Mega deals with infrequent buyers are trending, but many overlook a typical reason – fear of falling behind. This matters in M&A negotiations….

April 3, 2026 Edition

Welcome to this edition of M&A NOTES, a magazine which focuses on the many aspects of business Mergers & Acquisitions.

In this edition:

• Article: Which Way is M&A Heading?
• New book: M&A THIS WAY!  Available here: https://mergeacq.ai/ma-book/

ARTICLE: WHICH WAY IS M&A HEADING?

The state of the M&A market acts as a barometer to how we are all doing economically. Are there buyers and sellers of companies in the sector you are interested in? Are the price valuations reasonable?

An interesting guide to trends in M&A can be found in the Global M&A Report 2026 of Bain & Company  (report). Below is our review of it all.

The report estimates that in 2025 there was a rebound which boosted deal value by around 40% to around $4.9 trillion. Other competing authors cite similar estimates. The report distinguishes between scope (capability) motives and scale (size) motives of buyers. In 2025, around 57% of deals were scope deals, the rest were scale deals. Scope deals are up from 48% in the prior ten years to 2024. Moreover, scope explains nearly all technology deals (94%) in 2025 especially those in “mega” deals over $5bn and deals involving AI. This trend reportedly continued in the first quarter of 2026.  

The report estimates nearly 60% of buyers are infrequent buyers placing big bets on scope. Why is this? The report merely points to the need to reduce risk and focus on integration of the existing and acquired business.

In our experience, this refers to how, not why. It does not fully put a finger on the right pulse. We comment further below. Typical driving motives are also discussed in our book “M&A This Way!”.

Let’s review these motives. They may help you negotiate and conclude an M&A deal.

Comments:

Below are our comments on what motivates buyers and sellers to do an M&A deal, big or small, in our experience.

• Seller:  The seller may have a variety of motives. Possible seller motivations include: Opportunity to make a capital gain, exploit  opportunities, want to retire, forced sale (bankruptcy, death, sickness), increased regulation, increased competition, failing business (turnaround or asset opportunity?) and more.
• Buyer: The buyer may have a variety of motives. Possible buyer motives include: Access to new customers or sector, economies of scale, market dominance, turnaround or asset opportunity and more.
• Psychology: The above is not the whole story. There is also the all-important psychological side. The management of larger companies want to remain the management of larger companies. They often fear falling behind their competitors in terms of size or capability. If someone else has a competitive advantage over them, an M&A deal may be a strategic solution to consider carefully. The alternative is to rebuild the business and try to catch up the competitor(s) concerned.

Rebuilding  takes. It may or may not work.

• To sum up: Our comment is that many M&A deals, scope or scale in nature, are often driven on the buyer side by fear of falling behind. Sellers and others – take note.
• What about 2026?  There are always challenges, including wars in Iran and Ukraine. But business generally evolves and adapts. M&A is one solution. Fear of falling behind remains a valid buyer motive.
• Additional Aspects;
  The above is a short general article, many more factors matter. Please email: [email protected] for M&A advice and assistance.

© Leon Harris, HCAT Harris Consulting & Tax Ltd. April 3, 2026

BOOK: “M&A THIS WAY!”

The above article is based on: “M&A THIS WAY!”  

This is a practical guide book for purchasers, sellers, advisors and investors on many aspects of M&A deals in our experience.

Discover what to expect in M&A deals of all sizes, including international M&A deals.

Topics covered include:

• Ingredients of an M&A deal
• M&A motives and negotiation strategy
• M&A process and preparation
• Structuring an M&A deal
• Valuation aspects

Author: Leon Harris of HCAT Harris Consulting & Tax Ltd, accountants, tax and M&A specialists.

Packed with practical tips. Based on experience of many M&A deals in many sectors.

© January 2026 edition. 

Price: USD 50

“M&A This Way!” is available as an immediate PDF download. Please click here: https://mergeacq.ai/ma-book/.

Footnote:

As always, consult experienced advisors in each country at an early stage in specific cases. We can help arrange introductions.