Industrial Machinery & Components M&A Update | July 2026

Current trends, valuation levels and deal activity in the IM&C sector, with a special spotlight on Industrial Automation

The European Industrial Machinery & Components (IM&C) sector gained further momentum in Q2 2026.

M&A activity accelerated to 247 closed transactions, bringing total H1 2026 deal volume to 466 transactions. At the same time, public company valuations remained resilient, with median EV/EBITDA multiples settling at 9.7x by the end of June 2026 — still above the long-term median of 9.4x.

After peaking at around 10.5x EV/EBITDA in February/March 2026, valuations pulled back during Q2 due to Iran war but remained above the long-term average. This reflects disciplined buyer behavior rather than broad-based multiple expansion. Valuation premiums continue to focus on companies with resilient margins, strong service exposure and clear differentiation.

M&A activity in the European IM&C sector continued to strengthen. Strategic buyers dominated deal flow with an 81% share in Q2, using targeted add-on acquisitions to strengthen technology, service capabilities and regional positioning. Financial investors remained selective, accounting for 19% of transactions, with a focus on established platforms and bolt-on opportunities.

Cross-border activity also increased further, reaching 57% of transactions in Q2 2026 compared to 47% in Q1. International buyers continue to target assets with technological leadership, installed customer bases and access to attractive regional markets.

This edition includes a dedicated Industrial Automation spotlight

The subsector recorded 45 European transactions in Q1 and 53 in Q2 2026, including 16 German targets in H1. Key drivers include rising labor costs leading to an increased demand for automation, re-shoring, robotics programming and robotics convergence, and demand for assets with deep integration know-how and recurring service relationships.

Our report highlights current valuation levels, selected transactions and key implications for strategic buyers and financial investors.

We look forward to your feedback and would be pleased to discuss the latest sector trends with you.