Global mergers and acquisitions are set for a distinct resurgence throughout 2026, driven by an appetite for strategic consolidation, tech-focused deals, and an abundance of private equity reserves. Yet, beneath this renewed optimism lies a marked sense of caution. Dealmakers are increasingly turning to representation and warranty (R&W) insurance—frequently referred to as warranty and indemnity (W&I) coverage in international jurisdictions—to insulate their transactions against financial fallout, legal friction, and post-closing liabilities.
Data from the fourth edition of the Global M&A Trends and Risks report, published jointly by law firm Norton Rose Fulbright and research provider Mergermarket, confirms this strategic shift. Fifty-eight per cent of corporate executives surveyed expect their reliance on transaction risk insurance to rise compared to 2025, with 32 per cent anticipating a significant expansion in policy uptake. Demand is surging fastest across emerging economic corridors in South and Southeast Asia, as well as throughout various African markets, where cross-border risks are often heightened.
Overall corporate confidence has rebounded noticeably after a period of economic hesitation. A majority of business leaders—52 per cent—forecast an increase in global M&A volume this year, including 20 per cent who expect a dramatic surge in transactions. This represents a substantial shift from 2025 sentiment, when only 38 per cent of respondents anticipated expansion.
Technology stands out as the primary engine for cross-border expansion, with 67 per cent of dealmakers citing it as their top focus, comfortably outpacing traditional sectors like industrials and energy. Artificial intelligence remains the undisputed centerpiece of this momentum. Seventy-eight per cent of survey respondents identified AI as the most attractive sub-sector for dealmaking opportunities, up from 60 per cent a year prior. Approximately 24 per cent of overall respondents—and 38 per cent among private equity firms—are targeting companies with significant AI integration. A further 14 per cent are pursuing pure-play AI enterprises outright.
Private equity dry powder—unallocated capital waiting to be deployed—will act as a major catalyst, cited by 48 per cent of executives as a top-three transaction driver. Corporate restructurings will also play a pivotal role, with 45 per cent of respondents highlighting industry consolidation and 37 per cent pointing to the divestment of non-core assets.
Financing dynamics appear increasingly favorable. Private credit will remain an essential backbone for transaction funding, according to 86 per cent of executives. Meanwhile, half of those surveyed expect debt market conditions to ease over the coming months, with 19 per cent anticipating a significant reduction in borrowing constraints. Geographically, the United States and Europe lead global growth expectations, with 48 per cent and 43 per cent of dealmakers respectively forecasting a sharp rise in regional deal volume. Canada also recorded strong optimism, with 57 per cent predicting an uptick, alongside rising momentum across the Asia-Pacific region.
Despite these positive tailwinds, dealmakers face formidable headwinds. Disagreements over company valuations have emerged as the single greatest obstacle to completing transactions in 2026, cited by 48 per cent of respondents as a top-three challenge. This marks the first time in recent survey history that valuation gaps have outranked geopolitical instability (39 per cent) and credit limitations (37 per cent) as the leading transactional roadblock. On the regulatory front, antitrust enforcement remains the primary friction point, drawing an average of 35 per cent of top-two responses globally, followed by sanctions compliance at 32 per cent and foreign direct investment screening at 26 per cent.
Reflecting on these findings, Raj Karia, global head of corporate, M&A, and securities at Norton Rose Fulbright, noted that executives are taking a disciplined, strategy-led approach to dealmaking. While regulatory scrutiny and political uncertainties remain persistent features of the modern deal landscape, market participants are proving resilient, adapting through sophisticated structuring, private debt, and targeted allocations into transformative technologies.