Dealmaker sentiment for 2026: insights and opportunities in M&A

The M&A landscape faced significant headwinds in 2025, but a new wave of strategic optimism is emerging as dealmakers position themselves for opportunities in 2026. According to SS&C Intralinks' latest Global M&A Dealmaker Sentiment Report, developed in partnership with Reuters, the market is experiencing a fundamental shift in how transactions are being approached and executed.

Understanding the research

The sentiment report draws on insights from over 400 M&A dealmakers surveyed in Q2 2025, representing a truly global perspective on the market. The respondent base included:

• Nearly half from private equity firms
• The remainder split between corporates and advisory services/investment banks
• Geographic distribution spanning North America (25%), Europe excluding UK (20%), Asia Pacific (17%), and UK (17%)

All participants are actively involved in M&A, debt financing, or equity financing markets, ensuring the data reflects real-world deal activity rather than theoretical perspectives.

A new kind of optimism

The numbers tell an interesting story. While 41% of dealmakers expect M&A activity to increase in the first half of 2026, this optimism doesn't stem from perfect market conditions. Rather, it reflects a more calculated, strategic approach to dealmaking.

Notably, 30% still anticipate activity to decline in the near term, revealing a market that remains divided. What's changed is the mindset. Dealmakers are no longer waiting on the sidelines for ideal conditions. Instead, they're actively positioning themselves to move quickly when windows of opportunity open.

This represents strategic patience rather than paralysis. Dealmakers have become comfortable navigating persistent challenges like difficult financing conditions and geopolitical uncertainty. They're structuring deals differently, being more selective about timing, and building relationships now to execute faster later.

The private equity advantage

Private equity firms show notably more bullishness than their corporate counterparts, and for good reason. Policy changes are creating new opportunities, particularly in the United States where an August 2025 executive order opened 401(k) access to private equity investments for the first time. This regulatory shift introduces a significant systemic inflow of new capital at a time when fundraising cycles have lengthened and deal activity has softened.

Corporate dealmakers, by contrast, are taking a more conservative stance:

• 30% are focused on corporate streamlining and divesting assets to maintain agility
• Many show a notable preference for joint ventures, seeking shared risk and flexibility
• Strategic positioning centers on weathering potential economic difficulties

The financing challenge

Perhaps the most striking finding is that 52% of dealmakers expect financing conditions to become even more difficult over the next 12 months. More revealing still, 43% identify financing as the most difficult phase of the entire transaction process, surpassing even negotiation challenges.

Elevated interest rates and cautious lending have evolved from temporary obstacles into structural features of the market. Dealmakers are no longer waiting for these conditions to pass. Instead, they're adapting.

The rise of private credit

Private credit has emerged as a legitimate alternative pathway, with nearly half of private equity firms expressing serious interest in these opportunities. This shift is reshaping deal structures and influencing where dealmakers seek opportunities.

However, there's an important caveat. While private credit fills critical gaps, it cannot fully replace properly functioning syndicated loan markets. Both mechanisms need to work effectively for M&A to truly thrive.

Who benefits in this environment

The financing landscape creates winners and losers. Strong balance sheets matter more than ever, driving consolidation opportunities that benefit well-capitalized acquirers. At the same time, inflation presents a double-edged sword. Over 40% of dealmakers expect positive impacts on dealmaking from inflation, while more than a third anticipate negative consequences.

This split suggests that inflation's impact depends heavily on sector exposure and strategic positioning. It could drive consolidation in some areas while creating valuation challenges that slow deals in others.

Geographic shifts in sentiment

For the first time in several years, Europe and the Middle East have eclipsed North America as the favored regions for dealmaking. This represents a significant departure from historical patterns.

Europe, excluding the UK, posted a net favorability score of positive 3% for the first half of 2026, with the UK showing similar results. North America, by contrast, came out flat at 0%. The driver? Uncertainty.

Why Europe looks attractive

Dealmakers view Europe as a haven from the policy volatility and unpredictability plaguing the US market. While Europe has its own challenges, there's a sense that the rules are clearer and the trajectory more predictable. This predictability breeds confidence.

This sentiment is validated by SS&C Intralinks' annual LP survey, which surveyed nearly 300 investors, asset managers, family offices, pension funds, and sovereign wealth managers. That research showed a strong pivot to Europe in 2026 as well.

Opportunities beyond Europe

The geographic story extends beyond Europe. Asia, China, and Japan all show positive sentiment. China's results are particularly noteworthy given the noise surrounding that market. Additionally, nearly half of corporate dealmakers are focused on expanding into new geographic markets, actively moving capital to match these views.

The regulatory timing factor

A fundamental shift is occurring in how dealmakers approach timing. Completing transactions before tax and regulatory environments tighten has emerged as a leading near-term deal driver, cited by 32% of respondents. This ranks even ahead of traditional drivers like capturing synergies or geographic expansion.

Dealmakers are no longer primarily timing deals based on attractive valuations or cheap financing. Instead, they're timing based on policy cycles. A “window of opportunity” mentality has taken hold, with an almost “act now or forever hold your capital” approach.

Why this matters

Several factors drive this urgency:

• The UK-EU Competition and Cooperation Agreement is increasing regulatory burden on cross-border deals
• Multiple jurisdictions are implementing tax changes to shore up public finances
• Economic conditions remain stagnant in many regions

Dealmakers are frontloading activity, trying to get deals across the line while conditions are more favorable, even if they aren't perfect in other respects. This represents optimization for policy timing rather than market timing, a fundamental change in how M&A gets executed.

Digital transformation as strategic catalyst

Digital transformation has emerged as a dominant strategic catalyst for M&A activity, cited by 33% of respondents. What's remarkable is the speed at which AI adoption has accelerated in the dealmaking community.

From experiment to integration

The numbers reveal a dramatic shift:

• 40% of dealmakers report AI tools are fully integrated across most deal stages
• 41% have partial integration in select stages
• Only 17% remain in pilot or experimental phases

This represents a rapid move from testing to operational deployment. The financial services sector, once skeptical of cloud technology, has embraced AI at an accelerating pace. Banks quickly recognized AI's potential and sought first-mover advantage.

Practical applications in dealmaking

AI is touching every phase of the deal lifecycle.

Deal preparation

• Automated document summarization and categorization
• Verification that requested documents match criteria
• Elimination of hours of manual analyst work

Due diligence

• AI-assisted redaction of personally identifiable information
• Document review and analysis
• Cross-deal analytics for proactive insights

Q&A process

• Identification of repeat questions with suggested answers
• Answer generation based on deal room content
• Real-time translation capabilities across languages

Valuation and analysis

• DCF valuations based on financial documents in the deal room
• Risk assessment
• Deal structuring support

One particularly compelling example involves a dealmaker working on a deal with primarily English content but a native Hebrew-speaking buyer. The buyer interacted with the AI in Hebrew, querying English documents in real time. This kind of seamless cross-language functionality demonstrates how AI is fundamentally changing deal execution.

Strategic acquisition of AI capabilities

Organizations aren't just using AI to make existing processes faster. They're pushing acquisitions specifically to acquire capabilities critical for the future. Building AI capabilities from scratch is time-consuming, capital-intensive, and unpredictable. Buying into digital transformation offers a faster path.

Dealmakers show strong preference for finance-specific AI products rather than general-purpose tools. Industry-specific applications deliver the most value, particularly in areas like valuation, deal structuring, due diligence, and risk assessment.

Private equity's bullish stance

Private equity stands out for its optimism, and the reasons are both structural and strategic.

Structural advantages

PE firms have been sitting on record amounts of dry powder, facing increasing pressure to deploy capital even in challenging conditions. But this deployment is highly strategic:

• 53% are targeting recession-proof industries like healthcare
• Many focus on sectors benefiting from geopolitical developments, such as defense
• 43% are exploring private credit opportunities

These firms aren't waiting for perfect conditions. They're actively hunting in sectors they believe can weather economic turbulence.

Technological sophistication

Many PE funds are building in-house AI and data science teams, giving them an edge in deal sourcing, evaluation, and execution. This technological sophistication, combined with strategic sector focus and access to new capital sources like 401(k) investments, positions private equity to capitalize on opportunities as they emerge.

Sector focus: TMT and financial services lead

Despite concerns about AI investment valuations and tech sector volatility, technology, media, and telecommunications (TMT) remains among the sectors with the highest growth expectations. Business and financial services also remain highly attractive, posting around a positive 8% favorability mark.

Looking through short-term noise

While legitimate concerns exist about near-term profitability in tech and stretched valuations, dealmakers are looking through the short-term noise to focus on longer-term opportunities. The reality is that digital transformation is no longer optional. It's an existential threat and opportunity for businesses across every sector.

Whether in financial services, healthcare, or manufacturing, companies need digital capabilities to compete. Even if valuations come down from recent peaks, that's not necessarily bad for dealmakers looking to enter at more reasonable prices. Current conditions might actually create better entry opportunities for well-structured transactions.

Positioning for success in 2026

The question is no longer whether conditions will improve, but whether organizations have positioned themselves to take advantage when they do. Success in 2026 requires action across several dimensions.

Get financing strategies sorted now

Understand your access to capital, whether through traditional debt, private credit, or balance sheet capacity. Don't wait until you've found the perfect target to figure out funding.

Execute strategically

Be selective. Just over three-quarters of dealmakers expect deals postponed in previous years to restart within 12 months. When conditions become more conducive to dealmaking, there will be a wave of activity. Winners will be those who've done their homework, have clear targets driven by growth thesis, and can move decisively.

Invest in capabilities

Technology: AI integration and data analytics aren't future considerations. They're determining competitive advantage right now.

Talent: Build teams that can navigate complexity, understand cross-border regulatory landscapes, and structure creative deals in tough environments.

Prepare for integration

Executing and completing the deal is just the first part. Success carries through to post-merger integration. Have teams ready not just to execute diligence but to integrate acquisitions and realize opportunities fully.

The path forward

The M&A market in 2026 won't be defined by perfect conditions. Instead, it will reward those who've prepared strategically, invested in the right capabilities, and positioned themselves to move quickly when opportunities arise.

With record dry powder waiting to be deployed, regulatory windows creating urgency, and AI fundamentally changing how deals get done, the organizations that thrive will be those that embrace strategic patience while maintaining operational readiness.

The deals that were paused aren't terminally stalled. They're waiting for the right moment. When that flurry of activity comes, preparation will separate those who capture outsized value from those left behind.