These are among the key findings of the latest edition of the Dealsuite CEE M&A Monitor, which tracks the CEE mid-market every six months. 

A Persistent Gap, Now Quantified

Dealsuite has flagged unrealistic seller expectations as the top reason deals collapse in the CEE market for years. This edition is the first to measure the scale directly, how often it happens, how wide the gap runs, and how often it kills the deal.

Rather than walk away, advisors are increasingly structuring around the gap. Deferred payments and other forms of risk-sharing between buyer and seller are being used more often to keep transactions on track, according to Dealsuite's Deal Terms Report, a sign that the market is adapting to the gap rather than letting it routinely kill deals.

Floyd Plettenberg, CEO of Dealsuite, says the numbers finally put a figure on something advisors have felt for years: "A deal doesn't usually fall apart because a buyer walks away for no reason. It falls apart because the seller is anchored to a number the market won't pay. Now we have measured that gap, and how often it actually breaks a deal. This is the kind of transparency that avoids dealbreakers and helps close more deals."

IT and Healthcare Overtake Software as Buyer Interest Leaders 

Buyer interest is strengthening in parts of the CEE mid-market, even as the overall average remained similar at 5.3 serious buyers per company for sale in H1-2026. IT Services, Healthcare & Pharmaceuticals and Software Development were already the three most contested sectors a year ago, but the order has flipped: IT Services saw by far the sharpest increase, up 1.6 points to 8.2, and Healthcare & Pharmaceuticals rose to 7.5 (up 0.6), pushing both past Software Development, which eased slightly to 7.3 after leading the group a year earlier. Industrial & Manufacturing also gained (6.5, up 0.5).

E-Commerce & Webshops saw the steepest pullback, with interest falling from 6.3 to 5.4, while Construction & Engineering (5.3, down 0.5) and Agri & Food (4.5, down 0.4) also cooled.

As Diana Nikolaeva, Partner at EY Parthenon, explains: "We expect buyers to remain most active in industrials, technology, AI-enabled services and defence-related sectors in H2-2026. Interest is being fueled by nearshoring, operational efficiency initiatives, accelerating AI adoption, energy-transition investments and Europe's push to strengthen supply-chain resilience and strategic independence."

Overall transaction volume held up well: 41% of advisors reported an increase in completed deals compared to H2-2025, against 24% reporting a decline, with the remainder stable.

Average EBITDA Multiple Holds at 5.3

Valuations across the CEE mid-market were broadly stable, with the average EBITDA multiple unchanged at 5.3. Healthcare & Pharmaceuticals and Construction & Engineering posted the largest gains, both up 0.2, while Business Services and E-Commerce & Webshops were the only sectors to ease, each down 0.2.

Company size remains a decisive factor in valuation: multiples for smaller businesses (€200,000 EBITDA) held at 4.0, while larger companies (€10 million EBITDA) traded at 6.6, a gap of 2.6 points, reflecting the so-called Small Firm Premium applied to compensate for the higher risk profile of smaller businesses. CEE also commands the highest EBITDA multiples in Europe for Agri & Food and Media & Communication.

Sentiment Hits a Fresh High as E-Commerce Tops the Decline List

Looking ahead, sentiment keeps strengthening: 92% of advisors describe themselves as optimistic about H2-2026.

As Jan Slaby, Partner at ECOVIS, explains: "We are very positive about the outlook for H2-2026. We see a number of new investors, including PE funds and family offices, and there are a lot of companies with unresolved succession issues. We also see several consolidation stories across various industries. Companies and investors have gotten used to having several conflicts nearby."

Advisors were also asked which sectors they expect to see the biggest changes in deal activity in H2-2026. E-Commerce & Webshops now tops the list of sectors expected to decline, overtaking Automotive, Transportation & Logistics, which led that ranking last edition and has now dropped to second place, followed by Retail Trade. On the growth side, Industrial & Manufacturing remains the sector advisors most often expect to see more deals, now joined by Healthcare & Pharmaceuticals and IT Services, which have displaced Software Development and Business Services from the top three.

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