What is the main indicator for the return of M&A activity?

An increase in deal volume is the primary indicator for the true resurgence of Mergers and Acquisitions activity.

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M&A Revival Hinges on Deal Volume, Expert Says

Q: How does the IPO market relate to M&A?

An uptick in the IPO market serves as an early signal suggesting that private equity sponsors may soon gain the confidence needed to exit their existing portfolio companies and recycle capital.

Q: What has influenced corporate confidence for transactions?

A notable shift in tone from Washington has been instrumental in restoring confidence among corporations that are contemplating various transactions.

5 Feb

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Summary

Deal volume is the primary indicator for a return of M&A activity.
A stronger IPO market suggests private equity may exit investments.
Washington's policy shift has boosted corporate confidence for deals.

M&A Revival Hinges on Deal Volume, Expert Says

Melissa Sawyer, Global Head of M&A at Sullivan & Cromwell, highlighted that an increase in deal volume will be the key indicator for the true resurgence of Mergers and Acquisitions activity. As of February 5, 2026, Sawyer noted that the current uptick in the IPO market serves as an early signal. This suggests that private equity sponsors may soon gain the confidence needed to exit their existing portfolio companies. Such exits would allow them to recycle capital effectively and engage in new investment opportunities. Sawyer also pointed to a notable shift in tone from Washington. This change in the political climate has been instrumental in restoring confidence among corporations that are contemplating various transactions. Her insights were shared during a discussion on "Bloomberg Deals."

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