Selling Businesses: The Market and Trends for 2026

The pulse of the market

The market for business acquisitions is a living organism. It reacts to interest rates, economic outlooks, available capital, and entrepreneur sentiment. Anyone looking to sell their business would do well to feel its heartbeat.

In this article, I analyse the current state of the acquisition market and the trends that will be decisive in the coming period. Not as abstract economics, but translated into what it means for you as an entrepreneur considering a sale.

The macro-economic context

Let’s start with the big picture. Economic conditions are mixed.

After years of increases, interest rates have stabilised but remain higher than the pampered levels of 2020-2021. This makes financing more expensive, putting pressure on acquisition prices. Buyers can borrow less, so they can offer less.

At the same time, there is a lot of capital available in private equity and family offices. After years of record fundraising, investors are sitting on large amounts of 'dry powder' – capital that must be invested. This creates demand for good acquisition targets.

The economic outlook is uncertain, making buyers more cautious in their bidding. But that very uncertainty can motivate sellers to act now, rather than waiting for a recession that pushes prices down further.

What buyers are looking for

Buyer preferences have evolved. Where ten years ago the focus was primarily on historical results, other factors now come into play.

Digitalisation is a must. Companies with modern IT systems, digital customer contacts, and data-driven decision-making are valued higher. Today's buyer does not want to invest in catching up; they want to build on a digital foundation.

Sustainability carries more weight. Not just out of conviction, but due to regulation and customer preferences. A company that is already ESG-compliant does not need investment to become so.

Resilience is a new criterion since the pandemic. How would your company perform in a new crisis? Diversification in customers, suppliers, and markets is seen as value.

Scalability attracts premium multiples. Can the company grow without a proportional increase in costs? Technology-driven scaling, repeatable models, platform potential – buyers pay extra for these characteristics.

Sectoral differences

Not every sector is equally popular with buyers. Preferences shift constantly.

Technology and software remains in demand, although the extreme multiples of the peak have fallen. SaaS companies with recurring revenue are still attractive to both strategic and financial buyers.

Healthcare benefits from an ageing population and increasing demand for care. From GP practices to healthcare technology, interest is high.

B2B services are stable. Accountants, engineers, consultants – companies with long-term customer relationships and recurring revenue are predictable and therefore attractive.

Retail and hospitality are having a harder time. Structural changes in consumer behaviour make buyers hesitant. Exceptions are niches with strong positioning.

Manufacturing and industry is mixed. Companies with unique capabilities or niche markets are sought after; generic manufacturing less so.

Price development

What are buyers paying? Multiples have fallen compared to the 2021 peak but are still at healthy levels.

For small SMEs (EBITDA below €500,000), multiples of 3 to 4 are common. For medium-sized companies (EBITDA €500,000 to €2,000,000), this rises to 4 to 6. Larger companies can achieve multiples of 6 to 8 or higher, depending on the sector and quality.

Earn-outs – a portion of the purchase price dependent on future performance – are more common than a few years ago. Buyers want to share risk; sellers must accept this or make concessions on the immediate price.

What this means for sellers

Practically translated to your situation as a potential seller:

The timing is reasonable, though not optimal. The market is not overheated as in 2021, but it is not depressed either. If you are willing to have realistic expectations, there is a market.

Quality wins. In a more selective market, well-prepared, demonstrably resilient companies stand out from the pack. The preparation I described in previous articles pays off now more than ever.

Patience pays. A sales process takes longer than a few years ago. Buyers take more time for due diligence and are more critical in their assessment. Prepare for a marathon, not a sprint.

Flexibility helps. A willingness to think along regarding structure – earn-outs, seller financing, transition periods – can make the difference between a deal or no deal.

Outlook

What does the near future bring? Predictions are always uncertain, but several trends are emerging.

Consolidation in many sectors will continue. Larger parties buy smaller ones to gain scale and market share. If you are in a fragmenting sector, there is a chance a consolidator will come knocking.

The ageing of the entrepreneur population creates supply. Many baby boomers are looking for an exit in the coming years. This could put pressure on prices in some segments.

And digital transformation remains a driver of acquisitions. Companies buy digital capabilities they cannot build themselves.

Also read about selling a business or request advice.