We are pleased to share our Fall 2026 Newsletter, featuring our latest perspectives on the middle-market M&A environment and the forces shaping deal activity as we head into the final months of the year.
The deal market continues to improve, but the environment remains complex. In this edition, we look at the factors influencing M&A activity, shifting investor appetite across sectors, and the continued evolution of private capital markets.
Key Highlights
- The M&A market continues to thaw. Deal activity has improved, with more businesses coming to market and a broader range of deal profiles beginning to transact, even as geopolitical uncertainty, inflation and higher interest rates continue to weigh on the environment.
- Deal-by-deal investing is gaining ground. Growing investor demand for direct, single-asset opportunities is fueling the rise of independent sponsors and changing how capital is raised and deployed across the lower middle market.
- AI is reshaping investor appetite. Buyers are increasingly evaluating businesses through the lens of AI, creating meaningful differences in demand across software, services, industrials, healthcare and other sectors.