Keep pulling the thread on Anu Aiyengar & Kevin Foley.
Global M&A volume reached $4.5 trillion in 2025, a 38% increase year-over-year.
The number of mega-deals, defined as transactions over $10 billion, doubled in 2025 compared to the previous year, reaching a decade high.
JP Morgan predicts that sponsor-backed companies could account for 30% to 35% of all IPO activity in 2026.
The private equity secondary market volume increased by 60% year-over-year in 2025.
Major take-private transactions in 2025 included 3G Capital's acquisition of Skechers, Sycamore Partners' purchase of Walgreens Boots Alliance, and the acquisition of Electronic Arts by Silver Lake and PIF.
The current debt markets can support a leveraged buyout (LBO) of a single-B rated company with a debt package of up to $25 billion or more.
The current debt markets can support a corporate acquisition of a double-B rated company with a debt package exceeding $40 billion.
JP Morgan predicts global IPO issuance could increase by 25% in 2026, returning to pre-COVID average levels.
Positive sentiment in the equity and debt markets in 2025 was driven by secular tailwinds from AI investments, anticipation of supportive Federal Reserve policy, and pro-business fiscal policy.
Approximately 90% of organizations reported regular use of AI in 2025.
Over one-third of organizations are committing more than 20% of their digital budgets to AI technologies.
The current high valuations of public AI companies are supported by demand for AI far exceeding supply, distinguishing the current market from previous technology bubbles.