Home Industries Business Services U.S. middle-market M&A confidence hits 6-year high, Citizens survey finds

U.S. middle-market M&A confidence hits 6-year high, Citizens survey finds

By

Matthew McNulty

-

01/07/2026

Citizens-Financial-Group-Inc — THE CITIZENS 2026 M&A Outlook, which surveyed 276 companies and 124 private equity firms, found that 58% of executives now describe the mergers and acquisitions landscape as strong.

PROVIDENCE – Confidence in the U.S. middle-market mergers and acquisitions environment has surged to a six-year high, according to a new survey from Citizens Financial Group published Tuesday. The Citizens 2026 M&A Outlook, which surveyed 276 companies and 124 private equity firms, found that 58% of executives now describe the mergers and acquisitions landscape as

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PROVIDENCE – Confidence in the U.S. middle-market mergers and acquisitions environment has surged to a six-year high, according to a new survey from Citizens Financial Group published Tuesday.

The Citizens 2026 M&A Outlook, which surveyed 276 companies and 124 private equity firms, found that 58% of executives now describe the mergers and acquisitions landscape as strong, up from 54% last year.

Respondents included U.S.-based middle-market businesses with $25 million to $1 billion in revenue, as well as private equity firms with fund sizes less than $1.5 billion that actively buy and sell U.S. companies with $50 million to $1 billion in revenue.

“Uncertainty chilled deal-making early in 2025, but momentum returned as the year progressed,” said Jason Wallace, managing director of M&A at Citizens. “Recent megadeals are a clear signal of market strength, and greater economic clarity could unleash a broader wave of M&A activity.”

Private equity confidence climbed dramatically in 2025, rising from 48% in the first quarter of 2024 to 86% by year-end, with nearly 70% describing the M&A environment as strong, and 90% expecting deal flow to increase or hold steady in 2026, the survey found.

Sellers are also stepping forward: 79% of companies now see themselves as potential sellers, up from 73% last year, while 61% see themselves as buyers, up from 56%.

Other factors driving activity include attractive valuations, succession planning, and the growing role of AI. Among private equity respondents expecting more deal flow, 39% cited the hunt for AI companies or assets as a key motivator.

Meanwhile, one in five companies indicated a sale as part of their succession plan, and more than half still have no transition plan at all, according to the survey.

“With private equity firms sitting on years of dry powder, 2026 may finally deliver the conditions they’ve been waiting for,” Wallace added. “As confidence builds and valuations stabilize, sponsors are poised to unlock a backlog of deals.”

Citizens Financial Group is the parent company of Rhode Island-based Citizens Bank.

Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.