Are transactions the key to unlocking transformation?
M&A is a catalyst for transformation, enabling CEOs to accelerate digitalization, unlock growth and embed new capabilities faster than organic change.
M&A is a catalyst for transformation, enabling CEOs to accelerate digitalization, unlock growth and embed new capabilities faster than organic change.
Merger and acquisition (M&A) 2025 activity was marked by a resurgence, defined by both scale and breadth. The year saw a near-record number of deals over US$5b, signaling a renewed confidence among large corporates and investors to commit capital to transformative, category-shaping transactions. While the US has led global dealmaking, buoyed by strong corporate balance sheets and favorable financing, the momentum is not confined to a single geography.
Similarly, although technology remains the largest and most dynamic sector, fueled by demand for AI capabilities, digital infrastructure, and next-generation platforms, the rebound in deal activity is broad-based, extending into healthcare, energy, industrials, consumer goods, and financial services. This diversification reflects growth ambitions and strategic repositioning as companies adapt to a shifting landscape.
Looking into 2026, we anticipate the continuation of a strong deal market. The survey shows that the 53% of CEOs intending to pursue acquisitions in the next 12 months are seeking outcomes strategically aligned to their enterprise-wide transformation agendas.
Can cross-border M&A withstand geopolitical scrutiny?
Since 2016, cross-border M&A has stedily lost share as rising jurisdictional friction has reframed the strategic benefits of doing deals abroad. Geopolitics has become a central deal variable: US-China tensions, sanctions regimes and supply chain de-risking have made foreign acquirers more likely to face political resistance, longer timetables, and higher execution risk.
Many countries have expanded national security and foreign investment screening, pushing more transactions into mandatory review, widening the definition of “sensitive” assets, such as data, semiconductors, AI, critical infrastructure, and increasing remedies such as governance controls, localization requirements, or forced divestitures. In addition, uneven post-pandemic recoveries and higher interest rates have favored domestic consolidation and reduced appetite for complex multi-regulator processes. Finally, antitrust enforcement has become more interventionist in several major jurisdictions with cross-border deals increasingly subject to parallel filings that impact timing.
Perhaps surprisingly, cross-border M&A in 2025 withstood these geopolitical pressures. The US was still by far the most attractive destination by both value (30% of all cross-border deals) and volume (17%), But both metrics declined on 2024 share, and share of value was sharply down from 2016 (38%).
The responses by CEOs as to their intended investment destination may indicate this is a trend that will continue.
While the US remains the top destination, it has lost some of its outsized appeal. It is no longer in the top five countries for intended investment for CEOs based in Asia, and has declined in ranking across most other countries, including in Europe.
Summary
CEO Outlook 2026 highlights a clear message: sustained transformation will separate leaders from laggards in an uncertain global environment. Geopolitics and technology are reshaping the global economy and business environment faster than ever. Those who invest intentionally, rethink their operating models and use AI and M&A to accelerate change will create their own tailwinds and outpace competitors long before the environment stabilizes.
More: https://www.ey.com/en_pl/ceo/, Report: How do CEOs reimagine enterprises for a future that keeps rewriting itself?