Acquisition prices for European SMEs down further to 8.3x EBITDA, the lowest level since 2014
The mid-market Argos Index® for the fourth quarter of 2025 – published by Argos, the independent European investment fund, and Epsilon Research, the online platform for the management of unlisted M&A transactions – is now available. Launched in 2006, this index tracks the valuations of unlisted eurozone SMEs in which a majority stake has been acquired during the last six months.
“In the fourth quarter of 2025, acquisition prices for European SMEs fell to 8.3x EBITDA, the lowest level since 2014. The decline is the result of both lower multiples for larger deals and lower prices paid by investment funds. Prices continued to be held back by the macrofinancial environment, which included an increase in long-term interest rates, record sovereign debt levels, heightened geopolitical tensions and uncertainty stemming from Donald Trump’s unpredictable policies, which continued to weigh on investor confidence and valuation assumptions,” said Louis Godron, Chair of Argos.
Acquisition multiples for unlisted European SMEs
Median EV/EBITDA multiple on a six-month rolling basis – Source: mid-market Argos Index® / Epsilon Research
- In the fourth quarter of 2025, acquisition prices for unlisted European SMEs declined again (by 4.6%) to 8.3x EBITDA, the weakest level seen since the first half of 2014.
- There was a sharp correction in the upper mid-market, where multiples fell by 22%, while valuations at the lower end of the market stabilized.
Lower prices paid by investment funds
- In the fourth quarter of 2025, multiples paid by investment funds fell further to 8.7x EBITDA.
- Multiples paid by strategic buyers stabilized at the low level of 7.7x EBITDA.
Ongoing serious downward pressure on prices
- In the fourth quarter of 2025, transactions at extreme multiples accounted for 34% of the index sample, in line with the previous quarter.
- The proportion of deals at multiples of over 15x EBITDA remained at an all-time low of 7%.
Acceleration in eurozone mid-market M&A activity at the end of the year
- Mid-market M&A activity in the eurozone rose by 30% in the second half compared with the first, as did LBO volumes, and was up 8% on a full-year basis relative to 2024.
- This rebound was supported by stronger-than-expected eurozone fundamentals, i.e. controlled inflation, improving economic growth and corporate earnings.
Argos Fund
Coralie Cornet
[email protected]
+33 6 14 38 33 37
Argos Fund / argos.fund – One business, two strategies. Argos is an independent European private-equity group that supports the growth of SMEs and mid-caps and their management teams. It has €2.3 billion in assets under management and 35 years of experience, has supported more than 100 companies so far, and operates from offices in Amsterdam, Brussels, Frankfurt, Luxembourg, Milan and Paris. The group seeks to acquire majority interests and invests between €10 million and €100 million per investment via its two strategies:
- The Argos Mid-Market fund unleashes companies’ potential and helps them move to the next phase of their development.
- The Argos Climate Action fund (SFDR 9) aims to shape sustainable European leaders by facilitating their grey-to-green transition.
Epsilon Research has developed the leading professional online platform for the management of unlisted M&A transactions. The platform includes data, analysis reports, software tools and services that are essential for evaluating and managing unlisted investments: The EMAT database of European transaction multiples, with detailed analysis of over 10,000 M&A deals covering all industry sectors; indices and studies published regularly by Epsilon, including the Argos Index®; a tool for evaluating the portfolios of private equity funds; cloud-based M&A CRM and project management software; and an online dataroom for SME transactions.
The mid-market Argos Index® tracks valuations of unlisted mid-market companies in the eurozone. Compiled by Argos and Epsilon Research and published every three months, it shows the median EV/EBITDA multiple, on a six-month rolling basis, of transactions that meet the following criteria: mid-market deal (100% equity value between €15 million and €500 million), target based in a eurozone country, acquisition of a majority stake, and certain activities excluded (financial services, real estate, high tech).
