Industrial Machinery & Components M&A Update | Q2 2025

Latest market trends, valuation levels and deals in the Industrial Machinery & Components (IM&C) sector

The Industrial Machinery & Components (IM&C) sector continues to navigate a complex yet opportunity-rich environment. In this quarterly update, we explore valuation dynamics, M&A trends, strategic priorities, and evolving sourcing strategies shaping the Q2 2025 deal landscape.

At the end of Q2 2025, stock-listed IM&C companies traded at a median EV/EBITDA multiple of 9.3x – exactly in line with the sector’s long-term average. These valuations reflect robust fundamentals, supported by stable financing, solid end-market demand, and rising investment in automation, digitalization, and sustainability. Software- and service-focused business models continue to attract valuation premiums.

With 197 recorded transactions, European IM&C M&A activity declined slightly following a particularly strong Q1, yet remained at a high level. Strategic buyers accounted for 84% of all deals, while financial sponsors acted more selectively (16%) in light of geopolitical tensions and new U.S. tariffs.

Cross-border activity fell to 45%, while domestic deals rose to 55% – the highest share in a year. This highlights a growing focus on operational proximity, resilient supply chains, and regional consolidation.

Our report highlights key industry trends and offers up-to-date insights into valuation levels and selected transactions.

We welcome your feedback and are happy to discuss the latest industry trends with you.