Dealmakers Hold Their Nerve on M&A Despite Tariff Turbulence, Deloitte Finds

Why It Matters

The data signals that M&A pipelines stay robust, but firms are tightening execution discipline, especially for cross‑border deals, which could shape capital allocation and competitive positioning in 2026.

Key Takeaways

• 67% expect deal count to rise in next six months
• Cross‑border interest up, but only 20% are highly engaged
• UK tops as target, cited by >50% of corporates
• Top 10 deals hold 43% of Q1 deal value

Pulse Analysis

The Deloitte survey underscores a shift from the bullish optimism of late 2025 to a more measured, disciplined approach to mergers and acquisitions. While a solid majority of executives still anticipate growth in both deal count and total value, the dip in the “increase somewhat” sentiment reflects heightened scrutiny of macro‑economic headwinds such as lingering tariff uncertainties and tighter credit conditions. This cautious optimism suggests that companies are willing to pursue strategic transactions, but only when the risk‑reward calculus aligns with tighter boardroom expectations.

Cross‑border transactions are emerging as a key differentiator in the current landscape. Sixty‑five percent of respondents see international activity expanding, driven primarily by growth ambitions, financial optimization, and risk diversification. Yet only one‑fifth of dealmakers describe themselves as highly engaged, indicating that many firms are still evaluating the compliance, supply‑chain, tax, and synergy capture challenges that accompany overseas deals. The United Kingdom stands out as the preferred destination, with more than half of corporate respondents targeting the market, reflecting its stable regulatory environment and access to European customers post‑Brexit.

Deal concentration remains pronounced, with the ten largest transactions representing 43% of total deal value in Q1 2026. This concentration highlights the premium placed on scale and execution discipline over sheer volume. Sectors such as technology, media, telecom, and life sciences continue to dominate, suggesting that firms with deep pockets and sophisticated integration capabilities will capture the most value. As the second half of 2026 unfolds, the ability to navigate complex cross‑border risks while leveraging size will likely determine which companies emerge as M&A leaders.