Most M&A professionals (65 percent) in the Benelux think that valuations will remain more or less flat over the next 12 months. 26 percent expects an increase and 9 percent expects a decrease. The results mark a significant shift from last year. At that time, only 10 percent anticipated an increase in valuations, while 46 percent expected them to remain stable, and 44 percent predicted a sharp decline.

This is evident from the M&A Trend Survey Benelux 2024 / 2025 by M&A and Ansarada. For this research, 175 Dutch and Belgian M&A professionals took part in an online survey and the M&A editors interviewed 35 dealmakers live.

Dealmakers across the Benelux largely agree that company valuations will remain stable in the near future, despite various macroeconomic factors. Richard Reis, Partner at Argos Wityu, notes: "Valuations will remain more or less the same. If you look at the Argos Index for the first two quarters of 2024, you see a plateau around 9 times EBITDA. I don’t see why this would change."

This sentiment is echoed by Hans Swinnen, Partner at 3d-investors, who observes that the market for high-quality assets remains robust. "I think high-quality assets will remain expensive, but lower- and medium-quality assets are becoming cheaper. There will be some downward pressure, though for now, valuations are holding steady – mostly due to the strength of top-tier assets."

A key factor in this stability is the approach buyers are taking. According to Sander Neeteson, Head of Corporate Finance at ABN AMRO, buyers are more cautious than in the past, especially after past disappointments. "Buyers are no longer chasing aggressive growth at any cost and are doing more detailed research, which often leads them to propose lower valuations to offset risks", says Neeteson. However, he adds that competition for high-quality assets ensures that the best companies continue to command premium prices.

Although financing has become more expensive in recent years, some dealmakers see room for valuations to remain steady, especially as interest rates begin to stabilize. Karel Pinxten, Partner at Deloitte, explains: "Debt became more expensive quickly over the last few years, but valuations never really dropped significantly for top companies. Now, with borrowing costs easing, I don’t expect valuations for high-quality businesses to rise much further, either."

Nancy De Beule, Partner at PwC, agrees, suggesting that in sectors where multiples are already high, rising interest rates have had little impact. "In certain industries, the multiples were already high, and I don't have the impression that higher interest rates have had a negative impact", she says.

While the overall trend suggests stability, several professionals highlight sector-specific variations that could influence valuation trends. Tom Snijckers, Partner at Oaklins Netherlands, points to the energy sector as an example. "Unique, high-quality assets in the energy sector can still achieve high valuations", says Snijckers. However, he cautions that geopolitical uncertainty and regulatory changes, particularly in the context of sustainability, could apply downward pressure on valuations.

Tom Beltman, Managing Partner at Marktlink Fusies & Overnames, underscores the balance between supply and demand in the M&A market, which is keeping valuations relatively stable. "We’re seeing increased deal activity, but prices aren’t exorbitant. Even though more buyers are entering the market, there’s still high demand from companies wanting to sell", Beltman notes, suggesting a continued equilibrium in pricing.

Though the majority of dealmakers predict stability, a minority believe there will be a slight increase in valuations over the coming year. This is particularly the case in high-demand sectors such as technology, energy, and healthcare. Joost den Engelsman, Head of Private Equity at NautaDutilh, expects moderate growth driven by innovation and strategic priorities. "In 2025, we expect to see increased deal valuations in sectors like technology, energy, and healthcare, driven by macroeconomic factors such as innovation, energy transition, and AI integration."

Kuif Klein Wassink, Partners at Dentons, also anticipates a slight increase. He highlights falling interest rates and the abundance of capital as factors that could support rising valuations. "For high-quality assets, I expect a stronger increase, while less attractive assets might see a decline", he explains.

The overall picture painted by Benelux M&A professionals is one of stability. Valuations are expected to hold steady, with some potential for sector-specific increases, particularly in technology and energy. As Richard Reis aptly summarizes: "Nobody has a crystal ball, but all signs point to stability in the near term."

For dealmakers in the Benelux, this may mean more opportunities to close deals in a market where valuations remain predictable, even as macroeconomic and geopolitical forces evolve.