The North American M&A market is experiencing a dramatic resurgence. Following a transformative 2025, the market enters 2026 with substantial momentum, buoyed by easing financial conditions, stabilizing valuations, and robust corporate and private equity pipelines. With M&A value reaching approximately $2.65 trillion in North America in 2025 (a 52% year-over-year increase), dealmakers are positioned for continued expansion, though navigating regulatory scrutiny and geopolitical complexities will remain critical.
North America dominated global M&A activity in 2025, accounting for just over half of all global deal value. The region witnessed unprecedented growth:
This rebound reflects a combination of factors: resilient GDP growth, easing financial conditions, bolstered CEO confidence, narrowing valuation gaps, and elevated private equity dry powder ready for deployment.
AI has emerged as the defining theme of M&A in 2026. Technology M&A surged 66–93% year-over-year, with AI-related transactions accounting for roughly 22% of all technology deal value in North America. Key developments include:
The market has witnessed a resurgence of transformational megadeals. Notable transactions include:
The AI infrastructure supercycle is fueling M&A across data center operators, power generation, HVAC, real estate, and supply chain logistics. Companies are acquiring to secure long-term resource access, mitigate operational risk, and capitalize on the explosive demand for AI compute and power. This trend is expected to be a major M&A driver in 2026, particularly as companies assess the sustainability of infrastructure investment waves.
International buyers are entering 2026 with robust appetite for North American assets:
Companies are pursuing more dynamic portfolio reviews. In 2025, divestiture value grew 30% to $1.6 trillion (the highest level since 2021), with the Americas accounting for nearly 58% of separations activity. This includes spin-offs, carve-outs, and strategic asset sales linked to major acquisitions.
Acquirers across sectors are pursuing scale, innovation, and AI-linked capabilities. Companies seeking to accelerate growth should prioritize acquisitions that provide immediate access to talent, proprietary models, and critical infrastructure. IBM’s $11 billion proposed acquisition of Confluent and Thermo Fisher Scientific’s $8.9 billion proposed acquisition of Clario exemplify strategic moves to build comprehensive data and analytics capabilities.
Industries continue to consolidate around cost leadership and market dominance. Healthcare, advanced manufacturing, and transportation present robust opportunities for roll-up strategies, operational improvements, and long-term cash flow stability through scale acquisitions.
Companies are expanding into adjacent, faster-growing segments by leveraging existing market presence and customer relationships. Recent trends highlight emphasis on hard infrastructure and capacity expansion to capture sustained demand, particularly where supported by long-term contracts and consistent consumption trends.
Private equity sponsors have substantial dry powder and face pressure to monetize aging portfolio companies. Innovative financing structures, including continuation vehicles, partial exits, and sponsor-to-sponsor sales, have emerged as dominant strategies. Traditional middle-market buyouts are expected to rebound as rate visibility improves.
Regulatory scrutiny remains a defining feature of the M&A landscape. Key challenges include:
Foreign direct investment regimes are intensifying significantly:
Economic and trade dynamics continue to create unpredictability:
Regulators are increasingly concerned about the long-term power dynamics of AI consolidation. Software companies face pressure even with strong profitability metrics, while AI companies have enjoyed pass-ons. Export controls and national security reviews on AI-related assets add further friction to transactions.
The multitrillion-dollar capital expenditure supercycle required to build AI infrastructure has the potential to divert capital away from M&A in the immediate future. Hyperscalers, governments, sovereign wealth funds, and private equity all target AI at scale, competing for available capital that might otherwise flow to acquisitions.
Market expectations for 2026 remain cautiously optimistic:
The North American M&A market enters 2026 with renewed momentum and robust opportunity, underpinned by AI infrastructure buildout, substantial capital availability, and strategic imperatives for scale and innovation. However, dealmakers must navigate a complex landscape of regulatory scrutiny, geopolitical uncertainty, and macroeconomic volatility. Success will require early regulatory planning, flexible deal structuring, sophisticated use of AI and analytics, and compelling stakeholder engagement. For well-prepared buyers and sellers, the convergence of opportunity and complexity creates a powerful backdrop for transformational dealmaking.
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