The global M&A market has entered 2026 with renewed momentum. But not without caution.
Following a strong first quarter, confidence has returned to dealmaking with transaction volumes reaching $1.2 trillion in the first three months of the year, according to LSEG. Yet, this optimism is balanced by a new wave of uncertainty. Ongoing conflict in the Middle East and the risk of supply-chain disruption, inflation pressures and rising interest rates continue to cast doubt over the timing and extent of pipeline conversion. At the same time, a clear two tier market is emerging: mega-deals in technology and AI dominate headline volumes, while deal activity across more traditional sectors remains subdued.
Disruption fuels spin‑offs and carve‑outs as restructuring‑led transactions pose new challenges
These headwinds may, however, serve as a catalyst for portfolio rationalisation and the transactions that follow. Spin-offs, carve-outs and asset sales are becoming increasingly prevalent, particularly as capital-intensive businesses are forced to build resilience in the face of market disruption. McKinsey estimates that the volume of transformation driven transactions grew 30% in 2025, reaching approximately $300 billion in EMEA alone.
Restructuring-led transactions pose a distinctive set of challenges. Sellers must articulate a credible “best ownership” narrative to employees while ensuring a seamless business transfer, often alongside organisational restructuring and workforce adjustments at RemainCo. For buyers, the complexity shifts to post-merger integration. At SpinCo, building a shared culture and sense of belonging is only part of the challenge. Equally critical are the operational realities: capturing synergies, managing workforce change with care and consistency, and underpinning the process with clear, trust-building communication from day one.
Controlling the deal narrative through stakeholder alignment
Against this backdrop, our recent study on organisational change, Leading without a landing, reveals a striking disconnect: only 24% of leaders identify M&A as a probable driver of change. And yet, more than ever, deal success depends on the integrated management of transaction and transformation. Balancing the interests of internal and external stakeholders requires a precise understanding of roles, influence and interdependencies across the ecosystem. Particular attention should be placed on potential multipliers — from influential local leaders capable of shaping internal sentiment and media narratives, to strategic third‑party validators such as work councils acting as bridges to the workforce or key clients signalling confidence in the new entity. Identifying and activating these voices early is critical to maintaining control of the deal narrative.
These dynamics underscore the close collaboration between H/Advisors’ Corporate Performance and M&A teams. Regularly advising on complex, cross‑border and transformation‑driven transactions, our teams work side by side on joint mandates to deliver integrated counsel across the full deal lifecycle. This approach is reflected in the scale of our recent activity and our standing among leading communications advisers globally, with H/Advisors ranking third worldwide by deal count in Mergermarket’s latest Global and Regional PR Advisor League Tables.
