M&A in the German Mid-Market: Trends 2026

The M&A market for Germany’s Mittelstand – its mid-sized, often family-owned companies – is facing a paradigm shift. While transaction volumes remain stable, valuation multiples and deal structures are changing significantly.

The growing complexity of due diligence processes, driven by ESG requirements and a tighter regulatory landscape, calls for considerably more professional preparation on the sell side.

The shift in valuation multiples

We are seeing a wide spread in multiples. Companies with resilient business models and a high level of digital maturity continue to achieve premium valuations. Cyclical industrial companies without a clear ESG strategy, by contrast, face significant discounts.

“Excellent preparation and a thorough vendor due diligence are more important than ever to maximise value in the process.”

In addition, structured purchase price payments (earn-outs) and vendor loans are on the rise again, bridging valuation gaps between buyers and sellers and securing financing in a more demanding interest rate environment.