US Quarterly Deals Snapshot
US M&A
US M&A By Quarter
Review Of Corporate M&A in Q1 2026
2026 began with optimism for the M&A market, with KPMG’s year-end M&A survey showing two-thirds of dealmakers planning to increase their deal activity. This sentiment was fueled by the One Big Beautiful Bill Act tax cuts, a more permissive anti-trust environment, and expectations of falling interest rates. Large corporate dealmakers in our survey said they would leverage M&A to drive growth, enter new markets, acquire new technological capabilities - particularly in artificial intelligence - and continue to divest non-core assets. However, much like the disruption caused by the "Liberation Day" tariffs last spring, this positive momentum is being muted and somewhat disrupted by the outbreak of the war in the Middle East, with the total value of US M&A deals falling by nearly half from February to March. Nonetheless, dealmakers continue to find creative solutions in their quest for inorganic growth and strategic repositioning.
Dean Bell
US Deal Advisory & Strategy Leader at KPMG LLP
Outlook For US Corporate M&A
“The M&A outlook for the remainder of the year is largely dependent on the geopolitical trajectory in the Middle East. If a lasting peace is achieved and the Strait of Hormuz is permanently reopened, the volume of expected transactions may resume. Conversely, a protracted conflict will lead to significant headwinds, primarily driven by volatile energy prices, which complicate deal valuations, and tightening credit markets which would squeeze liquidity. Nevertheless, dealmakers have grown accustomed to operating in an era of what KPMG terms “compound volatility." Since the fundamental strategic drivers for M&A remain intact, I believe 2026 will still be a strong year for dealmaking, albeit not as robust as we had hoped at the start of this year.”
Dean Bell
US Deal Advisory & Strategy Leader at KPMG LLP
Since the fundamental strategic drivers for M&A remain intact, I believe 2026 will still be a strong year for dealmaking, albeit not as robust as we had hoped at the start of this year.
Dean Bell
US Deal Advisory & Strategy Leader at KPMG LLP
US Private Equity
Private Equity Acquisitions In the US By Quarter
Review of US Private Equity in Q1 2026
“Following a strong second half of 2025 for US private equity deals, the market entered 2026 with good momentum. Investors concentrated their capital on large, high-conviction transactions, most notably large-scale take-privates targeting AI-enabling energy infrastructure and enterprise software. As the quarter progressed, momentum was checked by the conflict in the Middle East, the resulting energy and credit market volatility and the changing outlook for interest rates as inflation risks resurfaced. With exit markets remaining constrained and underwriting becoming more difficult, sponsors leaned heavily into add-on transactions, utilizing buy-and-build strategies to drive operational value in fragmented sectors like healthcare services, B2B software, and industrial tech.”
Carole Streicher
US Advisory Asset Management & Private Equity Leader at KPMG LLP
Outlook For US Private Equity
“Looking ahead, private equity will prioritize selectivity and scale over a broad-based recovery. Macroeconomic friction from geopolitical conflicts, tariffs, and inflation is widening bid-ask spreads, extending deal timelines, and enforcing a return to cautious underwriting. As firms carefully deploy their still-plentiful dry powder, capital is flowing toward high-conviction, top-tier transactions. Specifically, infrastructure, including energy, digital infrastructure, and data centers, is the primary target for mega-buyouts. To capture these capital-intensive opportunities, firms are increasingly forming consortiums with sovereign wealth and institutional investors. These collaborative investments are highly thematic, targeting scarce, "must-own" assets where strategic importance matches financial returns.”
Carole Streicher
US Advisory Asset Management & Private Equity Leader at KPMG LLP
Macroeconomic friction from geopolitical conflicts, tariffs, and inflation is widening bid-ask spreads, extending deal timelines, and enforcing a return to cautious underwriting.
Carole Streicher
US Advisory Asset Management & Private Equity Leader at KPMG LLP
US listed IPOs
US Listed IPO Proceeds By Quarter
Review of US Listed IPOs in Q1 2026
“The US IPO market began 2026 with a surge of activity, as companies delayed by the government shutdown in the fall finally came to market. The year opened with a receptive investor base, rewarding issuers who demonstrated strong fundamentals and clear paths to profitability. However, this momentum was curtailed in March by the outbreak of war in the Middle East. The conflict introduced significant market volatility, causing a sharp slowdown in new issuances as investors shifted to a "risk-off" stance and the IPO window effectively closed for the remainder of the quarter.”
Shari Mager
US Capital Markets Readiness Leader at KPMG LLP
Outlook For US Listed IPOs
“The outlook for the remainder of the year is heavily dependent on the stabilization of the geopolitical landscape. A swift resolution to the conflict could allow the IPO window to reopen quickly, as the underlying demand from both issuers and investors remains intact. However, a protracted period of instability will create significant headwinds, with heightened market volatility complicating valuations and dampening investor appetite for new offerings. Consequently, only the most resilient and well-prepared companies with strong, proven financial metrics might be positioned to successfully test the public markets in the coming months. For many sponsor-backed issuers, navigating this uncertainty will mean keeping their options open, with dual-track processes and potential M&A exits remaining a relevant strategic fallback as they weigh the risks of going public.”
Shari Mager
US Capital Markets Readiness Leader at KPMG LLP
Only the most resilient and well-prepared companies with strong, proven financial metrics might be positioned to successfully test the public markets in the coming months.
Shari Mager
US Capital Markets Readiness Leader at KPMG LLP
Media Contact
To learn more or to arrange an interview with KPMG leaders, please contact Ed Jones (edwardjones@kpmg.com)
