Slight rebound in acquisition prices for European SMEs, to 8.6x EBITDA
The mid-market Argos Index® for the first quarter of 2026 – 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 first quarter of 2026, acquisition prices for European SMEs recovered slightly to 8.6x EBITDA, supported by prices paid by investment funds. The macroeconomic backdrop was difficult due to the slowdown in GDP growth and geopolitical uncertainty related to the conflict in Iran, which raised concerns that central banks will keep interest rates at a high level because of the jump in oil prices. Volatility in US tariff policy and political fragility in France also continued to cloud the outlook,” said Louis Godron, Managing Partner at 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 first quarter of 2026, acquisition prices for unlisted European SMEs showed a 3.6% increase compared with the previous quarter, after a sustained downward trend that had brought the index to its lowest level in over a decade.
Significant rebound in prices paid by investment funds for premium assets
- The slight upturn in the index was driven by multiples paid by investment funds, which rose sharply to 10.0x EBITDA (vs. 8.7x in the previous quarter). As well as having a large amount of capital to deploy, funds enjoyed better funding terms and saw vendor expectations return to more normal levels. Transactions were concentrated in healthcare, software and B2B services, which are sectors that command higher multiples.
- However, strategic buyers continued to apply strict pricing discipline, concentrating activity on targeted, value-accretive acquisitions: this held back multiples in this category of buyers, which remained broadly stable at 7.8x EBITDA.
Distribution of transaction multiples returning to normal
- In the first quarter of 2026, transactions at extreme multiples made up 28% of the sample, down from 34% in the fourth quarter of 2025.
- The proportion of deals at multiples of less than 7.0x EBITDA fell to 22% from 27% in the previous quarter.
- Transactions at multiples of over 15x EBITDA hit a new low of 6%.
- The average EBITDA margin of acquired companies in the sample fell to 12.6%, as opposed to 13.4% in the second half of 2025 and 17.4% in the second half of 2024.
Eurozone mid-market M&A activity higher than in 2025
- Mid-market M&A activity in the eurozone fell by 4% compared with the fourth quarter of 2025, but was 30% higher than in the first quarter of 2025.
- Investment fund activity remained stable in this segment, accounting for 15% of deal volume.
Argos Fund
Coralie Cornet
[email protected]
+33 6 14 38 33 37
Argos Fund argos.fund – One firm, two strategies. Argos is an independent European private equity group that supports the growth of mid-sized businesses and backs their management teams. With over €2.3bn in assets under management, 35 years of experience and more than 100 businesses assisted, Argos operates in 4 regions (Benelux, DACH, France and Italy) from 6 offices in Amsterdam, Brussels, Frankfurt, Luxembourg, Milan and Paris. The group seeks to acquire majority stakes and invests between €15m and €100m in each investment of its two strategies:
- The Argos Mid-Market fund unlocks business potential and helps companies make it to the next level.
- The Argos Climate Action fund (SFDR art. 9) aims at shaping European sustainable leaders by making 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, certain activities excluded (financial services, real estate, high tech).
