M&A Insiders Predict the Market Will Continue to Surge This Year

Why It Matters

Sustained M&A momentum signals continued capital reallocation, while AI‑driven efficiencies could reshape deal economics and accelerate consolidation across sectors.

Key Takeaways

• 80% of surveyed execs expect M&A activity to stay high in 2026.
• Q1 2026 saw record mega‑deals above $10 billion.
• AI usage in M&A rose to 45%, now spans execution and integration.
• Over one‑third of dealmakers deploy AI systematically.
• Post‑globalization and profit‑pool shifts push firms toward bold portfolio moves.

Pulse Analysis

The 2025 M&A surge was anchored in improving macro fundamentals, a swelling pipeline of private‑equity and venture‑capital exits, and the realization that many legacy business models have plateaued. Those forces lifted total deal value by roughly 40% year‑over‑year, setting a high baseline for 2026. Early‑year data already confirms the trend, with a notable uptick in mega‑transactions—deals over $10 billion—that signal confidence among large corporates and sovereign investors to pursue scale‑oriented strategies.

Artificial intelligence has moved from a niche tool to a mainstream capability within the M&A lifecycle. Bain’s research shows AI adoption rose from under 20% to 45% of practitioners in 2025, and today it supports not only target sourcing and diligence but also transaction execution, post‑deal integration, and knowledge capture. More than one‑third of respondents now embed AI systematically, and over half anticipate a material impact on deal outcomes. This shift promises faster due diligence, better valuation modeling, and smoother post‑close integration, potentially lowering transaction costs and improving deal success rates.

Beyond technology, three macro‑level forces are reshaping strategic priorities. Post‑globalization pressures encourage firms to double down on high‑growth regions while shedding exposure elsewhere, using M&A and divestitures as rapid realignment tools. Simultaneously, shifting profit pools—driven by direct‑to‑consumer channels like streaming and social media—are disintermediating traditional players, prompting acquisitions to secure new revenue streams. As a result, executives are revisiting core assumptions, redefining portfolio boundaries, and positioning M&A as the engine for acquiring capabilities that can’t be built organically. The convergence of robust deal flow, AI‑enhanced processes, and strategic imperatives suggests 2026 will be another banner year for global M&A activity.