Global mergers and acquisitions (M&A) are poised for a robust resurgence in 2026, driven by improving corporate sentiment and strategic targeted investments. However, as transactional volume accelerates, dealmakers are increasingly turning to specialised risk-mitigation tools to protect their balance sheets against persistent geopolitical, regulatory, and valuation hurdles.
According to the fourth edition of the Global M&A Trends and Risks report, published jointly by global law firm Norton Rose Fulbright and intelligence provider Mergermarket, 58% of survey respondents expect the deployment of Representation and Warranty (R&W) and Warranty and Indemnity (W&I) insurance to increase this year compared to 2025. Within this group, 32% anticipate a significant surge in adoption. This heightened demand for transactional risk coverage is particularly pronounced across emerging growth corridors in South Asia, Southeast Asia, and Africa, where corporate buyers and private equity firms are deploying insurance mechanisms to bridge negotiation gaps and secure complex cross-border acquisitions.
Market Optimism and Sector Catalysts
The appetite for overall transactional growth has rebounded sharply. Overall, 52% of senior business executives anticipate an uptick in global deal activity in 2026 relative to the previous year—a notable rise from the 38% recorded in the 2025 survey. Crucially, one in five respondents forecasts a significant surge in deal volume over the coming twelve months.
Technology has solidified its status as the primary engine of cross-border M&A. A substantial 67% of market participants identified tech assets as their top target for international expansion, comfortably outpacing traditional sectors such as industrials and energy.
TOP SECTORS & DRIVERS
Cross-Border Tech Target [===========================] 67%
AI Opportunities Attractive [======================================] 78%
Private Credit Key Funding [======================================] 86%
Artificial intelligence (AI) continues to serve as the chief catalyst within the technology landscape:
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Market Attraction: 78% of executives cited AI as presenting the most compelling transactional opportunities this year, representing a significant jump from 60% in 2025.
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Target Preferences: 24% of all respondents—and 38% of private equity participants—are actively seeking to acquire enterprises that integrate significant AI capabilities into their core operations.
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Pure-Play Investments: An additional 14% of buyers are specifically targeting pure-play AI companies.
Beyond technology, private equity dry powder (unallocated capital) remains a vital catalyst for transactional liquidity, cited by 48% of survey participants as a top-three driver of activity. Broader industry consolidation (45%) and corporate divestments of non-core assets (37%) are also expected to fuel transaction pipelines worldwide.
Regional Dynamics and Financing Conditions
Confidence is returning across major international capital markets, led by North America and Europe. In the United States, 48% of respondents anticipate a significant rise in deal activity, whilst 43% expect a similar trajectory in Europe. Canada displays particularly strong domestic optimism, with 57% of respondents forecasting an increase in completed transactions. Across the Asia-Pacific region, momentum is steadily building, reinforced by corporate restructuring, supply-chain realignment, and strategic asset sales.
On the financing front, private debt has entrenched itself as an indispensable component of capital stacks:
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86% of dealmakers expect private credit to remain a primary source of M&A financing over the next two years.
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50% of respondents anticipate easing liquidity conditions, with 19% forecasting a substantial improvement in credit terms.
Navigating Barriers and Strategic Discipline
Despite overarching optimism, dealmakers face a complex operational landscape. For the first time in recent years, valuation gaps between buyers and sellers have emerged as the single largest impediment to deal closing, cited as a top-three concern by 48% of participants. This issue ranks ahead of general geopolitical volatility (39%) and broader financing constraints (37%).
Regulatory scrutiny also poses a formidable challenge. Antitrust oversight was identified as the top regulatory hurdle (drawing an average of 35% of top-two responses across regions), followed by compliance with international sanctions and anti-corruption frameworks (32%), and stringent foreign direct investment (FDI) screening procedures (26%).
Evaluating the findings, Raj Karia, global head of corporate, M&A and securities at Norton Rose Fulbright, noted that market participants are returning to highly disciplined, strategy-driven execution following extended macroeconomic disruptions. He highlighted that whilst geopolitical tensions and regulatory scrutiny remain present, institutional dealmakers are adapting through bespoke financing arrangements, structured deal terms, and targeted allocations to high-growth assets such as artificial intelligence.