US Quarterly Deals Snapshot
A preliminary look at the fourth quarter deal data.
US M&A
US M&A By Quarter
Review of Corporate M&A In 2025
2025 began with a great deal of optimism for the M&A market, with the KPMG year-end 2024 M&A survey showing dealmakers anticipating a more favorable regulatory and tax environment under the new administration. However, this positive outlook was tempered in April by the announcement of widespread "Liberation Day" tariffs, which along with subsequent tariff announcements, created significant uncertainty. The passage of the "One Big Beautiful Bill" in July provided a tailwind, boosting dealmaker confidence and increasing M&A appetite. While a government shutdown in the fall introduced delays and additional costs for some transactions, it did not lead to significant deal cancellations, according to the KPMG year-end 2025 M&A survey, demonstrating the market's underlying resilience.
Outlook For Corporate M&A In 2026
We start the new year again with optimism that M&A will be stronger next year, with the KPMG year-end M&A survey showing two-thirds of dealmakers saying they would do more deals in 2026 than in 2025. Dealmakers in our survey pointed to the expectation of falling interest rates in 2026 as the main driver of deals, as well as the positive impact of the “One Big Beautiful Bill.” Dealmakers seem to have gotten used to the “new normal” of tariff disruption and are moving ahead with M&A plans all the same. The drive for increased M&A is overwhelmingly strategic and focused on growth, with the top three reasons given in our survey for increased M&A being: expanding into new markets, growing the core business, and acquiring new technological capabilities.
After the false dawns of the last two years, the tailwinds of falling interest rates and lower taxes are expected to overcome the headwinds of tariffs and the shutdown to bring a much better year for M&A.
Dean Bell
Head of Deal Advisory & Strategy for KPMG US
US Private Equity
Private Equity Acquisitions In the US By Quarter
Review of Private Equity In 2025
After a slower-than-anticipated start to the year, the US private equity landscape in 2025 was defined by the paradox of decreased deal counts but significantly higher deal values. Lingering macroeconomic and geopolitical uncertainties, particularly around trade and tariffs, led investors to prioritize larger, higher-quality assets, resulting in a surge of take-private and corporate carve-out transactions. The pressure to return capital to limited partners after years of delayed exits fueled a notable increase in exit values, driven by sales to strategic buyers and a resurgent, albeit choppy, IPO market. Consequently, while fundraising remained challenging for most, growth equity emerged as a resilient bright spot, and firms increasingly turned to secondaries and continuation funds to generate much-needed liquidity.
Outlook For Private Equity M&A In 2026
The 2026 outlook for US private equity is one of renewed activity, as an improving economy with easing inflation and potential interest rate cuts is expected to stimulate more aggressive dealmaking. Investment will remain sharply focused on technology-driven opportunities, particularly the buildout of AI infrastructure and other scalable US businesses, while also capitalizing on resilient sectors like industrial automation and infrastructure. A critical push for liquidity will define the year, with firms increasingly turning to a reopening IPO market, strategic M&A, and a growing secondary market to realize returns on aging investments. Consequently, while fundraising may remain concentrated among top managers, the industry will pivot toward hands-on operational improvements to drive profitability and navigate the evolving market landscape.
Anticipated lower interest rates in 2026 and pent-up exit pressure are set to fuel private equity's strategic acquisitions and accelerate exits, driving significant returns amidst a hopefully stabilizing economic and geopolitical landscape.
Don Zambarano
Head of Private Equity at KPMG US
US listed IPOs
US Listed IPO Proceeds By Quarter
Review of IPOs In 2025
The U.S. IPO market in 2025 was defined by a measured rebound, as stabilizing inflation and a reopened exit window for private equity and venture capital firms fueled a steady pipeline of mature companies. Technology and AI-driven businesses led the charge, with investors favoring a new mantra of profitability over growth, rewarding companies with solid financials and defensible business models. This return to fundamentals brought with it a renewed focus on valuation discipline, as the speculative pricing of previous years was replaced by rational metrics that were rewarded with strong aftermarket performance. Despite momentum being temporarily frozen by a fall government shutdown, the year marked a significant resurgence for the market, rebuilding crucial trust between issuers and investors.
Outlook For IPOs in 2026
The outlook for the US IPO market in 2026 will initially be shaped by the significant backlog from the 2025 government shutdown, which is expected to fuel a wave of offerings in January as companies that were delayed finally come to market. This activity will be further influenced by strong market dynamics, creating a favorable window for companies that are prepared to launch. A key strategic trend for the year will be the prevalence of dual-track processes, as the strong M&A environment offers a compelling alternative to going public. Consequently, many sponsor-backed companies will simultaneously explore both an IPO and a sale, making the interplay between these two exit paths a defining feature of the 2026 capital markets landscape.
The government shutdown created a significant IPO backlog, so expect an unseasonably busy start to 2026 as that pipeline clears in January.
Shari Mager
Head of Capital Markets Readiness at KPMG US
Media Contact
To learn more or to arrange an interview with KPMG leaders, please contact Ed Jones (edwardjones@kpmg.com)
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