Argos Index® mid-market

Q1 2026: the Argos Index® gradually recovering to 8.6x EBITDA

Paris (France) – 20 May 2026 – The mid-market Argos Index® for the first quarter of 2026, published by Epsilon Research, the online platform for the management of unlisted M&A transactions, and Argos Wityu, the independent European investment fund, 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.

• 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.

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