M&A outlook for 2026: what is likely to change in the year ahead
Rahid Rashid, 3 February 2026
Rahid Rashid, 3 February 2026
As we move into 2026, the mergers and acquisitions (M&A) landscape is expected to continue its strong growth trajectory, building on the momentum seen in the latter half of 2025, particularly across the UK and other major international markets.
According to recent research by WTW in partnership with the M&A Research Centre at Bayes Business School, the M&A market is on track to achieve its best-performing year since the boom that followed the pandemic.
As we look ahead, five key trends are expected to shape the M&A environment in 2026, offering insight into what businesses should anticipate and how they can position themselves for growth.
Many would agree that 2025 was a fairly turbulent year as the world faced geopolitical tensions and tariff volatility. However, M&A activity surged in the second half of the year in the UK as buyers adapted to this uncertainty, learning how to work around it more effectively.
With lower financing costs and rising confidence in future growth, businesses are recalibrating their approach to deals, according to the WTW study and similar sentiment from Goldman Sachs.
As uncertainty continues into 2026, robust due diligence will remain critically important to ensure transactions are appropriately derisked and aligned with long-term strategy.
The end of 2025 saw some of the biggest megadeals – those valued at more than $10 billion – since late 2018, according to data from Goldman Sachs.
This increase in large deals signals growing optimism in the market. In 2026, large-scale M&A will likely be driven by a desire to optimise portfolios through ‘buy and build’ strategies.
Experts expect that the next 12 months will see an increase in companies making smaller, complementary acquisitions that allow them to scale quickly and capitalise on innovation being developed by others.
North America has always been an M&A superpower, but 2025 saw this region experience a significant rebound when compared to markets in Europe and Asia-Pacific.
Experts believe that this momentum is likely to be carried well into 2026 as North American companies seek out domestic and international targets, driven by robust GDP growth and favourable financing conditions.
Private equity-backed deals are set to rise in 2026, spurred by over $2 trillion in undeployed capital and more favourable exit opportunities.
The use of continuation funds will accelerate, moving from a niche to a mainstream strategy.
Continuation funds enable private equity firms to transfer assets from maturing funds into new vehicles, allowing existing investors to cash out, while fresh capital is injected into the deal.
AI’s role in M&A has expanded rapidly, enhancing dealmaking efficiency and improving due diligence.
However, AI introduces new risks, such as challenges in adoption and governance, that companies will need to address in order to unlock its full potential.
The M&A market in 2026 promises to be a year of opportunity, with a focus on scale, innovation and market expansion, though businesses must be prepared for longer timelines and more complex deal structures.
Our UK-based corporate finance team advises owner-managed businesses, corporates and investors on mergers, acquisitions and strategic transactions. We support clients at every stage of the deal lifecycle, from initial planning and valuation through to due diligence, negotiation and completion.
Whether you are considering acquiring a business, preparing for a sale, or exploring growth through M&A, our team provides practical, commercially focused advice tailored to your objectives. For a confidential discussion, get in touch with our Corporate Finance team.
