Global mergers and acquisitions (M&A) are anticipated to sustain their momentum in 2026, following a substantial rebound in 2025 that saw deal values rise by 40% to an impressive $4.9 trillion. This information comes from Bain & Company’s annual Global M&A Report 2026, which highlights the optimism among M&A executives regarding future deal activity. According to a survey conducted by Bain, 80% of executives expect to maintain or increase their M&A efforts in the coming year.
This optimistic outlook is supported by improving macroeconomic conditions and a backlog of private equity and venture capital assets that are poised for exit. Many industry leaders acknowledge that traditional business models have reached their limits, creating a pressing need for companies to innovate and adapt.
Suzanne Kumar, executive vice president of Bain & Company’s global M&A and Divestitures practice, stated, “The ingredients are in place for another robust year in M&A following last year’s near-record rebound. Companies urgently need to reinvent themselves to get out ahead of the big forces of technology disruption, a post-globalization economy, and shifting profit pools. M&A will play a pivotal role in this reinvention in 2026.”
Key Forces Shaping M&A in 2026
Several factors are expected to influence M&A strategies in 2026. The impact of technology disruption, geopolitical changes, and the evolving landscape of profit pools are becoming increasingly critical. As firms transition from reactive to proactive strategies, M&A is likely to be a vital tool for reshaping business portfolios.
Technology disruption, driven by advancements in artificial intelligence (AI), robotics, and quantum computing, is expected to significantly influence deal-making. The report indicates that nearly half of all deals in the technology sector already involve an AI component. As companies seek to acquire AI-related talent and technology, this trend is set to accelerate. Non-technology firms are also expected to pursue M&A to enhance their technological capabilities.
Geopolitical dynamics and the realities of a post-globalization economy will further guide M&A strategies. The tariff shocks experienced in 2025 have highlighted the need for businesses to reassess their global operations. Companies will increasingly engage in M&A to consolidate their positions, focusing on stronger regions while reducing exposure to less advantageous markets.
Bain’s report emphasizes the growing necessity for companies to align their portfolios with industry evolution. More than half of the executives surveyed are preparing assets for sale in the coming years. This shift is motivated by a desire to sharpen focus, free up cash, and capitalize on favorable market valuations.
AI Adoption in M&A
The report reveals a significant uptick in the adoption of AI tools in M&A activities. In 2025, 45% of executives reported using AI, more than double the previous year. Approximately one-third of dealmakers are either systematically employing AI or redesigning their processes to incorporate it. The majority of executives anticipate that AI will have a significant impact on the M&A process.
Leading companies are leveraging AI in various ways to enhance value extraction from M&A activities. These include creating dynamic deal pipelines, improving accuracy in market intelligence, expediting synergy realization, reducing integration preparation work, and gaining deeper insights from stakeholders. Kumar remarked, “AI is quickly becoming indispensable to M&A. Early adopters are gaining a concrete advantage when it comes to dealmaking.”
Despite the positive outlook, a key challenge remains: the high demand for capital. The proportion of capital allocated to M&A reached a 30-year low, even as deal-making surged in 2025. Companies are increasingly directing funds toward capital expenditures and research and development, necessitating disciplined approaches to reinvention and value creation.
As firms navigate these dynamics, Bain identifies five pivotal strategies for M&A in 2026:
1. **Ground M&A in a new strategic context**: Executives should evaluate whether M&A pathways will enhance competition in attractive markets, accelerate capability building, or facilitate exits when necessary.
2. **Ensure big bets pay off**: Firms that expanded significantly during the 2025 megadeals must focus on value creation. A well-defined integration thesis will help prioritize stabilization, integration, and transformation efforts.
3. **Adopt a full potential view in due diligence**: With capital constraints, due diligence should confirm that M&A represents the best use of resources. A rigorous, thesis-driven approach can provide a competitive edge for less frequent acquirers.
4. **Build M&A capabilities for the future**: Investing in comprehensive M&A capabilities now will better position companies for future transactions, improving their ability to deliver synergies.
5. **Refresh strategic capital allocation**: Maintaining a long-term view of capital planning is essential. Companies should clarify their strategic investments in capex, M&A, and R&D to remain relevant.
Bain’s report also delves into industry-specific trends across 13 sectors and 10 regions, providing insights into how M&A is evolving in various contexts. The banking sector, for example, saw substantial growth in 2025, with M&A activity reaching $212 billion, driven by regulatory improvements and modernization needs.
As M&A continues to evolve, companies must adapt and embrace new strategies to navigate the complexities of the marketplace. The insights from Bain’s report are invaluable for executives aiming to leverage M&A as a catalyst for growth and reinvention in the coming year.