Survey Predicts Surge in Middle-Market M&A Activity by Private Equity Firms

M&A activity is expected to rise among midsize companies as private equity firms become more willing to do deals, according to a Citizens Financial survey of about 400 companies.

Executives at middle market companies and private equity firms are optimistic about mergers and acquisitions, with 58% anticipating an increase in M&A volume by 2026. Notably, transactions among large corporations accounted for most of the activity in 2025.

“After the recent megadeals, we expect optimism regarding economic growth, interest rates, and valuations to broaden the wave of M&A activity,” stated Jason Wallace, Citizens’ head of M&A, in a phone interview with Reuters.

The majority of executives surveyed in November foresee rising valuations, particularly in sectors such as technology, media, telecommunications, financial services, and real estate, lodging, and leisure.

Wallace noted that activity has been increasing among financial firms, with a significant number of deals related to wealth management.

Private equity executives are showing heightened engagement, with 86% expressing confidence in M&A decision-making in the fourth quarter, a notable rise from 48% in the first quarter.

According to the survey, strong economic growth, interest rate cuts, and attractive valuations across various sectors are the primary drivers behind the anticipated increase in M&A activity. More than half of the private equity firms surveyed expect to initiate deals in the second quarter, ahead of the U.S. midterm elections, which may introduce potential uncertainties.

Interestingly, about 39% of the private equity firms interviewed believe that interest in artificial intelligence companies or assets will significantly influence M&A activity, the survey indicated.

Topics
Mergers & Acquisitions
Trends
Commercial Lines
Business Insurance

M&A activity is expected to rise among midsize companies as private equity firms become more willing to do deals, according to a Citizens Financial survey of about 400 companies.

Executives at middle market companies and private equity firms are optimistic about mergers and acquisitions, with 58% anticipating an increase in M&A volume by 2026. Notably, transactions among large corporations accounted for most of the activity in 2025.

“After the recent megadeals, we expect optimism regarding economic growth, interest rates, and valuations to broaden the wave of M&A activity,” stated Jason Wallace, Citizens’ head of M&A, in a phone interview with Reuters.

The majority of executives surveyed in November foresee rising valuations, particularly in sectors such as technology, media, telecommunications, financial services, and real estate, lodging, and leisure.

Wallace noted that activity has been increasing among financial firms, with a significant number of deals related to wealth management.

Private equity executives are showing heightened engagement, with 86% expressing confidence in M&A decision-making in the fourth quarter, a notable rise from 48% in the first quarter.

According to the survey, strong economic growth, interest rate cuts, and attractive valuations across various sectors are the primary drivers behind the anticipated increase in M&A activity. More than half of the private equity firms surveyed expect to initiate deals in the second quarter, ahead of the U.S. midterm elections, which may introduce potential uncertainties.

Interestingly, about 39% of the private equity firms interviewed believe that interest in artificial intelligence companies or assets will significantly influence M&A activity, the survey indicated.

Topics
Mergers & Acquisitions
Trends
Commercial Lines
Business Insurance