Industrial Machinery & Components M&A Update | January 2026

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

In Q4 2025, the IM&C sector delivered a robust performance. Stable valuations of around 10.0x EV/EBITDA for public companies in Europe, solid M&A activity with approximately 200 transactions, and a further increase in financial investor participation highlight the continued attractiveness of the sector.

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

Towards year-end 2025, valuations of listed IM&C companies stabilized at elevated levels. With a median of around 10.0x EV/EBITDA, multiples remained above the long-term average, reflecting disciplined investor behavior rather than short-term exaggeration. Valuation premiums continue to concentrate on businesses with resilient margins, strong service exposure, and clear differentiation.

M&A activity in the IM&C sector remained robust, yet selective. With close to 200 transactions, deal volume held up well and was primarily driven by strategic considerations. Buyers focused on clearly defined add-on acquisitions to strengthen technological capabilities, service offerings, or regional positioning. Financial investors slightly increased their share to 24%, marking the highest level of the year.

After an exceptionally strong prior quarter, the share of cross-border transactions normalized to 46%. International buyers nevertheless remained active, particularly for technologically differentiated assets with an attractive installed base.

Looking ahead to 2026, sentiment in the IM&C sector is cautiously constructive. Increasing alignment between buyer and seller expectations, combined with improving earnings and backlog visibility, is expected to continue supporting well-prepared transactions.

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.