Core Insights - The recent surge in M&A deals is expected to continue into 2026, but the sustainability of this trend is uncertain due to geopolitical disturbances and tariff volatility [2][3]. M&A Market Trends - Eight mega-deals valued over $10 billion closed in Q3 2025, marking the highest number in any quarter since Q4 2018 [4]. - The market for large deals (over $1 billion) also experienced significant growth during this period [4]. Buyer Motivations - In 2026, large-scale M&A is anticipated to focus on de-conglomeration and portfolio optimization rather than high-risk transformative deals [5]. Sector Focus - Key sectors expected to attract interest include energy, defense, biopharma, and technology, while consumer-focused businesses may face challenges due to cost-of-living pressures [6]. Technology Startups - Technology startups aiming for acquisition in 2026 must demonstrate their ability to access payroll budgets, which are significantly larger than software budgets, to achieve high valuations [7].