Buyout valuations in Europe are regaining momentum. According to PitchBook’s Q3 2025 European Private Equity Breakdown, overall deal value rose 25% year-to-date, with 37% of that total (€66 billion) driven by megadeals worth over €1 billion. This surge, coupled with record dry powder of €122 billion across European funds, reflects renewed appetite for high-quality assets, helped by central bank rate cuts and improving financing conditions. Yet pricing remains uneven. Bain & Company’s 2025 Private Equity Outlook reported average European buyout multiples of 12.1× EBITDA, while median values for mid-market deals linger closer to 10× to 11×, underscoring a bifurcated market in which sector, quality, and margin-growth potential still dictate entry pricing.
With competition intensifying across Europe’s lower-mid-market, this panel will examine how sponsors are calibrating valuations relative to the middle- and large-cap space. Is there still room for multiple expansion as a driver of value creation, and if so, in which segments are GPs finding the most attractive opportunities? PwC’s 2025 Trend Report highlights that the bid-ask spread between buyers and sellers is narrowing, hinting at greater pricing alignment and potentially higher deal velocity heading into 2026. Will this continue as confidence returns and capital deployment accelerates?
