M&A Prioritizes Execution Over Speed... Carve-Outs Gain Spotlight

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As the global mergers and acquisitions (M&A) market enters a recovery phase, 'carve-outs'-the separation and sale of business units-are emerging as a key strategy.

According to KPMG's '2026 Global M&A Trends and Outlook' report, published on April 15 and based on a survey of 700 M&A stakeholders from corporations and private equity funds across 20 countries, this year's M&A market is expected to see a quantitative recovery in deal pipelines. However, changes in regulatory and tax environments are anticipated to make asset valuation and price agreement more challenging. As a result, portfolio restructuring strategies to enhance deal closure rates are being strengthened, with carve-outs becoming a central mechanism.

The report forecasts that the global M&A market will continue its recovery this year, following last year's trend. Respondents expect to see an average of about six M&A transactions this year. Fifty-six percent of those surveyed anticipate an increase in deal pipelines compared to the previous year. However, the report predicts a 'multi-speed' recovery pattern, with regional differences in the pace of recovery. In particular, U.S. companies are expected to lead the market rebound, leveraging relatively robust capital markets and transaction infrastructure.

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The difference in risk appetite among investment entities was also identified as a major variable in market structure shifts. Private equity funds, driven by dry powder (uninvested committed capital) and investment period pressures, are taking a more aggressive approach to transactions. In contrast, corporations are maintaining a selective acquisition strategy, taking into account company-wide innovation and integration risks.

Accordingly, the competitive landscape of M&A is being reshaped in terms of deal size, structure, and timing. In terms of deal size, the market is expected to center on small and mid-sized transactions under 1 billion dollars. Investors are prioritizing deals that enable structural value creation through integration capability, operational efficiency, and portfolio optimization, rather than simply expanding scale.

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In particular, the report forecasts that carve-outs will establish themselves as a strategic tool for proactively managing corporate risk and enhancing capital efficiency, beyond simple asset sales. In fact, about half of respondents expect carve-out activity to increase over the next one to two years.

On the technology front, artificial intelligence (AI) is expected to play a pivotal role throughout the M&A process. AI is expanding the scope of analysis and improving the precision of decision-making in every stage-from deal sourcing and due diligence to valuation and integration strategy formulation. It is also redefining the very criteria for investment eligibility.

The report highlights 'organizational execution capability' as a critical variable that will determine the success or failure of future M&A activities. As complex transaction structures such as carve-outs, joint ventures, and phased equity investments become more prevalent, the ability to reliably separate and integrate assets through robust execution frameworks and governance has grown in importance.

Moreover, in an environment where regulatory, tax, and geopolitical risks are intricately intertwined, companies are strengthening strategic decision-making at the portfolio level, moving beyond a deal-by-deal approach. This shift is expected to shape the structural trajectory of the future M&A market. The full report is available on the Samjong KPMG website.

Jinwon Kim, Deputy CEO of Samjong KPMG, stated, "In this year's M&A market, organizations with rigorous execution principles and repeatable operating models-rather than those pursuing bold investments-will gain a competitive edge. Companies that focus on portfolio-driven strategies will be able to create sustainable value even amid uncertain market conditions."

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