KPMG M&A Outlook 2026: Between Uncertainty, Resilience, and Seizing Opportunities
Discover how Germany’s M&A landscape is evolving – with a focus on growth, AI and post-merger value creation.
In collaboration with KPMG
The German M&A market proved resilient in 2025 despite macroeconomic uncertainty. Looking ahead, respondents anticipate 2026 to be a transitional year with moderate growth, with further momentum expected from 2027 onwards as economic conditions improve.
In collaboration with KPMG, Oxford Economics surveyed 200 M&A decision makers from German corporates, private equity funds and family offices to understand how current market conditions, strategic priorities and emerging technologies are influencing transaction activity.
According to our findings, the number of transactions declined in 2025, but deal values rose significantly. While 2026 is expected to be a transitional year with moderate growth, from 2027 onward, we anticipate renewed momentum in the M&A market – driven by succession planning in the SME sector, private equity and growth expectations. Those who strategically plan and set priorities now will gain a competitive edge.
The main barriers to deal execution remain valuation gaps, geopolitical uncertainties and persistently tight financing conditions. We found that successful players are responding with greater agility, enhanced due diligence and flexible deal structures.
Additionally, our findings show that while generative AI and agentic AI are still in their early stages for German companies and investors, the potential for M&A is significant: 76% of M&A leaders surveyed already use AI in due diligence, and 83% expect AI to improve post-merger integration.
The experts behind the research
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John ReinersManaging Editor, EMEA, Thought Leadership, Oxford Economics
John oversees Thought Leadership projects with EMEA-based clients. He works across business sectors and disciplines, but specialises in issues relating to strategy and business operations, such as sustainability, digital transformation, employment and skills, finance, and performance management. He has directed the Thought Leadership contribution on some of Oxford Economics’ largest and most complex research programmes, for global consultancies and corporates, including Accenture, the Adecco Group, Cognizant, EY, Fujitsu and YouTube. Often this is in collaboration with his economist colleagues to blend qualitative and quantitative analysis, and to explore the impact of corporate actions at a business, industry and economy level.
John joined Oxford Economics in 2014, after 25 years as a Financial Controller, financial management consultant and, most recently, a thought leadership expert for IBM’s Institute for Business Value, focused on global public sector issues. John then worked on the independent Digital Government Review as input to the UK General Election. He is an Economics graduate from Sussex University and a Chartered Management Accountant (ACMA).
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Jamie SnowdonSenior Research Analyst, Thought Leadership
Jamie Snowdon oversees data capture and analysis for Oxford Economics’ Thought Leadership group. Leading a dedicated team, Jamie ensures the provision of robust data input for evidence-based thought leadership programmes, delivering in-depth data analysis, impactful visualisations and intuitive analytical tools.
Jamie joined Oxford Economics in 2022, bringing over 25 years of experience in the IT and Business Services industry. During his career, he has held senior research and management roles at leading technology research companies, including PAC, IDC, HFS Research and Market Prescience. Jamie’s analyst career has largely been spent conducting data analysis, including developing market size/forecast models, conducting quantitative/qualitative survey analysis and performing competitive analysis.
Jamie holds bachelor's degrees in Computer Science and Law.
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Maximilian Douglas Carl VickersResearch Manager
Max is based in the London office and supports the Thought Leadership team across business sectors and disciplines. Max graduated from the University of Warwick with a BA in Politics, International Studies and Quantitative Methods and an MSc in Behavioural and Data Science.
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