Research
2026 M&A Outlook
5 key trends shaping dealmaking, corporate development, and M&A in 2026
January 29, 2026
Key M&A Trends for 2026: What’s Shaping the Next Deal Cycle
The Return of Middle-Market Momentum
After lagging in 2025, middle-market M&A activity is expected to rebound in 2026 as valuations stabilize, financing conditions improve, and buyer confidence returns—reigniting deal flow across priority sectors.AI as a Competitive Differentiator
AI is reshaping the M&A process by accelerating target identification, diligence, and deal execution. These capabilities are widening the speed and insight gap between private equity firms and corporate acquirers that lag in AI adoption.Greater Selectivity and Strategic Discipline
In a more competitive environment, leading acquirers are prioritizing strategic fit, synergy realization, and long-term value creation over deal volume—raising the bar for both targets and deal theses.Execution and Integration Under Pressure
Post-close execution remains a critical risk area. Process gaps, unclear ownership, and weak integration handoffs continue to be the biggest sources of value leakage in M&A, increasing pressure on integration readiness.Rising Competitive and Regulatory Complexity
New buyer profiles, heightened regulatory scrutiny, and shifting trade and industrial policies are adding complexity to the M&A landscape—reshaping deal timelines, diligence priorities, and risk management strategies.
The Year M&A Activity Resets
"The last few years have been pretty choppy, but the major transformational disruptions that defined the past 12–18 months have leveled out, which means 2026 should be smoother and more comfortable for corporate development offices to start pursuing deals again.
On AI, we see more maturity now in understanding where it will cause headwinds versus tailwinds, and that’s driving more willingness to invest. There are also better deals on the market because targets are more realistic about valuations.”
Alex Torgerson
Partner, Mergers & Acquisitions
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