Goldman Sachs reports that the global mergers and acquisitions boom of 2025 continues into 2026. Deal-making activity surged 40% to $4.9 trillion last year, with expectations for sustained or increased activity in 2026. Companies are reassessing portfolios, focusing on scale, strategic growth, and future-proofing against geopolitical risks and economic shifts.

Despite a cautious start due to Trump’s tariffs, the total value of deals in 2025 reached $4.9 trillion, the second-highest on record. Central banks cutting interest rates, improved valuations, and increased spending on artificial intelligence fueled the rebound in deal-making activity. Markets anticipate the trend to continue as companies reassess portfolios amidst global changes.

Goldman Sachs topped the global M&A rankings in 2025, advising on nearly 40 deals worth $1.48 trillion, the strongest period for mega-deals by volume. While the M&A market shows momentum, companies remain cautious. The Boston Consulting Group’s M&A sentiment index rebounded but still reflects a cautious stance.

The funding squeeze in 2025 saw a 30-year low in the proportion of capital allocated to M&A, leading to private equity firms, private credit funds, and sovereign wealth funds playing a significant role in deal-making. Private equity now accounts for 40% of global M&A activity, with the private credit market expected to double by 2030.

AI-related demand is driving a resurgence in M&A with blockbuster deals valued at over $5 billion accounting for a significant portion of the increase in deal value in 2025. The number of deals exceeding $10 billion surged to the highest level since 2021, with expectations for more big deals in 2026 fueled by AI-related service providers.

Read more at CNBC: Global M&A stays strong in 2026 despite tightest capital squeeze in 30 years