Global M&A Q4 2025 Market Update
Focus, Not Frenzy: How a Concentrated Market Sets the Tone for 2026
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February 16, 2026
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Global M&A activity in the fourth quarter of 2025 reflected a market driven by strategic intent rather than broad-based acceleration. Strategic buyers continued to account for the majority of deal activity globally, and intra-industry transactions remained more prevalent than cross-industry deals, indicating that consolidation and adjacency expansion continued to shape deal rationale.
Figure 1 - Disclosed Deal Count by Acquirer Type (#)
Source: Capital IQ, FTI Consulting analysis
Figure 2 - Share of Deals by Industry-Relation (%)
Source: Capital IQ, FTI Consulting analysis
A review of sector-level deal counts in Q4 2025 underscores the uneven nature of activity across industries. While select sectors demonstrated relative stability, several experienced quarter-over-quarter and year-over-year declines in disclosed deal count, reinforcing that activity remained measured rather than broad-based.
Figure 3 - Change in Disclosed Deal Count by Sector (%)
Source: Capital IQ, FTI Consulting analysis
Figure 4 - Share of Deals by Transaction Size (%)
Source: Capital IQ, FTI Consulting analysis
AI-related M&A activity continued to expand globally on a quarter-over-quarter basis. While the global share of AI-related deals remained below that of the United States, the sustained upward trend highlights AI as an increasingly important driver of transaction activity and a defining theme in the current M&A environment.
Figure 5 - Share of AI-Related Deals (%)
Source: Capital IQ, FTI Consulting analysis
Figure 6 - Top 10 Markets by Count of AI-Related Deals (#)
Source: Capital IQ, FTI Consulting analysis
Looking ahead to 2026, the patterns observed in late 2025 suggest that deal activity will continue to be shaped by strategic repositioning, thematic acquisitions and selective deployment of capital. The persistence of strategic-led transactions, continued expansion of AI-related activity and concentration of deal value in larger transactions provide important context for how the M&A landscape is entering the year ahead.
Definitions:
Domestic transactions are transactions where both the target and buyer are incorporated in the same country. Cross-border transactions are transactions where the target and buyer are incorporated in different countries. Intra-industry transactions are transactions where both the target and buyer operate in the same primary sector. Cross-industry transactions are transactions where the target and buyer operate in different primary sectors. Global transactions are transactions spanning major world regions, including North America, Europe, Asia, Africa, the Middle East, Latin America and the Caribbean. Deal size categories are defined as follows: Small transactions are less than USD 50 million, medium transactions are USD 50 million to less than USD 500 million and large transactions are USD 500 million or greater. AI-related transactions are transactions where the target offers AI-driven products and/or services. Average disclosed transaction value represents total reported deal value divided by the number of transactions with disclosed values for a defined period and sector. Average EV/EBITDA represents the average EV/EBITDA multiple calculated using transactions with disclosed values for a defined period and sector. Cancelled transactions are excluded. Transactions not classified within a specific industry sector are included in overall totals.
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Published
February 16, 2026
Key Contacts
Senior Managing Director, Global Head of M&A
Senior Managing Director, Leader of Financial Due Diligence
Senior Managing Director, Leader of Merger Integration & Carve-Outs