Decline in M&A Performance: Q2 2026 Insights
WTW's latest analysis on global mergers and acquisitions (M&A) indicates a notable decline in deal performance for Q2 of 2026. The Quarterly Deal Performance Monitor highlights that M&A transactions valued over $100 million underperformed by 11.9 percentage points compared to companies not engaging in these activities. This downturn contrasts sharply with the robust performance in the first quarter, which saw 12 mega deals exceeding $10 billion, significantly higher than the three finalized in the second quarter.
The number of large-scale transactions valued over $1 billion also decreased, with 48 deals executed in the second quarter compared to 56 in the first. Consequently, the total value of completed transactions plummeted from $438 billion to $232 billion. Despite this decline, the second quarter recorded 202 deals valued over $100 million, surpassing the same period last year, indicating a potentially adjusting market rather than an outright downturn.
According to Jana Mercereau, Head of Europe M&A Consulting at WTW, the M&A market continues to experience significant swings in deal performance due to an unpredictable macroeconomic and geopolitical landscape. Mercereau noted that despite this volatility, companies persist in pursuing strategic goals, sustaining deal-making activities.
Regional Performance Insights
North American acquirers completed 103 deals, facing an 11.6 percentage point underperformance compared to the first quarter's smaller gap of 5.4 percentage points with 117 deals. In Europe, 38 transactions were completed with an 8.3 percentage point underperformance, contrasting with positive performance previously. Meanwhile, Asia-Pacific showed particularly poor performance, underperforming by 35.8 percentage points, despite increasing deal volume from 49 to 51 transactions.
Mercereau emphasized that "geopolitical uncertainty, valuation concerns, and shifting trade policies" have not significantly slowed global M&A activities. She highlighted the importance of a strategy-driven approach focusing on sector-specific opportunities to achieve transactions that deliver long-term value amidst challenging conditions.