M&A Becomes a Capability-Driven Acquisition Strategy

Dealmaking is proving surprisingly resilient in 2026 despite ongoing geopolitical tensions, trade uncertainty, and economic volatility. Evan Berta, an associate at Hunt Scanlon Ventures, examines new research from EY-Parthenon and explores why companies are increasingly using M&A not simply to grow, but to acquire the talent, technology, and organizational capabilities needed to compete in an AI-driven economy.

EY-Parthenon is forecasting an 8% increase in U.S. deal volume for transactions exceeding $100 million in 2026, underscoring how central M&A remains to corporate strategy.

Yet beneath the headline numbers sits a more important story. The role of acquisitions is evolving. Companies are no longer pursuing deals primarily for scale or market share. Increasingly, they are using acquisitions to accelerate transformation and secure capabilities that would take years to build organically.

This shift is taking place at a time when 73% of executives report that geopolitical and economic pressures, including interest rate changes, trade policy shifts, inflation, and supply chain disruption, have already forced changes to their growth strategies.

Rather than slowing activity, uncertainty is pushing many leadership teams to act more decisively. For CEOs navigating AI disruption and changing competitive dynamics, acquisitions are becoming a tool for adaptation.

The Rise of Capability-Driven M&A

One of the report’s most significant findings is the widening gap between corporate and private equity deal activity. Corporate M&A volume is projected to rise 11% this year, while private equity deal volume is expected to remain relatively flat. The divergence reflects the urgency many corporate leaders feel around transformation.

According to EY-Parthenon, 65% of CEOs are pursuing acquisitions to accelerate access to technology, talent, and operating capabilities. At the same time, 46 percent are planning divestitures to simplify their organizations and reallocate capital toward higher-priority initiatives. Together, these trends point to a broader restructuring of corporate portfolios.

“Organizations are increasingly using acquisitions to accelerate access to capabilities that would otherwise take significant time and investment to build internally,” said Evan Berta, an associate at Hunt Scanlon Ventures. “Technology, leadership talent, and operating expertise are becoming just as important as revenue synergies in evaluating potential transactions.”

This represents a meaningful departure from previous M&A cycles. The most attractive assets are often those that bring specialized expertise, proprietary knowledge, or organizational capabilities that can accelerate strategic priorities.

Talent Moves Closer to the Center of Deal Strategy

Perhaps the most notable aspect of this shift is the growing importance of talent within acquisition theses. As companies race to modernize operating models, adopt AI, and compete in increasingly specialized markets, leadership teams are recognizing that technology alone rarely creates sustainable advantage.

The real differentiator is the ability to deploy it.

“Many of the most valuable assets acquired in today’s transactions walk out the door every evening. The ability to retain leadership teams, preserve institutional knowledge, and integrate specialized talent has become a critical determinant of deal success.”

That reality is pushing talent considerations much earlier into the deal process. Buyers are evaluating leadership teams, technical expertise, cultural fit, and organizational capabilities with increasing scrutiny. In many cases, the most valuable assets being acquired are not products or platforms, but the people responsible for building them.

“Many of the most valuable assets acquired in today’s transactions walk out the door every evening,” said Mr. Berta. “The ability to retain leadership teams, preserve institutional knowledge, and integrate specialized talent has become a critical determinant of deal success.”

This is especially relevant as AI adoption accelerates. While software and tools can often be purchased, experienced operators, technical specialists, and transformation leaders remain in limited supply. Acquiring those capabilities can significantly shorten the timeline for enterprise change.

Private Equity Becomes More Selective

While corporate buyers are leaning into transformation, private equity firms are taking a more measured approach. Following an 11% decline in deal volume during the first quarter of 2026, sponsors are becoming increasingly selective about where they deploy capital.

Higher-for-longer interest rates, evolving valuation expectations, and uncertainty around the long-term impact of AI are encouraging greater underwriting discipline. Rather than pursuing broad-based activity, many firms are concentrating capital in areas where they have stronger conviction.

EY-Parthenon points specifically to increasing interest in asset-heavy sectors such as infrastructure and energy, where tangible cash flows provide greater protection against uncertainty.

“Private equity firms are becoming more disciplined in where they deploy capital, but talent remains a common thread across sectors,” said Mr. Berta. “The firms that can identify strong leadership teams and create operational value are still finding attractive opportunities despite the market backdrop.”

This reflects a broader trend across private equity, where operational execution is increasingly replacing financial engineering as the primary driver of value creation.

Transformation Through Acquisition

What ultimately emerges from the report is a picture of M&A as a transformation strategy rather than simply a growth strategy. Companies are simultaneously acquiring capabilities, divesting non-core assets, and repositioning themselves for a rapidly changing competitive environment.

“Private equity firms are becoming more disciplined in where they deploy capital, but talent remains a common thread across sectors.”

That evolution carries significant implications for the human capital market. As transactions become more capability-driven, leadership assessment, succession planning, integration support, and organizational design are becoming increasingly important components of deal success.

For executive search firms and leadership advisors, this creates a growing opportunity to support organizations before, during, and after transactions. For corporate leaders, the message is equally clear.

The next generation of M&A winners may not be those who complete the most deals. They may be the ones that acquire the right capabilities, and the talent behind them.