The global mergers and acquisitions boom that defined 2025 is persisting into 2026, as companies reassess their portfolios amid increasing demand for artificial intelligence-led transactions. However, a tight capital pool is compelling executives to be more discerning in their deal-making. Despite a slow start in 2025 due to Trump's tariffs disrupting acquisitions and new public listings, the value of deal-making surged by nearly 40% to a record $4.9 trillion, according to Pitchbook, surpassing the previous high of $4.86 trillion in 2021 as both deal count and value activity peaked.
Market sentiment is optimistic about the continuation of this trend, with Wall Street eager for large deals amid the possibility of lower borrowing costs. A Bain & Company survey of 300 M&A executives found that 80% expect to maintain or increase deal activity this year, citing improved macroeconomic conditions and a growing exit backlog for private equity and venture capital assets.
Jake Henry, Global co-leader of McKinsey's M&A Practice, commented on the impact of stabilizing trade policies, noting a transition from relief to confidence and a fear of missing out. A Goldman Sachs survey of 600 corporate and financial sponsor clients revealed that 57% believe scale and strategic growth will primarily drive deal decisions this year. "As abrupt shifts in trade policies settle into a pattern of less threatening change, companies are emboldened to take action," he said.
Companies are critically reassessing where to operate amid geopolitical risks, economic fragmentation, and uneven global growth, according to Suzanne Kumar, EVP of Bain's global M&A and divestiture practice. "Businesses urgently need to innovate to stay ahead of technological disruption, a post-globalization economy, and shifting profit pools," Kumar added.
Goldman Sachs topped global M&A rankings last year with advisory roles in nearly 40 deals amassing a total volume of $1.48 trillion, marking a robust period for mega-deals, according to Reuters and LSEG records. Nevertheless, companies remain judicious, as indicated by Boston Consulting Group’s M&A sentiment index, which rebounded to 75 from a low in late 2022 but is still below the long-term average, suggesting a cautious optimism in the market.
While the desire for deals is substantial, discretionary capital for funding remains historically low, compelling executives to pursue only transactions with clear returns. The allocation of capital for M&A reached a 30-year low in 2025, with companies directing more cash toward dividends, buybacks, capital expenditures, and R&D. "Executives must evaluate whether M&A pathways and specific deals will enhance competitive positioning in attractive markets, rethink portfolio boundaries, and make larger, bolder capability decisions," Kumar advised.