Strategic focus
Organizations are sharpening portfolio focus to build durable advantage. US dealmakers proceed with confidence, while non-US organizations navigate greater macroeconomic, regulatory, and geopolitical complexity.
KPMG 2026 Global M&A Outlook
2026 is shaping up as the year of the carve-out
Global Merger & Acquisition (M&A) momentum is rebuilding — but the foundations have shifted in ways that will likely reshape how deals are executed and where value is created.
Drawing on a survey of 700 dealmakers across 20 countries, KPMG's latest research reveals how execution capability has become the defining factor in M&A outcomes and why carve-outs are emerging as a structural mechanism for portfolio reshaping, positioning 2026 as the year of the carve-out.
Survey at a glance
700
Senior M&A dealmakers surveyed across 20 countries and 10 sectors
56%
Expect their M&A pipeline to be higher in 2026 vs. 2025.
50%
Anticipate a moderate to significant increase in carve-out activity over the next 12-24 months
Dive into our thinking:
2026 Global M&A Outlook
Download PDFWinning the carve-out relay
Download PDFFive drivers redefining the 2026 deal environment
M&A outcomes are being shaped less by volume and more by a set of structural forces, including geopolitical fragmentation, regulatory volatility, technological acceleration, and portfolio reconfiguration, influencing where opportunities emerge, how portfolios are reshaped and what it takes to execute successfully. Survey findings point to five drivers that are redefining the global M&A environment and elevating execution capability.
Explore the five drivers
Diverging risk appetites
Private equity signals stronger conviction — a mean of 7.3 planned deals versus corporates' 5.2 — driven by deployment timelines, fundraising dynamics, and asset supply. Corporates balance M&A against broader transformation priorities.
Portfolio simplification
Carve-outs are increasingly proactive — boards are addressing risk concentration in non-core segments, reallocating capital, and simplifying operating models. Half of dealmakers expect carve-out activity to increase, with only 6% anticipating a decline.
AI-driven transformation
AI has moved beyond experimentation. Agentic systems now execute multi-step workflows across diligence, modeling, and integration planning — making previously uneconomical categories of analysis viable at a fraction of prior cost.
Execution discipline
As transactions grow more complex, the ability to separate, integrate, and govern effectively — while retaining talent and protecting performance — is decisive. Success demands institutional discipline and repeatability over boldness alone.
AI Is expanding what's possible — and reshaping what's investable
Of these five drivers redefining the 2026 deal environment, none is moving faster or carrying more strategic weight than artificial intelligence — simultaneously transforming how deals are executed and which assets are worth pursuing. AI adoption across the M&A lifecycle has moved beyond experimentation. Advanced analytical systems are now embedded in diligence, modeling, and integration planning. One of the most significant shifts is not simply acceleration of existing processes, but expansion of analytical scope, enabling deeper benchmarking, more exhaustive contract review, and earlier identification of risk.
At the same time, AI is reshaping investability across sectors. As the cost of intelligence declines and autonomous capabilities expand, markets are reassessing which competitive advantages remain durable. Dealmakers are increasingly incorporating AI exposure assessment into standard diligence practice, recognizing that pricing confidence now depends not only on financial performance, but on structural defensibility.
Higher stakes, same fundamentals
The fundamentals of successful M&A haven't disappeared — they've intensified. In an environment defined by geopolitical friction, AI-driven disruption, and accelerating portfolio reconfiguration, strategic focus alone is no longer sufficient. The dealmakers who will define 2026 are those who have built the institutional capability to execute with precision, separate and integrate with discipline, and sustain performance under mounting complexity.
Meet our team
Joe Hartman
Partner, US Deal Advisory & Strategy, Private Equity Co-leader, KPMG US
Paul Pan
US Deal Advisory & Strategy, Private Equity Leader, KPMG US
Carole Streicher
Asset Management & Private Equity Advisory Practice Leader, KPMG US
Donald L. Zambarano
US Private Equity Sector Leader, Managing Partner, and member of the US Board of Directors, KPMG US
Joe Hartman
Partner, US Deal Advisory & Strategy, Private Equity Co-leader, KPMG US
Paul Pan
US Deal Advisory & Strategy, Private Equity Leader, KPMG US
Carole Streicher
Asset Management & Private Equity Advisory Practice Leader, KPMG US
Donald L. Zambarano
US Private Equity Sector Leader, Managing Partner, and member of the US Board of Directors, KPMG US