The global dealmaking landscape has undergone a fundamental transformation. According to the fourth edition of Norton Rose Fulbright's Global M&A Trends and Risks 2026 report, 52 percent of business executives expect global dealmaking to increase in 2026 relative to 2025—a notable uptick from just 38 percent in the previous year. Yet optimism alone will not close deals.
As one leading analysis observes, "the mechanics of cross-border transactions have fundamentally changed. The regulatory barriers are higher, the administrative requirements are deeper, and the timelines are stretching."
The Regulatory Maze: A Structural Shift
Three years ago, foreign direct investment screening was a highly specific concern, applied primarily to heavily regulated sectors like defence or critical infrastructure. Today, it is a standing item on virtually every cross-border deal checklist. Regulators are systematically expanding their evaluation of who is buying what and from where—marking a structural shift in deal execution.
The European Court of Justice's Towercast ruling has fundamentally altered the antitrust risk profile for sub-threshold transactions. EU National Competition Authorities now have authority to review deals that fall below traditional merger control thresholds under abuse of dominance rules, even after the transaction has closed. Jurisdictions such as the Netherlands, France, and Belgium are introducing formal "call-in powers" that allow authorities to scrutinise transactions of competitive concern regardless of turnover thresholds.
The absence of a mandatory notification requirement does not guarantee regulatory immunity.
Geopolitical considerations have moved from the periphery to the centre of M&A risk analysis. The proliferation of active FDI screening regimes is expanding the scope of review far beyond traditional defence sectors, with authorities now routinely scrutinising transactions involving critical supply chains, data, and sensitive technology.
"Geopolitical tension, national security considerations, economic nationalism, and regulatory fragmentation increasingly wield significant influence over how and where deals are done."
— Baker McKenzie, Global Head of M&A
Technology and AI: Reshaping Deal Strategies
Technology is set to lead growth in cross-border M&A in 2026, with 67 percent of respondents ranking it as the top sector for expansion—well ahead of industrials and energy. Artificial intelligence continues to stand out, with 78 percent of respondents expecting it to offer the most attractive dealmaking opportunities this year, up from 60 percent in 2025.
Reflecting that trend, 24 percent of respondents—rising to 38 percent among private equity participants—are looking to acquire businesses that make significant use of AI.
Private Capital and Financing Evolution
A glut of private equity dry powder is expected to drive deal activity in 2026, with 48 percent of respondents naming it as a top-three driver of global M&A. Eighty-six percent of respondents say private credit will remain a key source of M&A financing over the next two years. More than half (58 percent) of respondents expect the use of R&W/W&I insurance to increase in 2026.
Operational Readiness: The Overlooked Imperative
Alongside regulatory scrutiny, basic corporate housekeeping now poses a massive threat to deal timelines. Even the most strategically sound transactions routinely fall apart over administrative details. CSC research reveals that 74 percent of surveyed professionals have seen deals prevented due to delays or failures in creating entities or special purpose vehicles.
Missing a Know Your Client check or failing to provide ultimate beneficial owner documentation will pause a transaction indefinitely.
"Global dealmaking continues to evolve—reflecting both increasing convergence in transaction practice and meaningful divergence in regulatory, political and governance regimes."
— S&C Partners, Global M&A Law Guide 2026
Strategic Implications for Clients
The firms that will succeed are those that build robust regulatory strategies at the very beginning of the transaction lifecycle, conduct early integrated risk assessments across jurisdictions, and prepare for multi-jurisdictional reviews with meticulous attention to administrative detail.
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