By the end of 2025, U.S. companies are projected to have announced M&A transactions surpassing 2024 results in every quarter, setting high expectations for a strong 2026. A survey by KPMG of 300 M&A professionals—split evenly between corporate and private equity—revealed that 66% expect their deal pipeline to grow in 2026, with only 5% predicting a decline. Quality of deal opportunities also looks promising; 74% foresee higher quality deals, while just 4% expect a drop. The survey highlighted key motivations for pursuing M&A. Two-thirds of participants cited the desire to expand into new markets, while 58% focused on growing their core business. A significant 74% are considering full business acquisitions, with others eyeing joint ventures (49%), carve-out acquisitions (45%), and increasing ownership stakes (36%). Joint ventures are primarily sought for new capabilities, risk-sharing, and strategic flexibility. Government actions play a critical role in shaping the M&A climate. Respondents favored incentives for domestic investment (29%) and interest rate policies (25%). However, political uncertainty and the recent federal government shutdown were seen as major hurdles, impacting deal diligence and financial assessments. Interestingly, 33% noted the shutdown increased the diligence required for government-regulated deals, while many also faced delays or added costs. Technology is increasingly influencing M&A efficiency. Over half of the surveyed professionals reported that generative AI has improved target screening efficiency by 11% to 25%. Similar gains were noted in due diligence and market analysis, indicating that tech advancements are becoming a vital part of the M&A process.