Global mergers and acquisitions (M&A) are on track to maintain their upward trajectory in 2026, following a remarkable rebound in 2025 that saw deal values rise by 40% to reach $4.9 trillion, according to the latest report from Bain & Company. The consultancy’s annual Global M&A Report 2026 indicates that 80% of M&A executives anticipate sustaining or increasing their deal activity in the coming year.
Several key factors are expected to shape M&A strategies in 2026. These include technology disruption, global geopolitical shifts, and evolving portfolio strategies. With many traditional business models reaching their limits, companies are compelled to adapt and innovate.
Industry Insights and Strategic Forces
The report emphasizes that the convergence of technology disruption and geopolitical issues will play a critical role in driving M&A activity. As companies transition from merely reacting to these forces to proactively adjusting their strategies, M&A will become an essential tool for reshaping corporate portfolios. In fact, advancements in artificial intelligence (AI), robotics, and quantum computing are likely to have significant implications for dealmaking. Almost 50% of technology industry deals already feature an AI component, a trend that is expected to accelerate as firms seek to acquire both talent and innovative technologies.
Geopolitical factors continue to influence M&A strategies, particularly as companies reassess their global footprints in light of recent tariff shocks. Many firms are making bolder moves to solidify their positions in favorable markets while minimizing exposure to less stable areas. Additionally, the report reveals that over half of the companies surveyed are preparing assets for sale in the next few years to refocus their operations and capitalize on favorable market valuations.
The Role of AI in M&A
The integration of AI tools in M&A processes has surged, with 45% of executives reporting their use in 2025—more than double the figure from the previous year. About one-third of dealmakers are systematically employing AI or redesigning their processes to incorporate it. As companies recognize the potential of AI to enhance deal-making efficiency, over half of the respondents expect it to significantly change how deals are conducted.
Bain’s analysis identifies five key ways leading companies are leveraging AI in M&A: developing dynamic pipelines, improving accuracy in intelligence gathering, expediting synergies, reducing integration preparation work, and gaining deeper stakeholder insights. According to Suzanne Kumar, executive vice president of Bain’s global M&A and Divestitures practice, “AI is quickly becoming indispensable to M&A. Early adopters are gaining a concrete advantage when it comes to dealmaking.”
Capital Constraints and Strategic Priorities
Despite the positive outlook for M&A in 2026, firms face challenges related to capital availability. The proportion of capital directed towards M&A hit a 30-year low in 2025, as companies increased their reinvestment in capital expenditures and research and development. This heightened competition for capital necessitates disciplined approaches to value creation, according to Bain.
Bain’s report outlines five pivotal strategies for M&A in 2026:
1. **Ground M&A in the New Strategic Context**: Executives should evaluate whether M&A pathways will enhance competitiveness, accelerate capabilities, or facilitate exits when necessary.
2. **Make Big Bets Pay Off**: Companies that expanded significantly during the 2025 megadeals must ensure they create value by prioritizing integration and transformation processes.
3. **Take a Full Potential View in Due Diligence**: A rigorous, thesis-led approach to due diligence will help infrequent acquirers compete effectively with seasoned buyers.
4. **Build M&A Capability for the Next Chapter**: Investing in comprehensive M&A capabilities will position companies to compete for assets and deliver synergies more rapidly.
5. **Refresh Strategic Capital Allocation**: Maintaining a long-term perspective on capital planning is crucial for articulating the strategic role of M&A to investors.
Bain’s report also provides insights across various industries, including banking, oil and gas, and software. In 2025, banking M&A surged to $212 billion due to favorable regulatory conditions and modernization needs. The oil and gas sector saw record consolidation efforts, while software companies increasingly pursued AI assets to enhance innovation and product capabilities.
With a focus on strategic M&A across 13 industries and 10 regions, Bain & Company continues to highlight the evolving landscape of global deal-making. Their comprehensive analysis serves as a valuable resource for executives navigating the complexities of M&A in a rapidly changing environment.
