Other than dropping in a rebuilt transmission there don’t seem to be many choices. You see, there are so many potential problems with your transmission that finding the exact cause without much more information is like trying to find the proverbial needle in the haystack. Here are just a couple of ideas of the type of information here to make an exact diagnosis (the answer would still be the same, by the way):
1. When was the last time the transmission fluid was drained and replaced (not flushed, never power flush — if you do, and your tranny is actually in good shape, you could damage it)?
2. When was the last time the tranmission fluid filter was replaced?
3. What color is the transmission fluid?
4. Are there any metal shavings or filings in the transmission fluid (you have to drain the transmission and drop the pan)?
5. Does the transmission fluid have a burned smell?
6. Is the check engine light on? If it is have you pulled the codes?
7. If you have received failure codes, what do they indicate?
This could go on for several more steps, however, you can see the issue with your description. It is good but it isn’t good enough to give other than a general diagnosis. As noted, you probably should be thinking of replacing the transmission. The reason being is this: if you like the way the car handles, maneuvers and responds, then keep the car and replace the transmission. Though you are looking at an expense of about $4,000 to $4,500 (Mercedes-Benz vehicles tend to be pricey), it makes more sense to spend this amount for a car that serves you well, even with over 100,000 miles on the clock. The fact is that many in the Mercedes community believe your vehicle is just broken in at 105,000 to 110,000 miles. And, many M-Bs on the road routinely have far more mileage than yours.