A comprehensive analysis from Goldman Sachs, released this January, revealed that global mega M&A activity (transactions over $10 billion) surged by 128% year-over-year, driven by a structural pivot toward AI infrastructure and industrial reconfiguration.
Unveiling the Story Behind the 2026 Capital Pivot
Capital dynamics across the USA and Canada are currently operating through two primary momentum segments:
Strategic Consolidation and Megadeals—Corporate leaders are pursuing “dream deals” to acquire technical capabilities and scale, with strategic buyers now accounting for nearly 70% of all utility and energy M&A value so far this cycle.
Private Equity and Middle-Market Deployment—Flush with record levels of “dry powder,” PE firms are aggressively re-entering the market as financing conditions stabilize. More than half of mid-market portfolio companies now have active AI initiatives—ranging from agentic customer support to dynamic pricing—to deepen their competitive moats.
Delving Into the Significance of OBBBA-Driven Structuring
While market sentiment is bullish, the 2026 landscape is defined by the tax-smart structuring requirements of the One Big Beautiful Bill Act (OBBBA). This legislation has prompted more creative deal structuring, particularly for small and mid-sized businesses seeking exits.
From a financial perspective, “deal flow” in 2026 relies on the restored EBITDA calculation for interest expense limitations, which provides buyers with expanded room to leverage debt with stronger cash flow advantages. This shift allows SMBs and pass-through sellers to negotiate higher valuations, knowing that acquirers can realize immediate tax savings through accelerated expensing.
The IPO window has also thawed significantly, with the latter half of 2025 marking the strongest new issuance period since 2021. For growth-stage companies, this means 2026 is a year for “exit readiness,” utilizing secondary markets—which surged by 51% in the first half of 2025—to provide liquidity to founders and early investors as a bridge to a full public listing
Essential Deal Flow Indicators Unveiled
When analyzing the 2026 capital landscape, Sharviy-aligned leaders focus on four key “Transaction Performance Indicators”:
M (Multiples) – Indicates the valuation premium commanded by tech-enabled firms over traditional “brown” legacy assets.
L (Liquidity) – Represents the volume of secondary transactions used to provide founder liquidity prior to exit.
E (EBITDA) – Denotes the utilization of ATI (Adjusted Taxable Income) rules to maximize interest deductions under OBBBA.
C (Consolidation) – Indicates the ratio of deals focused on “nearshoring” supply chains to North American soil.