By: Leib Orlanski Esq., Eric Simonson, Esq., and James Guadiana, Esq.
Foreign acquirers who are looking to the U.S. market for acquisitions often encounter higher valuation multiples in U.S. transactions compared to what they would encounter in European markets.
Key Drivers of the Valuation Gap
- Capital Market Depth: The U.S. benefits from deeper capital markets and a more active private equity ecosystem, increasing access to financing.
- Growth Expectations: U.S. companies are often expected to grow faster due to a unified national market, unlike Europe’s more fragmented regulatory landscape.
- Sector Composition: A higher concentration of high-multiple industries (e.g., technology and healthcare) drives U.S. premiums.
- Leverage Availability: U.S. deals typically use higher leverage ratios (e.g., 5.4x vs. 4.8x in Europe), supporting higher purchase prices.
European acquisition multiples generally trade at a discount of 1.5x to 2.0x EBITDA compared to U.S. companies. As of early 2026, the valuation gap has widened, with median U.S. multiples at 11.6x versus 9.9x in Europe.
Regional Comparison of Median EBITDA Multiples (2025-2026)
The following data reflects median EV/EBITDA multiples for M&A transactions in the 2025-2026 environment:
| Buyer Type | United States | Europe |
| Private Equity-led | 12.8x | 11.2x |
| Corporate-led | 9.9x | 8.5x |
Historically, strategic buyers have paid 6%–12% premiums over private equity firms due to synergy realization (cost savings and revenue growth).
However, this trend has shifted in recent years. Well-capitalized private equity firms have occasionally outbid strategic buyers—particularly for high-quality platform assets and software companies—sometimes paying up to 18% higher multiples.
Strategic Buyers: Paying for Synergies
Strategic buyers—companies operating in the same or adjacent industries—typically pay more because they evaluate acquisitions based on combined entity performance.
- Cost Synergies: Eliminating redundant roles, consolidating operations, and integrating supply chains
- Revenue Synergies: Cross-selling opportunities and expanded market reach
Currency Considerations for Foreign Buyers
- Revenue Repatriation Risk: A weaker U.S. dollar reduces the value of repatriated earnings when converted into foreign currency.
- Export Advantage: A weaker dollar can improve global competitiveness of U.S. operations.
Summary of Currency Impact
| Currency Environment | Impact on Purchase Price | Buyer Motivation |
| Strong Euro / Weak USD | Lower purchase price | High – “bargain hunting” in the U.S. |
| Weak Euro / Strong USD | Higher purchase price | Low – focus shifts to domestic or other markets |
Greenspoon Marder’s Corporate Practice represents clients in domestic and cross-border transactions, offering strategic guidance on attracting U.S. businesses, mergers and acquisitions, as well as other complex business matters, across global markets.
International M&A Group
Leib Orlanski
Partner, Corporate & Business
Greenspoon Marder LLP
Los Angeles, CA 90067
Office: 323-880-4539
Email: [email protected]
Eric Simonson
Partner, Corporate & Business
Greenspoon Marder LLP
New York, NY 10105
Office: (212) 524-5030
Email: [email protected]
James Guadiana
Partner, Tax
Greenspoon Marder LLP
New York, NY 10105
Office: (212) 524-5099
Email: [email protected]
This publication is provided by Greenspoon Marder LLP is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.
