Global mergers and acquisitions outperformed non-dealmakers in the first nine months of the year based on share price performance, positioning the market for a more active 2026, according to research from WTW and the M&A Research Centre at Bayes Business School.
The global broking giant noted that with these current trends, dealmakers are already shaping strategies around next year’s conditions.
WTW attributes much of 2025’s activity to pent-up demand, stock market highs and relatively stable interest rates, which have supported a late-year surge and a stronger pipeline. Jana Mercereau (pictured above), head of Europe M&A consulting at WTW, said acquirers now need to assess how those drivers, together with tariffs and regulation, will influence opportunities and execution risk in 2026.
Mercereau said that “after a turbulent start to 2025 marked by aggressive tariff policies and geopolitical tensions, the recent M&A surge suggests a recalibration in the market.” She added that buyers have “learned to normalise and move through uncertainty, supported by lower financing costs and increased confidence in future growth prospects.”
For 2026, she said persistent tariff volatility, geopolitical rifts and regulatory hurdles will make early integration planning during due diligence a critical test for maintaining value.
Large cap dealmaking is expected to remain a feature next year. “Eight megadeals (valued over US$10 billion) closed in the third quarter of 2025, the highest since the final three months of 2018,” Mercereau said, pointing to a similar rise in deals over US$1 billion as a sign of confidence. She expects more portfolio-focused “buy and build” strategies, with acquirers prioritising bolt-on and adjacent acquisitions over single transformative transactions.
That emphasis on scale and core capabilities is also visible in insurance-sector transactions heading into 2026, where buyers are using M&A to reshape existing platforms rather than diversify into unrelated lines.
Recent analysis shows that while global insurance deal volumes have fallen year over year, total announced values have risen, driven by a small number of sizable transactions that are redefining market positions and balance sheets.
Read more: The new M&A reality
Mercereau said energy, defence, biopharma and technology assets “will continue to attract healthy interest in 2026,” while cost-of-living pressures have weighed on consumer-facing sectors. She expects a gradual improvement in the consumer deal pipeline as tariff-related uncertainty eases and financing conditions stabilise.
Private equity is expected to remain a significant driver next year, backed by more than US$2 trillion in undeployed capital, better exit options and more flexible debt markets. WTW said continuation funds are moving into the mainstream and are likely to feature more in 2026 structures, enabling sponsors to roll selected assets into new vehicles while offering liquidity to existing investors.
Mercereau also highlighted artificial intelligence as a key factor in how deals will be sourced, evaluated and integrated in 2026.
“AI has rapidly emerged as a game changer in the fast-paced M&A world,” she said, with corporates using it to identify targets, deepen due diligence and streamline integration, while still needing governance and human oversight “to unlock the full potential of AI in M&A.”
