Optimism over mergers and acquisitions (M&A) activity is running high at the start of 2026 among both corporate and private-equity dealmakers, including both buyers and sellers, according to a new survey by Deloitte.

More than 80 percent of the 1,500 corporate and private equity executives who participated in Deloitte’s 2026 M&A report said they expect both deal volumes and values to increase over the next 12 months.

Transaction volumes increased significantly in the second half of 2025 compared to the first half, according to the report.

Transaction values totaled $398 billion in the first quarter of 2025 and $389 billion in the following three months. They jumped 50 percent to $584 billion in the third quarter and extended the climb in the October-December period, increasing by 22 percent to $714 billion. This was likely driven by a small number of very large transactions, the report noted.

International Transactions May Take A Back Seat

While many believe the buoyant trend in deal volumes will continue, “expectations are more tempered for the coming year," according to Deloitte. Deal activity is correlated to the U.S. and global economy. Macroeconomic signals suggest that dealmakers should "exercise vigilance and pursue well-developed strategies at the start," the report added.

“Cross-border acquisitions decreased as a priority in 2025, amid volatile global economic and trade environments. Survey respondents with a majority of deals focused on cross-border transactions declined by 12 points, from 36% in 2024 to 24% in 2025,” the accountancy firm said in the report.

Volatile global economic conditions, tariffs, and economic uncertainty will likely continue in 2026 and therefore buyers and sellers are likely to show "more agility and pivoting with respect to international transactions this year," it added.

Macroeconomic Headwinds 

“The main macroeconomic headwinds in the new year are likely to include shifting US Fed monetary policy around interest rates, along with the expectation there will be a new Federal Reserve chair in 2026,” Deloitte said. “Slowly rising inflation, possibly driven in part by variable tariff impact, is a likely factor, along with some deterioration in unemployment and declining consumer and business leader confidence.”

One continuing concern for private equity dealmakers is the interest-rate environment. Rates are still above levels last seen in 2022, which makes debt "too costly" for some M&A leaders, the report said.

Regulation is another factor that affected M&A activity last year and will continue to do so in 2026. President Donald Trump's One Big Beautiful Bill Act, which became a law in July, created tax implications that could impact deal outcomes for both buyers and sellers.

Thirty-three percent of total U.S. deal value in 2025 was driven by 20 very large transactions, which took place mostly in the second half of the year and was the third-largest figure (approximately $2 trillion) of the past decade, the report continued.

Deloitte sees "ample opportunities" for small and medium-size deals for corporate and private equity dealmakers in 2026.

"These markets have been flat for a few years which indicates untapped potential and pent-up demand in this space," it said.

Artificial Intelligence

Nearly all of the respondents in the survey reported active artificial intelligence use across the M&A lifecycle, anywhere from screening and diligence, to post-acquisition integration. 

Dealmakers are also focusing on discerning how they can use AI in the post-acquision period. 

Most respondents (48 percent) to the survey indicated that AI would have a moderate impact on M&A decision making in the next two years, while 35 percent said it would have a significant impact.

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