Lazard 2025 M&A Review and 2026 Outlook
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Today, Lazard published its 2025 M&A Review and 2026 Outlook Report examining the historical quantitative and qualitative drivers of M&A, the additional factors that accelerated activity in 2025, and the emerging themes that could shape dealmaking in the year ahead.
Within the report, Lazard identified three themes that defined the deal environment in 2025:
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Global M&A value rose 40 percent in 2025, driven by a sharp increase in megadeals.
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The total value of completed divestitures and spins over $1 billion grew by 50 percent year-over-year.
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Sponsor‑led take‑private activity in North America rose over 60 percent year‑over‑year in 2025, driven in part by the growing role of sovereign wealth funds—particularly those from the Middle East—as active co‑investors in major transactions.
Additionally, the firm expects multiple drivers should sustain elevated deal value in 2026:
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Rising strategic ambition among large corporates, driven by both offensive and defensive motives in scale-dependent sectors.
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Potential monetization of long-held private equity assets as GPs face significant pressure from LPs to exit long-held positions.
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Continuity in the regulatory environment helping to sustain the window for transformative transactions, particularly among corporates seeking scale or strategic repositioning.
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Rapid growth in innovation‑led sectors creating new M&A acquirors and targets after achieving super-sized growth in short time frames.
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Continued strategic portfolio focus, reflecting the ongoing shift from conglomerate models, as companies continue to pursue “back‑to‑basics” strategies that shed non‑core assets and target complementary acquisitions.
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AI accelerating the widening divide between corporate winners and losers, prompting more urgent and targeted strategic responses.
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The convergence of capital sources continuing to facilitate and efficiently finance transactions, supported by ample private capital dry powder, greater willingness to combine multiple third‑party capital providers, and a constructive rate backdrop.
Looking ahead, a key theme is the increasing importance of “contextual alpha”—the ability to navigate non-financial dimensions such as geopolitical dynamics, regulatory environments, macroeconomic conditions, and sector-level nuances to unlock deal value. The report also features analysis from Lazard Geopolitical Advisory that highlights how geopolitical dynamics are increasingly shaping corporate strategy and playing a role in M&A decision-making.
Download to read the full report and learn more about the global M&A landscape.
