The German M&A market proved resilient in 2025 despite macroeconomic uncertainty. While the number of transactions declined, deal values rose significantly. Key drivers included technology and infrastructure deals, particularly in artificial intelligence (AI) and the energy transition, as highlighted in our M&A Outlook.
M&A Outlook 2026
Our study on strategies and transaction structures that will be decisive for companies and private equity investors in 2026.
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Michael Buhl
Managing Partner, Head of Deal Advisory
KPMG AG Wirtschaftsprüfungsgesellschaft
2026 in Focus: The Critical Preparation Phase for M&A Growth
2026 is expected to be a transitional year with moderate growth. From 2027 onward, we anticipate renewed momentum in the M&A market – driven by succession planning in the SME sector, private equity and growth expectations. Those who strategically plan and set priorities now will gain a competitive edge.
M&A Market: The Biggest Challenges
Valuation gaps, geopolitical uncertainties and persistently tight financing conditions remain the main hurdles. Successful players are responding with greater agility, enhanced due diligence and flexible deal structures.
How AI is Reshaping the M&A Process
Generative AI and agentic AI are still in their early stages for German companies and investors – yet the potential for M&A is significant: 76% already use AI in due diligence, and 83% expect AI to improve post-merger integration. However, data quality remains the biggest barrier (74%).
Strategic Recommendations for Decision-Makers
- Design processes with flexibility to adapt to market and technology developments.
- For cross-border deals: allocate more resources for due diligence and compliance checks.
- Actively drive value creation post-deal by implementing integration plans, optimizing operations and realizing synergies.
- Leverage AI to streamline processes, improve decision-making and automate repetitive tasks.
- Plan capacities and priorities early for rising M&A activity in 2026/27.
