- Global M&A rebounded in 2025 to about $4.5T, led by a record wave of $10B-plus megadeals.
- Investment banking fee pools rose as top firms captured larger advisory and underwriting mandates from the deal boom.
- Big Tech’s AI buildout and a sizable M&A funding backlog are expected to lift investment-grade debt issuance in 2026.
- Consolidation is accelerating in asset and wealth management as firms seek scale amid fee pressure and digital competition.
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In 2025, global dealmaking returned with force after several years of moderation. Total M&A volume rose to approximately US$4.5 trillion, a nearly 50% increase over 2024, and was buoyed by a record number of megadeals worth over US$10 billion. ([ft.com](https://www.ft.com/content/46b87305-4bd7-4e64-81f9-ad6b9a9bc429 Many of these large transactions reshaped sectors such as media, industrials, and transportation. ([ft.com](https://www.ft.com/content/46b87305-4bd7-4e64-81f9-ad6b9a9bc429
Investment banking fee pools benefited directly: Goldman Sachs advised on over US$1.1 trillion in M&A volume year-to-date and saw advisory fees jump 31% year-over-year through the first nine months of 2025. Underwriting fees also rose. ([nasdaq.com](https://www.nasdaq.com/articles/gs-sees-ma-momentum-continue-2026-implications-its-ib-fees Meanwhile, Bank of America stands to earn a record disclosed advisory fee (US$130 million) from the proposed Union Pacific-Norfolk Southern merger (US$71.5 billion), if the deal closes. ([wsj.com](https://www.wsj.com/finance/banking/the-years-biggest-deal-could-yield-a-record-payout-for-bank-of-america-652e04bf
On the demand side, Big Tech firms are increasingly turning toward external financing—especially debt—to fund AI-related infrastructure and data center expansion. ([reuters.com](https://www.reuters.com/business/finance/barclays-exec-says-top-five-tech-firms-could-need-100-bln-funding-next-year-2025-12-03/ The backlog of announced M&A deals awaiting funding (approximately US$175 billion) adds impetus to financing markets in 2026. ([reuters.com](https://www.reuters.com/business/finance/barclays-exec-says-top-five-tech-firms-could-need-100-bln-funding-next-year-2025-12-03/
In asset & wealth management, as well as regional banking and financial services, deal activity is intensifying. Wealth firms are consolidating to achieve scale, improve margins, and expand distribution, especially with retirement plans emerging as growth channels. ([investmentnews.com](https://www.investmentnews.com/practice-management/awm-dealmaking-momentum-builds-heading-into-2026-as-rate-cuts-fuel-consolidation/263568 In financial services more broadly, value is rising even where volumes remain flat—indicating that large, high-value transactions are concentrated among select players. ([pwc.com](https://www.pwc.com/gx/en/services/deals/trends/financial-services.html
Strategically, this moment presents both opportunities and risks: firms that have strong advisory leadership, flexible balance sheets, and robust AI-capable infrastructure are best positioned to benefit. Conversely, risks include regulatory backsliding, interest rate volatility, inflation pressures, and potential overvaluation in technology assets. Macro conditions could tip the balance between upside momentum and downside correction. ([ey.com](https://www.ey.com/en_us/insights/mergers-acquisitions/m-and-a-outlook
Supporting Notes
- Global M&A deal value reached US$4.5 trillion in 2025—up about 50% from the prior year. ([ft.com](https://www.ft.com/content/46b87305-4bd7-4e64-81f9-ad6b9a9bc429
- There were approximately 68 transactions globally valued at over US$10 billion each in 2025. ([ft.com](https://www.ft.com/content/46b87305-4bd7-4e64-81f9-ad6b9a9bc429
- Goldman Sachs advised on over US$1.1 trillion in announced M&A deals in 2025; its advisory fees jumped ~31% year-over-year in the first nine months. ([nasdaq.com](https://www.nasdaq.com/articles/gs-sees-ma-momentum-continue-2026-implications-its-ib-fees
- Bank of America is projected to earn US$130 million in advisory fees from the proposed US$71.5 billion Union Pacific-Norfolk Southern merger, if completed. ([wsj.com](https://www.wsj.com/finance/banking/the-years-biggest-deal-could-yield-a-record-payout-for-bank-of-america-652e04bf
- Big Tech may require up to US$100 billion in external funding in 2026 for AI infrastructure and acquisitions. ([reuters.com](https://www.reuters.com/business/finance/barclays-exec-says-top-five-tech-firms-could-need-100-bln-funding-next-year-2025-12-03/
- The backlog of announced M&A deals awaiting financing is approximately US$175 billion. ([reuters.com](https://www.reuters.com/business/finance/barclays-exec-says-top-five-tech-firms-could-need-100-bln-funding-next-year-2025-12-03/
- In asset & wealth management (AWM), deal volume rose 27% quarter over quarter in the third quarter of 2025; sector consolidation is driven by margin pressures and the need to scale. ([investmentnews.com](https://www.investmentnews.com/practice-management/awm-dealmaking-momentum-builds-heading-into-2026-as-rate-cuts-fuel-consolidation/263568
- US M&A volume for deals greater than US$100 million is expected to grow ~3% in 2026; PE deal volume may grow ~5%. ([ey.com](https://www.ey.com/en_us/insights/mergers-acquisitions/m-and-a-outlook
Sources
- www.reuters.com (Reuters) — 3 December 2025
- www.ft.com (Financial Times) — 26 December 2025
- www.wsj.com (The Wall Street Journal) — 20 September 2025
- www.pwc.com (PwC) — 16 December 2025
- www.ey.com (EY) — 28 October 2025
- www.nasdaq.com (Nasdaq) — 23 December 2025
- www.mckinsey.com (McKinsey & Company) — recent — late 2025
- www.wsj.com (The Wall Street Journal) — 3 days ago (≈ end-of-2025)