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Global M&A Momentum Expected to Continue in 2026

In a recent report released by Bain & Company, the outlook for Global Mergers and Acquisitions (M&A) remains robust as we approach 2026. Following a remarkable rebound in 2025—where deal values surged by 40% to a staggering $4.9 trillion, marking the second-highest value in history—the momentum appears set to sustain. Bain's survey of 300 M&A executives indicated that a significant 80% anticipate either maintaining or increasing their deal activity in the upcoming year.

As the business environment continues to improve, bolstered by favorable macroeconomic conditions and a backlog of private equity and venture capital assets primed for exit, leaders across various sectors are keenly aware that many conventional business models have reached a pivotal point. Suzanne Kumar, Bain's executive vice president of the global M&A and Divestitures practice, emphasized that companies must swiftly reinvent themselves to navigate the burgeoning forces of technological disruption and a post-globalization economy.

Key Trends Shaping M&A in 2026

Bain outlines several forces that will be instrumental in shaping M&A strategy in the coming year, most notably:

• - Technology Disruption: Emerging technologies, including advancements in artificial intelligence, robotics, and quantum computing, are radically transforming the deal-making landscape. Nearly half of all technology industry transactions now have an AI component, and this trend is expected to accelerate as companies hunt for cutting-edge talent and solutions. Non-tech firms are also increasingly pursuing technology-centric deals.
• - Geopolitical Factors: The complexities of geopolitics and the reality of a fragmented global economy are prompting firms to reevaluate their strategies. Given the lessons learned from tariff shocks in 2025, companies are proactively adjusting their global footprints to balance exposure to riskier regions while optimizing more favorable markets.
• - Shifts in Portfolio Strategy: With evolving industry landscapes, many firms are gearing up for divestitures and spins, aiming to streamline their portfolios for enhanced focus and to capitalize on resurgent valuations.

Furthermore, Bain's report highlights that 45% of executives utilized AI tools in their M&A processes in 2025—more than double the usage from the previous year. A third of dealmakers are either employing AI systematically or redesigning their operations to integrate AI effectively. This shift is set to radically impact how deals are executed, with AI contributing to greater accuracy in intelligence, expedited paths to synergy realization, and an overall enhanced understanding of stakeholder needs.

Navigating Capital Constraints

Despite the prevailing optimism, one of the primary obstacles for M&A in 2026 remains the high demand for capital. The allocation of capital to M&A has dipped to levels not seen in the past 30 years, creating a competitive landscape for deal-making. As companies pivot towards capital expenditures and research and development, savvy reinvention strategies and effective value creation are increasingly vital.

Strategies for a Successful M&A Agenda in 2026

Amidst this dynamic backdrop, Bain outlines five critical strategies for steering M&A activities:
1. Revisit Strategic Context: Executives must rigorously analyze whether targeted M&A efforts will bolster competitiveness, expedite capability building, or serve as exit strategies when necessary.
2. Maximize Megadeal Benefits: Organizations that expanded significantly due to 2025's megadeals must focus on ensuring value generation through strategic integration.
3. Comprehensive Due Diligence: As capital becomes more precious, due diligence must expand beyond simple deal validation to confirm that M&A represents the best potential use of capital.
4. Invest in M&A Capabilities: Building robust M&A capabilities is critical for future competitiveness, allowing firms to identify and secure valuable assets.
5. Evolve Capital Allocation Practices: A long-term perspective on capital planning that aligns M&A with strategic goals in investment timing and size is essential for sustainable success.

Industry Insights and Regional Analysis

Bain's comprehensive report dissects trends in strategic M&A across various industries—including banking, software, and oil and gas—as well as regional evaluations covering markets in Australia, the U.S., Europe, and beyond. Notably, the banking sector saw a surge in deal values, while software firms aggressively acquired AI-related assets, reflecting an industry-wide emphasis on innovation and growth.

As we look toward 2026, Bain & Company underscores the imperative for organizations to adapt swiftly to changing market landscapes. The opportunities in M&A are vast, and strategic foresight will be crucial in capitalizing on them, leading to transformative growth and sustained competitive advantage.