Greater than half of world chief executives are getting ready to pursue acquisitions in 2026 as firms more and more use mergers and acquisitions (M&A) to speed up transformation, enhance productiveness and safe development.
That is in accordance with the EY-Parthenon 2026 CEO Outlook, a survey of 1,200 CEOs.
The report exhibits that 53% of CEOs intend to pursue acquisitions within the subsequent 12 months, reflecting renewed confidence in dealmaking as a strategic lever quite than merely a path to scale.
What the report is saying
EY-Parthenon mentioned world M&A exercise rebounded strongly in 2025, marked by each scale and sectoral range.
- The 12 months recorded a near-record variety of offers valued above $5 billion, signalling a willingness amongst massive corporates and buyers to commit capital to transformative, category-shaping transactions.
- Whereas the USA led world dealmaking, supported by robust company steadiness sheets and beneficial financing situations, momentum prolonged throughout areas and industries.
Past expertise: Deal exercise broadens
Though expertise remained probably the most lively sector, pushed by demand for AI capabilities, digital infrastructure and next-generation platforms, the rebound in dealmaking was broad-based.
Healthcare, vitality, industrials, client items and monetary companies additionally recorded robust exercise, reflecting firms’ efforts to reposition portfolios and adapt to altering market dynamics.
In accordance with the report, CEOs are more and more viewing M&A as an extension of their enterprise-wide transformation agenda.
On the high of acquisition targets, 50% of CEOs cited operational optimisation and productiveness positive factors, together with digitalisation.
This, EY-Parthenon mentioned, underscores a shift in considering: “M&A is now not merely a path to scale, however a catalyst for accelerating operational modernisation and embedding superior expertise capabilities quicker than natural funding.”
Progress and market growth stay key
As well as, 45% of CEOs prioritised accelerating top-line development by way of acquisitions, highlighting ambitions to enter new markets, strengthen aggressive positioning and seize adjoining demand.
Enhancing customer engagement and retention, decreasing prices, and enhancing product and course of innovation had been additionally recognized as key motivations, aligning M&A with broader transformation targets.
The report famous that the defining benefit of M&A is pace.
Whereas natural transformation usually requires years of funding and cultural change, focused acquisitions can shortly ship capabilities, expertise, expertise and market entry, permitting firms to compress timelines and overcome inside constraints.
“Whether or not buying an AI-native enterprise or an organization with superior operational practices, M&A permits organisations to tug ahead the advantages of transformation,” the report mentioned.
- Nonetheless, EY-Parthenon cautioned that attaining these advantages is dependent upon early integration planning.
- Worth drivers have to be clearly articulated and actively managed from due diligence by way of execution to make sure efficiencies and synergies are recognized, measured and captured, quite than assumed.
CEOs flip to alliances and joint ventures
Past acquisitions, CEOs are additionally more and more utilizing joint ventures and strategic alliances to advance transformation.
The survey discovered that 79% of CEOs plan to pursue alliances or joint ventures in 2026, up sharply from 62% in 2025, reflecting the attraction of partnerships as a quicker, lower-risk path to new capabilities.
Regardless of the rebound, cross-border M&A continues to face geopolitical headwinds.
Rising nationwide safety critiques, international funding screening, sanctions and antitrust scrutiny have elevated deal complexity, whereas increased rates of interest and uneven post-pandemic recoveries have favoured home consolidation.
Though the US remained the biggest vacation spot for cross-border offers, accounting for 30% of deal worth and 17% of quantity in 2025, its share has declined in contrast with earlier years.
What it is best to know
On Friday, Nairametrics reported that Andela Inc., one of many world’s largest marketplaces for technical expertise, acquired Woven, a technical evaluation firm recognized for its real-world engineering simulations and AI-enabled analysis instruments.
Three days earlier, Netflix revised its $83 billion cash-and-stock bid to purchase Warner Bros. Discovery’s (WBD) studios and streaming enterprise into an all-cash supply, a transfer seen as a method to counter Paramount Skydance’s hostile bid.
Final week, Stripe-owned Nigerian fintech, Paystack, formally entered Nigeria’s banking house following its acquisition of Ladder Microfinance Bank, marking a significant growth past funds into full-stack monetary companies.
Be First to Comment