CEE SME M&A Market Shows Strong Activity in H1-2024

Dealsuite produced its first M&A Monitor for Central and Eastern Europe. The periodic and well-received survey from Dealsuite looks at M&A market trends based on data-input from M&A advisory firms from the region. 

Here are the most important findings from the first half of 2024.

The average EBITDA-multiple is 5.2

The average EBITDA-multiple of an SME in CEE is 5.2. Companies in the healthcare and pharmaceutical sectors, as well as the software development sector, are sold at the highest prices. The EBITDA multiple of an SME in CEE varies between 7.1 (healthcare and pharmaceutical) and 3.9 (hospitality and tourism).

Buyer intent by sector

The SME M&A market remains a seller's market, with demand continuing to exceed supply. The average across all industries is 5.7 interested parties per company for sale. The software development sector attracts the most interested buyers per company, with an average of 8.9 buyers per company in this sector.

Company age at sale

The majority of advisors (73%) report that on average,  a company for sale is 10 years old or older. A third of the respondents (34%) observe a trend toward earlier sales; while 58% perceived no significant change in the past 10 years.

EBITDA-multiple in the neighbouring regions

The price differences for similar companies by region becomes clear when comparing the average EBITDA-multiples. Companies in the DACH region are, on average, sold for a higher EBITDA-multiple (5.6) than in France (5.35), the UK and Ireland (5.2), Central and Eastern Europe (5.2) or the Netherlands (4.8). Therefore, selling companies to acquirers from abroad may generate a higher price. The average EBITDA-multiple is rising in all regions compared to H2-2023.

Outlook

The outlook for the M&A market in the CEE region for the second half of 2024 is optimistic. 87% of respondents are slightly to very optimistic about the remaining months of the year.