Selling a Business in Madrid
Madrid is one of the most active M&A markets in Southern Europe. Spain's economic recovery, a deep concentration of institutional PE capital, and the country's unique position as the primary European gateway to Latin America make Madrid a market where well-run businesses attract genuinely competitive buyer interest from both domestic and international acquirers.
The Madrid mid-market M&A landscape in 2026
Madrid's mid-market is characterised by a buyer universe that is deeper and more diverse than most European cities outside London and Frankfurt. Pan-European PE funds have established Spanish coverage desks, large US strategics view Spain as a core European market, and domestic corporates — from the infrastructure champions to financial groups — are consistently acquisitive of businesses in their verticals.
Spain's LatAm connection is a genuine differentiating factor. Businesses with Latin American revenues, client relationships, or operational footprints are consistently more attractive to certain strategic buyers than equivalent businesses without this exposure. The Spanish language, cultural affinity, and established commercial relationships across the Atlantic create strategic value that is difficult to replicate and that buyers — particularly US multinationals seeking LatAm market access — pay premiums to acquire.
PE activity in Madrid in 2025-2026 has been strong. The combination of relatively attractive Spanish valuations versus Northern European comparables, improving macroeconomic conditions, and a well-developed local PE ecosystem has driven deal volumes. Funds that were cautious through the rate cycle are returning to market with capital to deploy.
For founders considering a sale, Madrid's depth of buyer interest is an advantage — but only if the process is designed to reach the right buyers. Domestic-only processes leave significant value on the table. A process that runs Spanish and international buyers simultaneously, including LatAm-focused strategics where relevant, consistently produces better outcomes.
Key sectors driving Madrid M&A
Madrid's economy spans financial services, infrastructure, technology, and its unique role as the bridge to Latin America. Here is what buyer appetite looks like across each sector.
Financial Services
Madrid is the financial capital of Spain and one of the most important financial centres in Southern Europe. Santander, BBVA, and Mapfre are all headquartered here, and the surrounding ecosystem of insurance intermediaries, asset managers, fintech businesses, and financial technology providers creates a consistently active M&A segment. Buyer interest comes from both domestic consolidators and European financial groups looking to access Spain's large retail banking and insurance market.
Infrastructure, Utilities & Construction
Spain's infrastructure champions — Ferrovial, ACS, Iberdrola — are headquartered in Madrid and are among the most acquisitive large-cap companies in Europe. Below them, a dense ecosystem of specialist engineering, facilities management, and utilities services businesses sees consistent deal flow. This is a sector where Spanish corporates, international infrastructure funds, and PE-backed platforms are all active acquirers, and businesses with contracted revenues and strong public or regulated sector client relationships achieve competitive valuations.
Technology & Digital
Madrid's technology ecosystem has grown substantially, and the city now hosts a credible cluster of SaaS, enterprise software, and digital services businesses. Major US technology companies have established Madrid as their Iberian hub, and Spanish technology businesses are increasingly exiting to international strategics. PE fund activity in the Madrid technology sector is high — both pan-European funds with Spanish coverage and dedicated Spanish vehicles are active at the mid-market level.
Media & Telecommunications
Prisa, Mediaset España, and Telefónica are all based in Madrid, anchoring a broader media and content ecosystem. Digital media businesses, advertising technology platforms, and content production companies are attracting interest from European media groups and US streaming platforms expanding European content capabilities. Telecommunications equipment and managed services businesses are an adjacent active M&A segment.
Latin America Gateway Businesses
Madrid's most distinctive strategic asset in M&A is its role as the primary gateway between Europe and Latin America. Spanish businesses with LatAm operations — whether clients, revenues, or production footprints — are structurally more valuable to certain buyers than equivalent businesses without this exposure. US corporates, pan-European groups, and Spanish multinationals all factor Spanish-language capability and established LatAm relationships into their acquisition rationale.
Real Estate & SOCIMIs
Spain's real estate market, including the SOCIMI structure (Sociedad Cotizada de Inversión en el Mercado Inmobiliario — Spain's REIT equivalent), is an active M&A segment. Real estate technology, property management, and hospitality real estate businesses based in Madrid attract interest from international real estate funds and pan-European property platforms. The SOCIMI regime has created a growing listed real estate sector that intersects with M&A activity.
Spanish legal and structural considerations when selling your business
Selling a Spanish business involves specific considerations under the Ley de Sociedades de Capital, Spanish labour law, and sector-specific regulatory frameworks. These are manageable with proper planning, but they need to be understood before you begin a process.
SL vs SA Structures
Spanish businesses operate primarily as Sociedad Limitada or Sociedad Anónima. The SL structure — equivalent to a private limited company — is most common in the mid-market. The Ley de Sociedades de Capital governs both structures and sets the framework for share transfers, shareholder rights, and corporate governance. SL share transfers require a public deed (escritura pública) before a notary and registration with the Registro Mercantil, which buyers account for in their execution planning.
CNMC Merger Control
The Comisión Nacional de los Mercados y la Competencia is Spain's competition authority and handles merger control notifications for transactions meeting the Spanish filing thresholds. CNMC review adds timeline to transactions and requires early assessment of whether the thresholds are triggered — both at the Spanish national level and in combination with EU Merger Regulation thresholds. CNMC has been active in reviewing transactions in regulated sectors, and early engagement with competition counsel is advisable.
Works Council Consultation
Spanish labour law requires information and consultation with the comité de empresa (works council) in transactions involving a transfer of undertaking or significant workforce impact. The consultation process must be completed before implementation of the transaction — or at minimum, initiated in parallel with deal execution. Spanish labour law is relatively protective of employee rights, and legacy employment disputes, unfair dismissal exposure, and social security contributions are standard diligence areas for buyers.
Private Equity Activity & Deal Dynamics
Spain is one of the most PE-active markets in Southern Europe. Cinven, Carlyle, Blackstone, KKR, and numerous mid-market PE funds are all active acquirers of Spanish businesses. This PE depth is a genuine advantage for sellers — a well-run process in Madrid will routinely generate multiple PE and strategic bids. Spanish PE processes are well-institutionalised, and buyers are experienced at moving through diligence and documentation efficiently once a preferred bidder position is established.
What buyers are looking for in Madrid businesses right now
Madrid's buyer market in 2026 is disciplined and well-informed. Buyers who are active in Spain have seen a significant number of opportunities and know what good looks like. Businesses that can demonstrate earnings quality, strategic positioning, and a credible growth story command premium outcomes. Those that cannot typically see wider bid spreads and more conditionality.
Spanish market leadership combined with LatAm optionality
The businesses achieving the strongest multiples in Madrid are those that combine defensible Spanish market positions with credible Latin American growth vectors. For international buyers, this combination provides the European base and the growth market access in a single transaction.
Contracted revenue with public or regulated sector clients
Whether infrastructure services, IT services, or financial services, contracted revenues with public bodies or regulated entities provide the revenue visibility that underpins PE and institutional buyer models. Long-term frameworks, concession agreements, or insurance contracts with strong renewal histories are particularly valued.
Clean capital structure and shareholder alignment
Buyers in Spain's PE-active market move quickly when they find the right business. Shareholder alignment — founders and any co-investors who are aligned on timing, price expectations, and deal structure — is a material factor in whether a process closes efficiently or stalls at critical moments.
Scalable operations with Spanish market expertise
International acquirers entering Spain through an acquisition are buying not just revenue but knowledge of the market. Businesses with established regulatory relationships, customer networks, and operational infrastructure that would take years to replicate independently command strategic premiums that purely financial buyers cannot always match.
Also in Spain
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Considering selling your Madrid business?
We offer an initial confidential consultation at no charge and without obligation. We will give you an honest assessment of what your business is likely worth in the current market, what a sale process would look like for a Spanish business, and whether the timing is right. If it is not the right time, we will tell you that too.