Global M&A activity returned in force in 2025, revealing new patterns that every finance team and CFO will need to understand as they approach 2026.
Total global deal value is on track to reach $4.8 trillion, which would be the second-highest total on record, according to a new report from Bain and Company. The data shows a market that is active again with clearer pricing signals and new patterns in how companies use deals to support growth. For CFOs, the findings highlight the need for careful capital planning, stronger diligence and steady attention to technology-driven shifts in risk.
How deal strategies are changing
The recovery in 2025 was mostly led by larger transactions. Megadeals above $5 billion made up a sizable share of activity, and many came from companies that have not typically been frequent buyers. This sudden wave of large transactions pushed several industries to move faster and created new pressure on competitors. When a company that rarely acquires decides to pursue a major deal, it can reset expectations for the whole sector.
CFOs may need to respond more quickly when these moves appear and reassess how prepared their organizations are for a potential transaction, especially as private equity dollars are finding their way into new industries and markets.
Scope-driven deals also continued to rise. Almost two-thirds (60%) of large transactions focused on gaining new capabilities, entering adjacent markets or expanding into different business models. These deals rely on strong integration plans and a clear view of how the combined company will grow. Due to this, finance teams will need diligence processes that look beyond cost structure and capture the long-term financial impact of strategy, culture and talent.
Data indicates valuations also increased. Multiples rose to 11.6 times EBITDA, which suggests more confidence among buyers and sellers. For finance teams, this means modeling work must be much more precise. Stronger valuations can open opportunities to sell assets and prompt companies to chase deals more aggressively.
AI’s growing influence on transactions
AI guided both the hunt for targets and the work behind the scenes. The report says “nearly half” of strategic technology deal value involved AI-native businesses, which shows how important this capability has become for growth plans.
AI’s role in buy-side decisions was also noted. Most strategic acquirers conducted reviews of how AI could change a target’s operations or financial outlook. In a fifth (20%) of cases, the review affected a company’s willingness to proceed. The findings suggest this type of analysis has already become a standard part of the CFO toolkit as AI continues to shift cost structures and market dynamics.
Deal teams also increased their use of AI tools during due diligence. Almost half (45%) of practitioners used AI in areas like financial review, data analysis or scenario modeling. These tools, according to researchers, can speed up early-stage evaluations and help teams test a wider range of outcomes. CFOs who may find themselves structuring a deal from either the buy or sell side next year will need to understand how to incorporate these tools into existing processes while keeping room for judgment in areas where AI cannot fully identify risk.
Capital discipline and geographic trends
Companies directed a smaller share of cash to acquisitions in 2025. M&A represented less than a tenth (7%) of total corporate cash spending, which is the lowest share in a decade. Spending on capex and R&D continued to rise. This trend raises the approval standard for any deal.
The United States remained the strongest contributor to global deal value. U.S. targets accounted for the largest share of incremental growth, supported by valuations that continued to improve and regulatory agencies that showed more willingness to accept negotiated remedies. For global companies, this reinforces the need to watch U.S. deal signals closely since activity there often sets the pace for international markets.
The overall picture is a market that has regained momentum while developing new patterns. Deals are getting larger, capability-driven strategies are more common and AI is becoming part of every financial discussion. CFOs who plan for these shifts and strengthen their approach to valuation, diligence and capital allocation will be better positioned for a warming deal environment next year, despite the economy remaining unpredictable with rising inflation, falling interest rates, a murky labor market and unprecedented amounts of government debt.
