Dealmakers Are Preparing For a 2026 Recovery

SS&C Intralinks’ newly published H2 2026 Global M&A Dealmakers Sentiment Report, a survey of more than 400 mergers and acquisitions (M&A) professionals globally conducted in partnership with Reuters Events, reveals growing optimism that market turbulence will ease as 2026 progresses.

After a challenging start to the year brought on by the U.S. war in Iran as well as other geopolitical tensions, dealmakers are entering H2 with a more optimistic outlook on M&A and financing activity.

While 45 percent of surveyed corporate, private equity (PE) and advisory professionals we surveyed expected increased M&A and financing activity in the first half of 2026, nearly two-thirds (60 percent) now anticipate higher deal flow over the full year, signalling rising confidence that near-term volatility will give way to more stable market conditions. 

“If I just look at our deal flow at the moment, in terms of the number of deals and ones that we were taking seriously, it's probably the strongest it's been in 2025,” observes Gary Tipper, co-founder and group managing partner at Palatine Private Equity LLP in the report. “Is it back at the levels it was? No, but it certainly has improved.” 

Deal volume expectations underscore this building momentum. While only 19 percent of respondents anticipated working on four or more transactions in H1 2026, nearly half (43 percent) now expect to do so in the second half — a dramatic shift that points to dealmakers positioning themselves for action as market conditions improve. 

Digital transformation takes center stage 

Beyond the improving sentiment, a fundamental strategic recalibration is reshaping how dealmakers are approaching transactions. Digital transformation has emerged as the dominant catalyst for M&A activity over the one- to three-year horizon, commanding attention from 46 percent of dealmakers and making it the single most important driver of deal activity over the medium-term. 

This focus reflects widespread recognition that technological sophistication increasingly determines competitive outcomes across virtually all industries. Building internal artificial intelligence (AI) and data capabilities represents the single biggest organizational focus for the next 12 months, cited by 30 percent of respondents, as the technology progresses from experimental projects toward wholesale integration. 

Peter Banks, partner and private equity sector lead for Europe at A&O Shearman, notes in the report how private equity funds are now deploying in-house AI and data science teams to identify business transformation opportunities. “Data-heavy businesses are quite attractive targets for them, especially if they are yet to undergo that disruption,” Banks observes. The rapid maturation of AI integration is striking. A significant majority (81 percent) of organizations have moved beyond limited pilot projects to at least partial integration, with dedicated finance AI products delivering the most value to dealmaking processes, according to 54 percent of respondents. 

Strategic positioning across multiple factors 

The improving outlook is reshaping dealmaker priorities across several dimensions. Transaction size expectations tell a nuanced story: while the near term continues to favor middle-market deals valued under two billion dollars, appetite for larger transactions appears to strengthen over the next 12 months, marking a notable evolution that suggests more transformative deals could continue to emerge as market uncertainty begins to ease. 

Geographic expansion has emerged as a unifying theme, with dealmakers across corporate, private equity and advisory segments prioritizing entry into new markets as conditions stabilize. The continued shift away from North American markets remains notable, with Europe and Asia maintaining positive growth expectations as dealmakers pursue diversification strategies. 

Meanwhile, the Technology, Media and Telecommunications sector receives the highest growth expectations over the next 12 months, reflecting sustained conviction that digital transformation represents an enduring rather than cyclical trend. This sectoral confidence persists despite concerns about AI investment valuations, as dealmakers view current conditions as creating potential entry opportunities for well-structured transactions. 

The road to growth 

Despite renewed optimism, the path to recovery remains complex. Financing conditions continue to rank among dealmaker concerns, while political instability continues to be the leading challenge to deal completion. This is perhaps indicative of how geopolitical disruption has become a more permanent feature of the dealmaking environment rather than a temporary headwind. 

Yet these challenges are prompting considered responses. Dealmakers are prioritizing comprehensive due diligence, improving integration planning and increasingly leveraging technology in risk assessments. The use of virtual data rooms has expanded meaningfully, a reflection of heightened cybersecurity concerns and the level of digital sophistication expected of dealmakers today. 

As we progress through the second half of 2026, one narrative emerges clearly: this is a market poised to become even more competitive as firms look to deploy vast troves of accumulated dry powder. Organizations that have used recent uncertainty to strengthen operational capabilities, refine investment strategies and build technological sophistication will be positioned to capitalize as conditions normalize.

For dealmakers with the vision to maintain readiness while others hesitate, the second half of 2026 presents not paralysis, but a window of significant opportunity. 

Click here to download the full report.