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. Artificial intelligence continues to stand out, with 78 percent of respondents expecting it to offer the most attractive dealmaking opportunities this year.
Twenty-four percent of respondents—rising to 38 percent among private equity participants—are looking to acquire businesses that make significant use of AI, while another 14 percent are targeting pure-play AI companies.
The technology sector also faces intensified regulatory scrutiny. Regulators are focused on "killer acquisitions"—where incumbents purchase nascent rivals to eliminate future competition—and on deals involving ecosystem or vertical integration. Companies in these sectors must demonstrate that their transactions foster innovation and do not foreclose access to critical technologies or data. Theories of harm are evolving, and authorities are increasingly attuned to the competitive dynamics of digital markets.
Energy Transition and Renewables
The defence and technology sectors are gaining momentum following a surge in investments, fuelled by uncertainty surrounding geopolitical conflicts and Europe's focus on ramping up defence capabilities, with both the defence sector and the energy transition field poised to capture a growing share of M&A activity. Disputes involving strategic resources, the energy transition, and industry-specific regulations—particularly mineral security—are expected to remain central in 2026.
Healthcare and Life Sciences
Life sciences remain a top priority for global competition authorities. The sector is characterised by complex regulatory environments, significant intellectual property considerations, and evolving theories of harm around innovation and market access. Active sectors include healthcare and life sciences alongside technology, energy transition, infrastructure, and consumer and luxury brands.
Financial Institutions and Private Capital
A glut of private equity dry powder is expected to drive deal activity in 2026. Eighty-six percent of respondents say private credit will remain a key source of M&A financing over the next two years. At the same time, securities litigation remains elevated, with 207 new securities class actions filed in federal and state courts in 2025.
Cross-Sector Themes
Several themes cut across all industry sectors in 2026:
- Regulatory Fragmentation. The convergence of increased antitrust scrutiny, expanding FDI regimes, geopolitical risk, and sectoral focus is reshaping the business landscape. Clients must adapt by conducting early, comprehensive regulatory assessments and preparing for multi-jurisdictional reviews.
- ESG and Sustainability Governance. The sustainability governance landscape in 2026 is defined by two countervailing forces: the continued expansion of mandatory reporting frameworks in most major economies, and the political backlash against ESG in certain jurisdictions. Boards must work with management to set a "tone at the top" that facilitates the company's ability to navigate ESG-related issues.
- Artificial Intelligence Governance. The governance of artificial intelligence is one of the five central themes of corporate governance in 2026. Boards will increasingly rely on AI-enhanced governance platforms—leveraging real-time dashboards, risk analytics and ethical compliance tools—to elevate active oversight, expedite decision-making and identify early warning signs of misconduct.
- Geopolitical Risk. Heightened focus on geopolitical risk in board-level oversight is a defining theme of 2026. Instability and national-interest rhetoric are increasingly influencing business outcomes.
"In 2026, effective boards will demonstrate competency, credible oversight of salient risks and cross-jurisdiction coherence. As a core governance function, operationalised ESG drives resilience, access to capital and long-term value."
— Corporate Governance Outlook 2026
Strategic Implications for Clients
The firms that will thrive are those with specialist teams that understand not only the legal frameworks but also the commercial realities, regulatory pressures and competitive dynamics of the sectors in which their clients operate. Industry knowledge is no longer a differentiator—it is a prerequisite for effective counsel.
← Back to all Insights