M&A professionals predict a continued market upswing in 2026

Group 1 - By the end of 2025, the total value of announced M&A transactions by U.S. companies is expected to surpass 2024 results in each quarter, indicating strong expectations for 2026 [1] - A survey by KPMG revealed that 66% of 300 M&A dealmakers anticipate an increase in pipeline volume for 2026 compared to 2025, with only 5% expecting a decrease [2] - 74% of respondents believe the quality of deal opportunities will improve in 2026, while only 4% foresee a decline [2] Group 2 - Key motivations for pursuing M&A include expanding into new markets (66%) and growing core business (58%), with 74% considering full business acquisitions [3] - 49% of participants are exploring joint ventures or strategic partnerships, while 45% are looking at carve-out acquisitions [3] - The primary reasons for joint ventures include accessing new capabilities and technology, sharing risks, and enabling strategic flexibility [4] Group 3 - 29% of respondents identified incentives for domestic investment as favorable for dealmaking, while 25% pointed to interest rate and monetary policy [4] - Political uncertainty (25%) and the federal government shutdown (22%) were seen as the least favorable conditions for M&A [4] - The 43-day government shutdown led 33% of survey participants to increase diligence for deals in regulated industries, with many re-evaluating financial forecasts and postponing transactions [5] Group 4 - Technology advancements, particularly generative AI, are enhancing efficiency in M&A processes, with 57% reporting efficiency gains of 11% to 25% in target screening [6] - Approximately half of the respondents experienced similar efficiency gains in due diligence and competitive intelligence/market analysis [6]