The 2026 M&A Boom: Strategic Sectors and Assets to Target in the New Era of Deal-Making

The 2026 M&A landscape is poised for a surge driven by three megatrends: digital transformation, private equity re-entry, and regulatory tailwinds. With over $2 trillion in private equity dry powder and a shift toward AI-driven valuations, investors are increasingly targeting sectors where technology, regulatory alignment, and capital efficiency converge. This analysis identifies high-conviction opportunities in technology, healthcare, and industrials, supported by valuation metrics and cross-border dynamics.

Technology: AI Infrastructure as the New Gold Rush

The technology sector is at the forefront of the 2026 M&A boom, with AI infrastructure emerging as a critical asset class. Companies that own or enable AI training and inference capabilities-such as data centers, cloud platforms, and specialized hardware-are commanding premium valuations. For instance, Palo Alto Networks' $25 billion acquisition of CyberArk in 2025 underscored the strategic value of identity security in AI-driven threat landscapes, while HPE's $14 billion purchase of Juniper Networks highlighted the demand for AI-optimized networking infrastructure as reported.

Valuation multiples for AI infrastructure firms have surged, with EBITDA multiples rising from 8–10x in 2024 to 12–15x in 2025 according to data. Applied AI software platforms, meanwhile, trade at 10x revenue multiples, reflecting their scalability and recurring revenue models as market analysis shows. Private equity firms are prioritizing software companies with high gross margins, which command median EV/EBITDA of 15.2x and EV/Revenue of 3.0x according to Aventis Advisors.

. The Magnificent Seven's projected earnings growth further amplifies the sector's appeal, as their dominance in AI infrastructure creates a gravitational pull for smaller, complementary assets as reported by Yahoo Finance.

Healthcare: Consolidation in High-Margin, Tech-Enabled Subsectors

Healthcare M&A is set for a rebound in 2026, driven by private equity's focus on high-margin, scalable platforms. Subsectors like telehealth, ambulatory surgery centers, and AI-driven diagnostics are attracting strategic buyers and PE firms. Johnson & Johnson's $13.1 billion acquisition of Shockwave Medical and Stryker's $4.9 billion purchase of Inari Medical exemplify the sector's appetite for innovation in cardiovascular and structural heart interventions as detailed in a market analysis.

Valuation metrics remain robust, with Medtech and digital health firms trading at 14.4x EV/EBITDA for larger platforms and 10–12x for mid-market targets according to Focus Bankers. AI integration is a key differentiator: platforms leveraging AI for diagnostics or treatment planning command higher multiples, while those lacking digital capabilities face valuation gaps as observed by Fierce Healthcare. In Europe, fragmented markets in veterinary care, dental, and fertility clinics offer attractive entry points, with EV/EBITDA multiples exceeding 10x in Southern and Eastern Europe as reported in healthcare analysis.

Regulatory tailwinds, such as the EU's Medical Device Regulation (MDR), are accelerating consolidation as smaller firms seek strategic partners to meet compliance costs as detailed in European healthcare analysis. Meanwhile, the normalization of IPO markets for digital health companies in late 2025 has created liquidity pathways, further incentivizing M&A activity according to Dykema.

Industrials: Energy Transition and AI-Driven Automation

The industrial sector is undergoing a transformation fueled by energy transition and AI-driven automation. Energy infrastructure, particularly in renewable power and battery storage, is a prime target for consolidation. With 90% of new energy capacity in 2024–2025 being clean energy, investors are prioritizing assets that align with decarbonization goals as reported by Apollo. Cross-border deals in this space are gaining traction, especially in the U.S. and Europe, where government-backed initiatives are reshaping supply chains as noted in legal analysis.

AI is also reshaping industrial valuations. Manufacturers integrating AI for predictive maintenance and supply chain optimization are seeing EBITDA multiples rise to 14.7x for strategic buyers, compared to 9.6x for private equity according to M&A insights. Notable deals include Baker Hughes' proposed $13.6 billion acquisition of Chart Industries to expand LNG and decarbonization capabilities as detailed in manufacturing analysis.

Valuation metrics favor asset-light models with recurring revenue streams, such as smart building systems or integrated logistics solutions according to Trep Advisors. The One Big Beautiful Bill Act (OBBBA) has further altered the tax calculus for leveraged buyouts, incentivizing capital expenditures in energy and infrastructure as reported by AlignMT.

Cross-Border Dynamics and Strategic Positioning

Cross-border M&A is gaining momentum in 2026, particularly in technology-enabled services and energy infrastructure. However, U.S. tariffs and geopolitical tensions have introduced volatility, widening valuation gaps between domestic and international targets as reported by PwC. Investors are prioritizing nearshoring and domestic assets to mitigate risks, with Texas and the Mid-Atlantic emerging as hubs for AI-driven energy infrastructure as analyzed by Real Assets.

Private equity's re-entry into the market is another tailwind. With global PE transaction values rising 43% year-over-year in Q3 2025, firms are leveraging AI and data analytics to identify undervalued assets and optimize exit strategies as detailed in Crowe insights. The expansion of 401(k) investment options into private equity, under the Trump administration's August 2025 executive order, is expected to unlock trillions in capital, further fueling deal activity as reported by M&A World.

Conclusion: Positioning for the 2026 M&A Surge

The 2026 M&A boom is being driven by a confluence of technological innovation, regulatory shifts, and capital availability. Investors should prioritize sectors where AI integration, regulatory alignment, and cross-border opportunities intersect. In technology, AI infrastructure and software platforms with recurring revenue models offer the highest conviction. In healthcare, tech-enabled subsectors like telehealth and Medtech present compelling consolidation opportunities. Industrials, particularly energy transition and automation, are set for strategic repositioning.

As valuation gaps narrow and macroeconomic uncertainties persist, the key to success lies in identifying assets with durable competitive advantages and alignment with long-term structural trends. For those who act decisively, 2026 promises to be a defining year for value creation.