Global M&A Boom Continues into 2026 Amid Capital Constraints

The global mergers and acquisitions (M&A) landscape is experiencing a significant boom as 2026 unfolds, building on the momentum established in 2025. The total value of M&A transactions surged by 40% to reach $4.9 trillion in 2025, marking the second-highest level on record, only behind the $5.6 trillion peak in 2021. This resurgence is largely attributed to a renewed focus on artificial intelligence (AI) and improved macroeconomic conditions, as companies reassess their portfolios in light of geopolitical risks and economic fragmentation.

CNBC

A survey conducted by Bain & Company revealed that 80% of M&A executives anticipate maintaining or increasing deal activity in 2026, driven by a backlog of private equity and venture capital assets awaiting exit. Goldman Sachs' poll of 600 corporate and financial clients indicated that 57% view scale and strategic growth as the primary motivators for deal-making this year. Jake Henry, global co-leader of McKinsey's M&A Practice, noted a shift in sentiment as companies transition from apprehension over trade policies to a "fear of missing out" on potential growth opportunities.

CNBC

Despite the strong appetite for deals, the availability of discretionary capital is at a historic low, compelling executives to pursue transactions that promise clear returns. The proportion of capital allocated to M&A fell to a 30-year low in 2025, as companies prioritized dividends, buybacks, and capital expenditures. This funding squeeze has elevated the role of private capital in deal-making, with private equity firms now accounting for approximately 40% of global M&A activity. The private credit market, valued at around $2.1 trillion, is expected to more than double by 2030, further expanding the capital pool for large transactions.

CNBC

The M&A landscape is being notably influenced by mega-deals, particularly those valued over $5 billion, which constituted over 73% of the increase in deal value in 2025. The number of transactions exceeding the $10 billion mark reached 60 last year, the highest since 2021. This trend underscores the growing demand for AI-related investments, as companies seek to innovate and adapt to technological disruptions.

CNBC

While optimism prevails, there remains a cautious sentiment among executives. The Boston Consulting Group's M&A sentiment index, although rebounding to 75, still falls short of the long-term average of 100, indicating a careful approach to deal-making. Executives are urged to focus on disciplined reinvention and value creation amid competing capital demands.

CNBC

• "As abrupt shifts in trade policies settled into a pattern of less threatening change, relief turned into confidence and then a fear of missing out." — Jake Henry, Global Co-leader, McKinsey's M&A Practice

CNBC

• "As competing demands for capital raise the bar for deals, disciplined reinvention and value creation are essential." — Suzanne Kumar, Executive Vice President, Bain's Global M&A Practice

CNBC

The ongoing M&A boom reflects a complex interplay of strategic growth ambitions, capital constraints, and the transformative impact of AI, shaping the future of corporate transactions in 2026 and beyond.

CNBC