Slight rebound in acquisition prices for European SMEs, to 8.8x EBITDA
The mid-market Argos Index® for the second 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 second quarter of 2026, acquisition prices for European SMEs continued their rebound to 8.8x EBITDA. The recovery reflects the structural resilience of the Eurozone’s mid‑market despite lost momentum in M&A activity owing to Europe’s exposure to the Iran conflict, the spike in oil prices, the resulting inflation risk, and the fact that long‑term eurozone rates remain at an elevated level,” said Louis Godron, Managing Partner at Argos.
Acquisition multiples for unlisted European SMEs
Median VE/EBITDA multiple on a six-month rolling basis – Source: Argos Index® mid-market / Epsilon Research
- In the second quarter of 2026, acquisition prices for unlisted European SMEs rose 2.3% quarter‑on‑quarter, continuing the price recovery that began in Q1. This trend was broad‑based across buyer types and market segments.
The rebound was driven by both investment funds and strategic buyers, despite the gap in multiples.
- Multiples paid by investment funds rose further to 10.2x EBITDA in Q2 2026, extending the rebound that followed a low of 8.3x in Q4 2025.
- Multiples paid by strategic buyers also increased, from 7.8x to 7.9x, keeping corporate pricing broadly disciplined.
- The gap between fund and strategic buyer multiples widened slightly to 2.3x, continuing the divergence observed since the start of the year.
Diverging evolution of the extremes of the distribution.
- In Q2 2026, transactions at extreme multiples made up 32% of the sample, up from 28% in the previous quarter.
- The share of deals at multiples below 7.0x EBITDA increased to 27%, from 22% in Q1.
- The share of deals above 15x EBITDA continued to decline to 5%, a historical low.
- This gap reflects diverging pressure across sectors.
Eurozone mid‑market M&A activity declined as volumes fell.
- Estimated eurozone mid‑market M&A deal volume fell 8% quarter‑on‑quarter, extending the Q1 pullback.
- Investment fund deal volume rose 11% year‑on‑year in H1 2026 but was down 16% versus H2 2025.
- The LBO share remained stable at 14% by deal count, while its share by value stayed higher at 32%.
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 Article 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).
