Core Insights - The M&A outlook for 2026 remains strong despite rising geopolitical and macroeconomic challenges, with 72.6% of advisors expecting an increase in deal flow [5] - Geopolitical factors have overtaken inflation as the primary concern impacting business operations, marking a significant shift in advisor sentiment [5] M&A Market Trends - A 6.4% year-over-year decline in expected M&A deal flow is noted, yet optimism persists among investment bankers [5] - Interest rate cuts in various regions have kept the private equity M&A outlook elevated, with 45.3% of bankers expecting an increase in sponsor dealmaking [5] - Market volatility and economic uncertainty are seen as the top factors delaying deal closings, with 56.6% of advisors highlighting this concern [5] Deal Characteristics and Valuations - Advisors anticipate a rise in global expansion (+7.8% YOY) and vertical integration (+5.1% YOY) deals, while expectations for recapitalizations (-12% YOY) and capital raises (-10.7% YOY) have decreased [5] - 66% of investment bankers indicate that recurring revenue will be the most important characteristic for acquirers in 2026 [5] - 25.5% of advisors expect M&A transaction multiples to moderately rise, while 66% foresee little to no change in multiples [5] Seller Considerations - Realistic deal valuations are identified as crucial for sellers to achieve successful M&A transactions, aligning with 48.1% of advisors who believe excessive valuation expectations may hinder deal closings [5]