M&A Activity Report (EY)

Summary

• US mergers and acquisitions transactions valued at US$100 million or more grew 22% in value and 23% in volume from June through August 2026 compared to the prior year.p.1
• The US economy is projected to expand at a 2% pace, driven by an 8.5% increase in business investment and AI-related capital spending.p.1
• Corporate profits grew by ~US$401 billion in Q2’26, strengthening profit margins and corporate balance sheets.p.1
• Technology M&A deal value rose 54% and volume increased 38%, centered on AI, proprietary data, and digital infrastructure.p.2
• Life sciences M&A deal value jumped 123% and volume increased 109%, driven by demand for diagnostics, tools, and novel treatment platforms.p.2
• Media and entertainment M&A deal value rose 218% while deal volume remained flat, reflecting concentration in larger transactions.p.3

Key insights

1. US M&A activity accelerated from June through August 2026 as strategic acquirers and financial sponsors deployed capital into scale and consolidations.p.1
2. Dealmaking growth was broad-based across transactions valued at US$100 million or more rather than reliant on megadeals.p.1
3. Gregory Daco projects 2% US economic growth, supported by an 8.5% rise in business investment.p.1
4. Technology sector dealmaking expanded with a 54% increase in deal value and a 38% rise in deal volume.p.2
5. Life sciences M&A recorded a surge with deal value up 123% and deal volume up 109%.p.2
6. Aerospace and defense M&A value rose 15% while volume climbed 94%, pointing to a higher concentration of smaller transactions.p.2
7. Media and entertainment deal value surged 218% despite flat volume, indicating activity in larger high-value assets.p.3
8. Oil and gas and chemicals M&A moderated, with deal value falling 34% and deal volume decreasing 31%.p.3