Leadership Engineering Moves Center Stage In M&A Dealmaking

Deal activity is consolidating around fewer but larger transactions, as companies place big bets on high-conviction moves while navigating persistent uncertainty. For many sectors, a confluence of competitive dynamics is putting leadership under greater stress to produce returns. Leo Cummings, an associate at Hunt Scanlon Ventures, explores how these shifts are redefining strategy, and what it means for the high stakes business of placing top leadership.

The latest EY Merger Monthly highlights a market increasingly defined by fewer but higher-value transactions. 

According to Mitch Berlin, EY Americas Vice Chair, the U.S. mergers and acquisitions (M&A) market saw deal value rise compared to the same period last year, marked by fewer but larger transactions amid macroeconomic headwinds. 

Private equity took center stage in high-value deals – a shift in transaction dynamics from just a few months ago.

For dealmakers, this concentration heightens the stakes. A single transaction can move entire sectors, create ripple effects across supply chains, and reframe investor sentiment. With more capital tied up in each deal, execution risk intensifies, and that places new pressure on leadership teams to deliver operational synergies and cultural integration.

EY notes in its report that private equity firms, which had taken a step back earlier in the year, re-emerged last month as major players in high-value transactions. This marks a notable shift in dynamics from just July, underscoring PE’s willingness to step into a volatile market when the right opportunities appear. 

Sector activity in technology, power and utilities, and telecommunications shows how transformative themes – from AI to infrastructure – are shaping deal priorities.

Cautious But Deliberate Dealmaking

What emerges is a picture of cautious but deliberate dealmaking. Companies are not chasing volume; they are betting big on fewer, high-conviction moves. 

For investors, lenders, and boards, the leadership equation is now inseparable from the capital equation; the right executives can determine whether billions in enterprise value are realized or lost.

Technology deals of $100 million and above nearly doubled in value compared to August 2024, even as volumes fell. EY noted that “M&A activity was shaped by AI-driven innovations, including advancements in hardware and semiconductors, intelligent customer engagement, workforce analytics in human capital management systems and energy dedicated to SaaS and data analytics.”

“For recruiters, this means demand is rising for CFOs, COOs, and CTOs who can navigate complexity across regulation, digital infrastructure, and operational transformation.”

Power and utilities also stood out, with deal value tripling on a year-over-year basis. Telecommunications recorded $24.4 billion in transactions across three deals, compared to none in August 2024. These sectoral shifts highlight the leadership challenge of scaling in highly regulated and capital-intensive markets while managing rapid technological integration.

“For recruiters, this means demand is rising for CFOs, COOs, and CTOs who can navigate complexity across regulation, digital infrastructure, and operational transformation,” said Leo Cummings, an associate of Hunt Scanlon Ventures. “Leadership will increasingly define whether firms can extract value from these high-stakes sector bets.”

Private Equity Returns as a Driving Force

EY observed that “PE played a significantly larger role” in recent high-value transactions during August, “reflecting a shift in deal dynamics compared to the previous month.” Private equity’s share of deals over $100 million surged to 47% in August, up from just 8% in July.

“Financial engineering may set the stage, but leadership engineering now determines whether M&A value is realized.”

With private equity firms holding more than 12,000 portfolio companies – a third of them owned for over six years – exit pressures are mounting. 

The EY report noted that nearly half of PE firms would accept a six to 10 percent discount to facilitate exits, underscoring the urgency of leadership continuity and succession planning.

As Mr. Berlin emphasized, larger PE-driven deals require resilience at the leadership level to manage accelerated transitions. 

For search firms and boards, that means lining up succession and interim leadership strategies early to ensure exits are never hostage to one role.

Economic Uncertainty and Leadership Execution

EY-Parthenon Chief Economist Gregory Daco wrote that “U.S. economic activity is on a moderating path amid persistent policy uncertainty, elevated trade frictions and geopolitical tensions.” 

Real GDP growth is forecast to slow to 1.1% year-over-year in Q4 2025 before gradually rebounding to 1.7% in 2026.

As Mitch Berlin and the EY team noted, “These conditions continue to contribute to a more cautious investment environment.” 

With caution comes sharper scrutiny on execution. Larger deals in this environment demand leadership that can withstand uncertainty, keep stakeholders aligned, and deliver value post-close.

For boards and investors, this makes talent the ultimate differentiator. “Financial engineering may set the stage, but leadership engineering now determines whether M&A value is realized,” said Mr. Cummings.