Why do investors pay the highest multiples in Europe for DACH targets? The latest Drooms Report 2026: Executing in an Era of Market Complexities, powered by PitchBook data, examines PE and M&A trends across eight European regions. The DACH region stands out for a clear reason: it combines industrial strength, technological depth and high-quality assets in a way few other European markets can match.
The highest multiples in Europe
German acquisition targets command the highest median M&A EV/EBITDA multiples of all eight regions examined, reaching 13.5x year to date. That premium is visible in individual transactions, too. CapVest Partners’ €7 billion acquisition of STADA Arzneimittel, one of the largest European PE exit events in 2026, commanded a 10.4x multiple.
These valuations show how strongly buyers continue to compete for quality. But they also raise the bar: when investors pay premium prices, every information gap matters. Diligence precision at entry becomes commercially decisive.
A deep bench of technology and industrial leaders
The breadth of the DACH innovation ecosystem helps explain the premium. SAP remains Europe’s largest software company. Aleph Alpha is Germany’s sovereign large-language-model answer to France’s Mistral AI. Helsing is one of Europe’s most closely watched defence AI companies. DeepL has established itself as a leading AI translation platform.
At the same time, DACH remains deeply rooted in industrial know-how, advanced manufacturing and specialised B2B markets. This combination of technology and industrial substance makes many targets attractive to both strategic buyers and private equity investors. Healthcare adds another layer: assets such as STADA show that scalable, resilient platforms continue to attract strong buyer interest even in a more selective market.
Structural advantages for dealmakers
DACH is one of the most active PE and M&A markets in Europe in terms of volume and capital deployed, trailing only the UK. One structural characteristic sets it apart: many of Germany’s largest acquisition deals have been driven by investors located within the same economic bloc. This can reduce certain cross-border regulatory risks, a factor that is becoming more relevant as the EU tightens expectations around data jurisdiction, digital sovereignty and sensitive technology infrastructure.
In November 2025, France and Germany co-hosted a Summit on European Digital Sovereignty, identifying AI, data and digital public infrastructure as priorities for European technological independence. German assets critical to that agenda will continue to change hands at valuations that leave little room for miscalculation.
What this means for practitioners
The DACH premium reflects the quality of the region’s targets, but it also raises the demands on deal execution. At 13.5x multiples, incomplete data, unclear ownership structures or weak documentation can quickly become expensive. Secure and efficient deal infrastructure is therefore not just an operational advantage. It becomes a commercial necessity in a market where the price of getting it wrong is measured in hundreds of millions of euros.
Read the full Drooms Report 2026: Executing in an Era of Market Complexities: European M&A and PE Trends and the Technology Imperative.
