EY-Parthenon, the strategy arm of accounting firm EY, projects continued deal volume growth in 2026 for both corporate and private equity (PE) mergers and acquisitions.
The expected 2026 growth will extend the deals rebound that began in 2024.
EY-Parthenon projects the number of corporate M&A deals will increase 3% in 2026 after an anticipated 10% advance in 2025, while PE deal volume will increase an estimated 5% in 2026 after an expected 8% rise in 2025.
Deals re-accelerated in the third quarter this year following a slow start due to extreme policy uncertainty. Favorable credit conditions, rising valuations, and growing CEO confidence have driven momentum ahead of 2026.
Corporate M&A deals, which will grow an estimated 10% this year, have been powered by resilient corporate balance sheets and easing financial conditions. Meanwhile, PE deals (8% growth in 2025) have been supported by an easing in valuation mismatches – the greatest barrier to dealmaking in prior years.
EY-Parthenon says the macroeconomic backdrop remains broadly favorable to dealmaking. The strategy firm projects US real GDP growth of 2% in 2025 and 1.7% in 2026; a slightly higher unemployment rate of 4.8% as labor demand cools; and a projected peak of 3.2% inflation before cooling to 2.3% by year-end 2026.
The Federal Reserve’s signaling of further rate cuts would ease financing conditions and encourage deal activity into 2026, the firm notes.