The corporate appetite for making acquisition deals is on the upswing. From shifting global dynamics to the rise of AI, it is a unique climate for dealmaking.
J. Neely, Accenture’s global transaction advisory practice lead and senior managing director, gives his take on what’s driving M&A activity these days, and how the C-Suite can prepare. “The space is fast-moving, and AI can have significant impact in shaping and driving deal value,” says Neely. “Now, agentic AI is shifting the curve again by redefining how deals get done and expanding what is achievable in post-deal value creation.” Here’s what finance leaders should know.
What are the forces that are most impacting M&A activity?
Activity for dealmakers is trending upward, while the macroeconomic and regulatory landscape are improving. Against this backdrop is the role of technology and how advanced AI is changing dealmaking at its core.
On the economic front, financing conditions show signs of improvement as interest rates lower and debt markets expand, including with growth in private credit, fostering conditions that lend themselves to opportunities for dealmakers. At the same time, regulatory conditions are evolving in both the U.S. and Europe, triggering renewed interest in large transactions, though some cross-border deals remain challenging with multinational relations and global supply chain complications.
No discussion would be complete without addressing AI: CFOs and other members of the C-Suite will need to move decisively and with precision to ensure they are using AI to create value in their deals, whether to drive growth, efficiency or both.
How is shifting global dynamics impacting transactions and market competitiveness?
There is increased activity generated from measured dealmaker optimism. Leaders are getting more familiar with the current economic and regulatory conditions, and this familiarity can help encourage them to pursue large-scale deals that create economic and consumer benefit.
On the global scale, there is value to firms that can adapt and diversify their access to growth markets, in turn building resilience amid geopolitical challenges and trade policy.
Why are businesses increasingly choosing to break up large companies, and what should CFOs and the C-Suite be thinking about to manage these transactions well?
Perhaps now more than ever, portfolio strategy is the name of the game. Large corporations are taking a magnifying glass to their portfolios, evaluating what truly belongs in terms of business and customer value.
As CFOs and other C-Suite members prepare to manage these transactions, they should ensure the transactions create simplification and align with the organization’s strategic identity. This trend comes in contrast to past waves of divestitures that were defensive or crisis driven. By divesting non-core businesses, companies can re-invest in growth and strengthen the businesses that will ultimately define their future.
Additionally, amid a rise in activist investors—four in 10 companies in the S&P 500 have been targeted by an activist at least once in the last 15 years, according to Accenture research—there’s increased pressure for companies to deliver on their value thesis. Breaking up large, diversified businesses into more tightly aligned business units is one way to reduce complexity and streamline goals. Companies operate best when clarity of vision shapes their strategy, so C-Suite leadership must allow purpose to pave the way to growth.
AI has already had a profound impact on M&A, and we’re only just getting started as agentic AI enters the mainstream. How do you expect AI to continue to shape the sector, and how can CFOs and other senior leaders best prepare themselves and their workforce for what’s coming?
My conversations with dealmakers have shifted from speculating about how AI might change dealmaking to now swapping information about use cases. The space is fast-moving, and AI can have significant impact in shaping and driving deal value. Now, agentic AI is shifting the curve again by redefining how deals get done and expanding what is achievable in post-deal value creation. To continue moving the needle, CFOs and other senior executives should:
- Upskill their workforce on AI and embed AI use into core activities such as screening and diligence.Bringing people along on the process ensures more effective implementation. Deal teams need to have hands-on training with agentic AI tools and centralized, differentiated data can help unlock insights.
- Identify and pursue opportunities for quick, early wins with AI. Use AI during the diligence and planning processes of dealmaking, where it’s already making an impact, and then eventually scaling it through the full deal lifecycle. In post-deal value creation:
- Anchor on selective value zones: Start where the payoff is high and the risk is low.
- Build a unified data fabric: Seamless interoperability is key to agentic AI success.
- Reframe risk as innovation capital: Shift governance from prevention to acceleration.
- Scale reinvention across the portfolio: Each deal should make the next smarter.
- Treat AI as a critical force in driving dealmaking and revenue growth.Take this as an opportunity to innovate and redesign your team’s core workflows and operations using AI agents and tools. Companies with AI-led intelligent operations achieve 2.5 times higher revenue growth and 2.4 times greater productivity compared to peers.
