Global mergers and acquisitions (M&A) are set to maintain strong momentum in 2026, following a remarkable rebound in 2025, according to Bain & Company’s latest annual report. The report reveals that M&A activity surged by 40% to reach $4.9 trillion last year, marking the second-highest deal value on record. A survey conducted by Bain among 300 M&A executives shows that 80% of respondents anticipate sustaining or increasing their deal activity in 2026.
The outlook for M&A is shaped by several influential factors, including technology disruption, geopolitical shifts, and evolving portfolio strategies. As businesses face the pressing need to adapt, M&A is expected to play a pivotal role in this transformation. According to Suzanne Kumar, executive vice president of Bain’s global M&A and Divestitures practice, “The ingredients are in place for another robust year in M&A following last year’s near-record rebound.”
Key Factors Influencing M&A Activity
The forces driving M&A activity are becoming increasingly evident. Technology disruption, particularly advancements in artificial intelligence (AI), robotics, and quantum computing, is profoundly affecting dealmaking. Bain’s report indicates that nearly half of all deals in the technology sector now incorporate an AI component. This trend is expected to continue as companies seek to acquire AI talent and technologies.
In addition, geopolitical dynamics and the implications of a post-globalization economy are reshaping M&A strategies. The tariff shocks experienced in 2025 prompted firms to reassess their global operations, leading to bolder moves that align with their strategic goals. Companies are increasingly looking to M&A to realign their portfolios, with more than half of the executives surveyed preparing assets for sale in the coming years to focus on core operations and take advantage of favorable market valuations.
AI’s Role in M&A
The integration of AI into M&A processes has accelerated significantly, with Bain’s survey revealing that 45% of executives utilized AI tools in 2025, more than double the previous year. About one-third of dealmakers are systematically employing AI or redesigning their processes to incorporate it. Executives believe that AI will significantly change deal-making practices, enhancing efficiency and value creation throughout the M&A cycle.
Key applications of AI in M&A include creating dynamic pipelines, improving accuracy in external intelligence, and facilitating faster synergy realization. Kumar highlights the importance of AI, stating, “Early adopters are gaining a concrete advantage when it comes to dealmaking.”
Capital Constraints and Strategic Focus
Despite the favorable outlook for M&A, companies face significant challenges, particularly regarding capital availability. The proportion of capital allocated to M&A recently reached a 30-year low, as firms increasingly prioritize reinvestment in capital expenditures and research and development. As competition for capital rises, Bain emphasizes the need for disciplined reinvention and value creation.
To navigate this landscape, Bain outlines five strategic priorities for M&A in 2026:
1. **Ground M&A in the new strategic context**: Companies must evaluate whether M&A decisions align with competitive market dynamics.
2. **Ensure value creation from large deals**: Companies that expanded significantly during the 2025 megadeal wave need to implement effective integration strategies to realize value.
3. **Conduct thorough due diligence**: With capital being limited, due diligence should confirm that pursuing M&A is the best use of financial resources.
4. **Build M&A capabilities**: Investing in end-to-end M&A capabilities will position companies for competitive advantage in asset acquisition and value realization.
5. **Refresh strategic capital allocation**: A long-term view of capital planning is essential, with regular updates to align strategic investments across various initiatives.
Industry Insights
Bain’s report also highlights trends across multiple industries and regions, reinforcing the diverse landscape of M&A activity. The banking sector, for example, saw M&A deal value soar to $212 billion in 2025, driven by favorable regulatory conditions and the need for modernization. In the oil and gas industry, record levels of consolidation occurred as companies sought to optimize operations amid fluctuating commodity prices.
Similarly, the software industry experienced a surge in AI-related acquisitions, with nearly half of tech deals involving AI components. This shift underscores the growing importance of revenue synergies in software transactions. The report covers strategic M&A trends across thirteen industries and ten geographic markets, including Australia, Canada, the United States, and the Eurozone.
In conclusion, the M&A landscape is poised for continued growth, propelled by evolving market conditions and the integration of advanced technologies. Companies are recognizing the necessity of strategic alignment and the value of M&A as they navigate an increasingly complex global environment.
