Mid-Year 2026 M&A Pulse Survey
M&A Momentum: Measured, Strategic, and Built to Last
Based on a recent KPMG survey of 300 Corporate and Private Equity dealmakers.
Dealmakers across the market are pressing forward — with discipline. The KPMG Mid-Year 2026 M&A Pulse Survey capturing insights from 150 corporate and 150 private equity (PE) dealmakers, reveals a market defined not by hesitation, but by intention: strategic growth remains the primary driver, and firms that pair ambition with rigor are best positioned for the second half of 2026 and beyond.
Download the reports:
Mid-Year 2026 M&A Pulse Survey – Corporate
Download PDFMid-Year 2026 M&A Pulse Survey – Private Equity
Download PDFCorporate
Corporate dealmakers largely expect M&A activity to remain stable or increase
Most corporates anticipate a resilient deal environment in 2H26 despite ongoing market uncertainty
- Eighty-four percent expect deal volume to remain the same or increase versus 1H26, with expansion into new geographies and scaling core businesses driving increased activity
Volume expectations in 2H26 vs 1H26
Macro and geopolitical pressures have not materially changed corporate dealmaking
Corporates continue to pursue strategic deals despite ongoing market uncertainty
- Approximately seventy-five percent continue to pursue deals despite war in the middle east, while sixty-six percent report limited impact from the lack of rate cuts
Impact of war in the Middle East on M&A strategy and deal activity
Impact of lack of rate cuts on M&A strategy and deal activity
Corporates continue to favor smaller deal sizes
Nearly two-thirds of corporates estimate their next deal value to be under $500 million
- Compared to year-end 2025, corporates are shifting toward smaller deal sizes, with fewer expecting their next transaction to fall in the $500 million to $1 billion range
Estimated total deal value of next M&A deal
60% of corporates underwrite moderate level (10%-40%) of synergies
- Corporates typically require moderate synergy assumptions to underwrite deals, with 60% targeting a 10%–40% range
- Higher synergy thresholds are less common, with only 12% targeting above 40%
- ~1/5th of the respondents also indicate synergy expectations vary by deal, reflecting flexibility in underwriting
Level of synergies needed to underwrite / pursue a transaction
Growth priorities continue to anchor corporate M&A strategy
Corporates continue to use M&A to support long-term growth objectives
- Expanding into new geographies has emerged as the leading driver of increased M&A activity, rising from 53% at year-end 2025 to 67% at mid-year 2026
- Corporates’ M&A strategies remain anchored in growth, with dealmaking primarily driven by long-term value creation (sixty-one percent) expansion into new markets (fifty-five percent), and scaling and expanding existing businesses or portfolios (fifty-two percent).
Reasons for increased M&A activity in 2026
Primary investment theses for upcoming deals
Key takeaways for 2H26
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Deal activity remains stable: Corporates continue to pursue strategic transactions despite evolving macroeconomic and geopolitical conditions
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Growth remains the focus: Long-term value creation, market expansion, and business scaling continue to shape corporate M&A
For the remainder of 2026, the edge belongs to companies that continue to pursue strategic growth while adapting to evolving market conditions.
Private Equity
PE dealmakers continue to signal growth intent, while deal execution becomes more measured
- PE deal momentum remains stable heading into 2H26
- Forty-five percent of PE dealmakers expect higher M&A volumes in 2H26, while thirty-two percent expect it to remain stable
- Yet nearly half of the respondents report lengthened deal timelines
Volume expectations in 2H26 vs 1H26
Current geopolitical uncertainty has affected PE dealmaking, with firms proceeding more cautiously
- Most PE dealmakers report an impact on deal activity due to the war in the Middle East, with forty-seven percent proceeding with greater caution and twenty-eight percent pausing or delaying deals
Impact of war in the Middle East on M&A strategy and deal activity
Bigger deals into a more measured market
PE dealmakers continue to prioritize larger transactions as investment sentiment has become more measured heading into 2H26
- Appetite for larger transactions strengthened, with thirty-nine percent of PE dealmakers expecting deals above $1 billion, up from five percent at year-end 2025
- While favorable market sentiment declined from fifty-eight percent to forty percent over the same period
Estimated total deal value of next M&A deal
Private credit complements traditional financing structures
PE firms continue to rely on traditional financing while increasingly incorporating private credit into their financing strategies
- Combined equity and debt (fifty-three percent) remain the preferred financing structure, while nearly all dealmakers (ninety-nine percent) are weighing private credit to provide additional financing flexibility
Financing structures most likely to used for acquisitions
Key takeaways for 2H26
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Growth expectations remain measured: Deal activity is expected to continue, although firms are taking a more measured approach to execution
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Traditional financing leads while private credit complements: Traditional financing remains the preferred approach, while private credit is increasingly used to support greater flexibility
In 2H26, the edge belongs to firms that stay disciplined while adapting to changing market conditions.
The throughline for 2H 2026
The second half of 2026 will reward dealmakers who combine strategic clarity with operational agility. Whether pursuing transformational growth, entering new markets, or deploying capital into larger transactions, the firms that will lead are those that have built the discipline to act decisively — even when conditions are complex.
Our Deal Advisory and Strategy professionals are ready to help you navigate these dynamics — from target identification and due diligence, to deal structuring and post-close integration and separation. Our teams work alongside dealmakers at every stage of the transaction lifecycle to drive value and manage risk.
Source: KPMG M&A Survey - Mid Year 2026
Download the reports:
Mid-Year 2026 M&A Pulse Survey – Corporate
Download PDFMid-Year 2026 M&A Pulse Survey – Private Equity
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