The big picture: The M&A market is on track for its best year since the post-pandemic boom, fueled by pent-up demand and more stable interest rates.

Eight megadeals, valued at over $10 billion, closed in the third quarter of 2025, the highest number since late 2018.
According to the report, buyers have learned to "normalize and move through uncertainty," though geopolitical tensions and tariff volatility will remain persistent challenges.
"Early integration planning during the due diligence phase may prove one of the toughest tests for buyers looking to lock in gains and drive long-term, sustainable growth,” said David Dean, Managing Director of M&A Consulting at WTW.

Zoom in: The report notes a key strategic shift toward a "buy and build" approach, where companies make smaller, complementary acquisitions to expand quickly and integrate new technologies.

This "back-to-basics" strategy is expected to gain traction, particularly in mid-market deals, as companies focus on core strengths.
Energy, defense, biopharma, and technology are projected to be the most active sectors for deals in the coming year.

State of play: While M&A performance improved in Europe and Asia-Pacific, the most significant turnaround was in North America, which saw positive results after 10 consecutive negative quarters.

WTW attributes the U.S. rebound to robust GDP growth and the Federal Reserve signaling potential rate cuts, which are easing financing conditions.

What to watch: Two key trends are expected to shape the dealmaking landscape in 2026.

Private equity: PE-backed deals are expected to increase, supported by over $2 trillion in undeployed capital. The use of "continuation funds"—which allow firms to roll assets from maturing funds into new vehicles—is moving from a niche strategy to a mainstream practice.
The AI factor: The report identifies AI as a "game changer" for accelerating dealmaking, from target scouting to integration. However, it also introduces new risks around adoption, governance, and the reliance on human expertise that dealmakers will need to manage.

SOURCE: WTW

SURVEY: M&A Poised for Strong Rebound in 2026

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