Bain & Company’s Global M&A Report 2026 analyzes the remarkable resurgence of mergers and acquisitions (M&A) following growth in 2025. Companies are using these transactions to reinvent themselves in the face of challenges such as AI, geopolitical shifts and new global economic dynamics.

We present key findings and trends in the global M&A market, with a specific focus on the construction products and machinery sectors.

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State of the global M&A market

The M&A market experienced a widespread rebound in 2025, with a 40% increase in transaction value. Key trends include:

• Megadeals dominate: Deals in excess of $5 billion accounted for more than 73% of the incremental value of the market. Interestingly, 59% of these large deals were by infrequent buyers (companies that have made fewer than 10 acquisitions in the past 10 years).
• Boom in “scope” deals: For the first time, deals focused on revenue growth and new capabilities accounted for 60% of large transactions, outperforming traditional “scale” deals seeking cost synergies.
• AI as a strategic driver: Adoption of AI in M&A processes doubled to 45%. Nearly half of technology transactions in 2025 had an AI component.
• Capital constraint: Despite the increase in activity, the proportion of corporate capital allocated to M&A reached an all-time low of 7%, as companies prioritized spending on capital and R&D for AI and automation infrastructure.

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Construction Products Sector

In 2025, activity in this sector remained mostly flat after a brief uptick in 2024, reflecting still-fragile construction demand. There is a clear regional divergence: while in North America the value of deals rose by 33%, in EMEA and Asia-Pacific it fell by 48% and 44%, respectively.

• Transitioning to scope agreements: As many segments (such as cement) are highly concentrated, companies are pivoting from scale agreements to expanding product categories and capabilities.
• Focus on professional customers: Large acquisitions, such as Lowe’s and Home Depot, show a tendency to expand into specialized distribution channels and services for professionals.
• Critical business diligence: The focus of due diligence is shifting from identifying cost savings to business levers (strategies to generate more revenue post-purchase). Companies use diligence to distinguish whether a target’s weakness is structural or simply a cyclical market softness.

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Machinery and Equipment Sector

The defining trend in this sector is the strategic rise of software. Industrial companies no longer see software as a tool for internal efficiency, but as an opportunity to reinvent business models and generate long-term growth.

However, while software captures strategic attention, it does not account for most of the money invested. Outside of digital, companies are buying competitors to strengthen their core operations, gain size and secure their supply chains.

• There is a constant flow of succession-driven deals in family-owned companies and the need to reshape product portfolios.
• Operational efficiency: Unlike software deals (which seek new revenues), many of these traditional deals focus on obtaining administrative cost synergies and operational leverage.
• The sector is also moving towards assets that facilitate the energy and industrial transition. This involves acquiring capabilities to manufacture equipment that is more efficient or that runs on new energy sources.

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Keys for action

• Digital technology is no longer an option. The market is rewarding those who integrate digital capabilities into traditionally physical products. It’s not just about “digitizing” what already exists, but rethinking what is offered to the customer when software brings real value.
• Understand where your market is. M&A strategy depends on the degree of concentration in the sector. In mature and consolidated markets, growth depends on expanding the offer: new products, other channels, different customer segments. In fragmented markets, there is still room to gain size.
• Analyze better to compete better. With more buyers competing, the difference is not just in paying more, but in analyzing better and faster. Evaluating product robustness, validating technology, understanding risks that the seller doesn’t see. Companies need deeper analysis if they want to compete with experienced buyers.
• Grow sideways, not just upwards. 2025 marks a shift: 60% of large operations sought to expand capabilities or enter new markets, not just gain size in the same thing. In a time of rapid change, having multiple revenue streams and more complete offerings is more robust than simply being bigger by doing the same old thing.