Boston Consulting Group reports that while aggregate deal value has surpassed the ten-year average by 11%, the recovery is uneven. The bottleneck for mid-market activity lies in execution rather than a lack of capital. According to Jens Kengelbach, global leader of Mergers & Acquisitions at BCG, transaction readiness and persistent valuation gaps prevent a more widespread rebound. Assets must now clear rigorous tests, including regulatory scrutiny and market-clearing economics, before deals can move to completion.

Sentiment data further illustrates this divide. The BCG M&A Sentiment Index reached 83, up from 79 earlier this year, yet remains significantly below the long-term average of 100. Financial institutions and real estate lead the optimism, while technology and consumer sectors lag despite seeing growth in total deal value. Artificial intelligence acts as a double-edged sword in this environment: it serves as a primary driver for investment while simultaneously complicating valuations by introducing uncertainty regarding the long-term durability of existing business models. As a result, firms are increasingly turning to minority investments, earnouts, and joint ventures to mitigate risk.