Latham & Watkins Sees Private Equity Driving M&A Surge in 2026

Latham & Watkins partner Alex Kelly forecasts that mega deals will continue to drive an M&A resurgence, accelerating in the second half of 2026, with private equity keeping pace. The prediction comes amid a favorable regulatory environment and ample dry powder held by PE firms, which are expected to play a key role in dealmaking.

For equity traders, a sustained M&A wave often signals confidence in corporate valuations and can provide a floor for stock prices, as acquisition premiums tend to lift target company shares. The involvement of private equity also suggests that leverage and buyout activity may increase, potentially boosting investment banking fees and related stocks. Live stock prices and charts on NowPrice show how the market is reacting to these M&A forecasts, with sectors like financials and industrials often benefiting from deal flow.

Looking ahead, traders should monitor regulatory developments, interest rate trends, and corporate earnings reports for signs of M&A activity. Key indicators include the volume of announced deals, particularly in sectors with high PE interest such as technology and healthcare. Any shifts in monetary policy or antitrust enforcement could alter the pace of the predicted surge.