2025 has come to a close, and 2026 is officially here! Following three years of increased interest rates, buyer-seller misalignment, market uncertainty, and more, the landscape is changing for business owners. If you’re considering selling your company, 2026 might just be the year for you.
The Federal Reserve has indicated that policy rates have entered a more stable phase, and they are likely to keep easing monetary policy throughout the year. This should aid in reducing valuation pressures on existing assets by improving financing costs. While interest rates are comparably elevated in contrast to past years, decreased volatility allows for more flexible financing.
Private equity firms hold significant capital, approximately $1.5 trillion in global private equity dry powder. While they have the capital to purchase without discipline, private equity groups continue to utilize their funds carefully. Buyers are prioritizing businesses in good standing, with traits such as consistent cash flow, strong margins, accurate and up-to-date financial reports, and clear executable growth.
During the first 6 months of 2025, private equity exits reached their highest levels in three years. Strategic acquirers are becoming more active, as they are less reactive to financing constraints. They are very motivated by market share expansion, supply-chain resilience, consolidation, and long-term growth opportunities. This is especially prominent in the industrial, healthcare, technology, energy, and food & beverage sectors.
If you’re considering selling your business in 2026, don’t delay getting started. 2026 is shaping up to be an active, fruitful year for mergers and acquisitions. The sooner you contact an M&A professional to start building your transition plan, the better your end results will be. Market conditions are improving, and now is the perfect time to sell. Delaying action could mean losing out on the right deal for you.
Contact Stony Hill Advisors today to kickstart your year with your mergers and acquisitions journey.