The global mergers and acquisitions (M&A) market has reached a historic high in the last fiscal year, according to the latest McKinsey report “Mergers and Acquisitions Trends for 2026: Navigating a Rapidly Recovering Market”. The total value of deals increased by 43%, reaching $4.7 trillion by the end of 2025. Megadeals and artificial intelligence (AI) were key drivers of this growth. The McKinsey report highlights five macro-trends shaping this market: the formalization of deals, the search for new growth sources, the prominence of megadeals, portfolio transformation, and the rise of private equity. Investors are redirecting capital toward rapidly growing sectors, known as “arenas,” which include AI, generative AI, and disruptive medical treatments. Specifically, AI and medical treatments now account for 40% of deal value, up from 7% two decades ago. Geographically, 70% of the largest deals targeted companies in the Americas, 20% in EMEA, and 10% in the Asia-Pacific region. The Technology, Media, and Telecommunications (TMT) sector led the way, accounting for 10 of the world's 20 largest deals. Meanwhile, private equity (PE) regained its appeal, increasing by 54% to $1.2 trillion due to improved economic prospects and increased private credit activity. Despite geopolitical turbulence, companies are positioning M&A as the most effective vehicle to capitalize on global disruption and ensure growth in uncertain environments. The value of global divestitures, including spin-offs and asset sales, grew by 30% to $1.6 trillion. Investors are paying an average of 27.1 times EBITDA for these companies, significantly higher than the 16.5 times for traditional sectors. The number of deals exceeding $10 billion increased to sixty, the highest since 2021.
