Industrial Machinery & Components M&A Update | Q3 2025

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

The IM&C sector strengthened in Q3 2025, with valuations rising to 9.7× EV/EBITDA, deal volume increasing to 251 transactions, and higher private equity and cross-border activity shaping the market.

We are pleased to share the latest edition of our industry report by the Industrial Machinery & Components (IM&C) group.

By the end of Q3 2025, listed IM&C companies reached a median valuation of 9.7x EV/EBITDA, which is a clear breakout above the long-term average. The positive trend reflects strong earnings momentum, renewed investor confidence, and continued investment in automation, digitalization, and sustainability. Firms with software components, service, or ESG-driven focus continue to command premium valuations.

M&A-activity rebounded strongly, with 251 transactions recorded across the European IM&C sector. While strategic buyers remained active, financial sponsors accounted for roughly a quarter of deals, signaling a clear resurgence of private equity appetite for industrial assets.

Cross-border dealmaking surged to nearly 60% underscoring a renewed focus on international consolidation and global platform building. European investors increasingly prioritize scalable business models, technological differentiation, and supply-chain resilience.

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.