Survey Reveals Private Equity Firms Poised to Drive Middle-Market M&A Activity

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 the majority of 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, during a phone interview with Reuters.

The survey revealed that most executives surveyed in November expect valuations to rise, particularly in sectors such as technology, media, telecommunications, financial services, and real estate, lodging, and leisure.

Wallace noted a significant uptick in activity among financial firms, particularly with a surge in deals related to wealth management.

Private equity executives are increasingly engaged, with 86% expressing confidence in M&A decision-making in the fourth quarter, a notable increase from 48% in the first quarter.

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

Interestingly, about 39% of the private equity firms interviewed expect the growing interest in artificial intelligence companies or assets to significantly influence M&A activity, the survey showed.

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 the majority of 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, during a phone interview with Reuters.

The survey revealed that most executives surveyed in November expect valuations to rise, particularly in sectors such as technology, media, telecommunications, financial services, and real estate, lodging, and leisure.

Wallace noted a significant uptick in activity among financial firms, particularly with a surge in deals related to wealth management.

Private equity executives are increasingly engaged, with 86% expressing confidence in M&A decision-making in the fourth quarter, a notable increase from 48% in the first quarter.

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

Interestingly, about 39% of the private equity firms interviewed expect the growing interest in artificial intelligence companies or assets to significantly influence M&A activity, the survey showed.

Topics
Mergers & Acquisitions
Trends
Commercial Lines
Business Insurance