January 21 2026 | Deals | M&A Advisors | Europe
The DACH region (Germany, Austria and Switzerland) is witnessing a fundamental shift in deal dynamics. After years of holding out for higher valuations, many business owners are now prioritizing succession and stability. Juerg Stucker, a veteran of Swiss corporate finance, notes that while growth remains moderate, the market is ripe for strategic buyers and private equity firms focused on "roll-ups" and supply chain optimisation.
In an environment characterized by new trade complexities and high automation pressure, the ability to integrate and automate is becoming a primary driver of value. While mega-mergers may be scarce, the steady flow of small-to-mid-sized transactions – particularly in resilient sectors like med-tech and green infrastructure – is expected to anchor the 2026 M&A calendar.
Here’s the full interview
Moderate growth and modest prices will be key features of the mid-market across Germany, Austria and Switzerland in 2026, as business owners adjust their expectations and enact exit plans that may have been put on hold for a year or several, in anticipation of better times.
It’s an outlook that will open up opportunities for strategic buyers and private equity funds, according to Juerg Stucker, M&A and Corporate Finance Partner at Oaklins, Switzerland. A 25-year veteran of the sector, his firm’s focus is on sell side mandates for privately held companies across Europe, the US and Asia. Industrials, technology and business services are key focuses.
“Family owned businesses will be a steady source of small and mid-sized transactions in the upcoming year,” Stucker says. “Succession will be a driver in that market and devaluation on the pricing side will fuel those transactions. If you’re an owner who wanted to sell in 2024 but didn’t because prices were too low, having one or two more unfavourable years on the books may alter your position.”
Private equity buyers still have significant ‘dry powder’ to invest while strategic buyers will view lower prices as an opportunity to consolidate. Expect the focus to be on portfolio optimisation and carve-outs, rather than transformative mergers, Stucker predicts.
“Private equity funds don’t make the mega-deals – they continue to favour platform builds and roll-ups,” he says. Moreover, geopolitical and economic uncertainty have given rise to a more cautious approach across the board, making very large, key transactions particularly unlikely. “I certainly don’t expect to see as many as in other years,” Stucker says.
With one of the highest tariff rates globally now applying – a 39% duty imposed under the Trump administration – Swiss companies must find new strategies, for example, relocating production to Germany where the EU tariff is just 15%, or identifying new distribution channels and alternative paths to market, Stucker says. Pressure to automate and optimise supply chains and processes is also likely to drive consolidation in this space.
Switzerland’s flagship healthcare and med-tech sector will remain resilient and attractive, while engineering, IT testing services, renewables and green tech infrastructure solutions should continue to attract solid interest. Uncertainty slowed the pace of many deals in 2025 and will continue to do so over the upcoming 12 months.
The steadily increasing use of AI in the deal process may, however, help to speed it up again. “AI will accelerate due diligence,” Stucker predicts. “We’ve already seen its impact with automated document review, red flag analysis and contract screening. It will significantly shorten timelines and that helps us focus on critical risks earlier.”
Down the track, AI will play a growing role in deal sourcing as well as evaluation, Stucker believes. Rather than analysts spending days searching for potential buyers, the process will become data driven and exponentially quicker. “While the AI won’t replace manual work completely, the starting point will be very different,” Stucker says. “Tools and technologies such as virtual data rooms will fundamentally streamline the mundane processes and some preparation times will shorten.”
Looking ahead
The DACH region in 2026 is a market of pragmatic exits. For family-owned businesses, the "valuation gap" is being bridged by the reality of succession needs and a more difficult trading environment. For buyers, the focus is on stability: acquiring businesses that provide "green-tech" solutions or help optimize supply chains against global tariff pressures.
While the "mega-deal" might be on hiatus, the efficiency of the transaction lifecycle is improving. With AI-driven due diligence shortening timelines, the 2026 mid-market is poised for a high volume of smaller, high-quality deals that will reshuffle the industrial and tech landscapes across Central Europe.
