After several years of economic uncertainty, mergers and acquisitions (M&A) are once again climbing to the top of boardroom agendas. Yet today’s deal environment presents an interesting paradox: confidence is returning, but so is caution, said Deloitte Thailand.
Deloitte’s 2026 M&A Trends Survey, based on insights from 1,500 corporate executives and private equity dealmakers worldwide, found that more than 80% of respondents expect both deal volume and deal value to increase over the next 12 months. At first glance, this signals a strong recovery in M&A activity. But beneath the optimistic headline lies a more nuanced story. Compared with last year, the share of respondents expecting deal activity to “increase significantly” fell by 16 percentage points, while those anticipating it would “increase somewhat” rose by 17 percentage points. In other words, confidence remains high, but it has become more measured.
This reflects the reality businesses face today. Although inflation has eased and financing conditions have become more predictable, companies continue to navigate geopolitical tensions, evolving trade policies, supply chain shifts and rapid technological disruption. That’s why we describe today’s environment as “a tale of two markets.” On one hand, confidence is returning, with companies actively looking for growth through acquisitions. On the other, persistent volatility and heightened competition mean organisations are becoming far more selective about which deals they pursue and how they execute them.
For executives across Thailand and Southeast Asia, this changing landscape offers several important lessons.
Growth remains the objective, but strategy matters more than scale.
Today’s acquirers are no longer pursuing deals simply to become larger. Instead, many are using M&A to acquire capabilities they cannot build quickly enough on their own. Digital transformation, artificial intelligence, cybersecurity, specialised talent and advanced technologies have become strategic priorities. As organisations race to remain competitive, acquiring these capabilities is often faster than developing them organically.
At the same time, dealmakers are becoming more selective about where they deploy capital. This suggests that headline transaction values can mask a more selective market, where companies are carefully targeting assets that fit their long-term strategy rather than pursuing growth for its own sake.
Preparation has become a competitive advantage.
Previous market cycles often rewarded those willing to move first. Today’s environment rewards those who are ready.
The survey found that 29% of respondents identified uncertain market conditions as the biggest challenge facing M&A, an increase of 10 percentage points from the previous year. Another 26% cited a more competitive deal environment. These findings reinforce why leading acquirers are investing more heavily in pre-deal planning, commercial and financial diligence, integration readiness and value creation planning before transactions are even announced.
In a market where uncertainty has become the norm, the quality of preparation increasingly determines whether a deal succeeds after closing.
Technology is reshaping how deals are executed.
Another defining trend is the growing role of AI throughout the M&A lifecycle. The conversation has moved beyond whether AI should be adopted. Increasingly, organisations are embedding AI into target screening, due diligence, risk assessment, synergy modelling and post-merger integration planning. While human judgement remains central to every major transaction, AI is enabling deal teams to analyse larger volumes of information, identify risks earlier and make more informed decisions at greater speed.
As competition for quality assets intensifies, these capabilities are becoming a source of competitive advantage because they not only improve efficiency but also enable organisations to respond more quickly and confidently in an increasingly volatile market.
Implications
For businesses in Thailand and across Southeast Asia, the implications are clear. The region continues to benefit from long-term structural growth, digital adoption and increasing cross-border investment interest. These fundamentals create attractive opportunities for both domestic and regional transactions. However, success will depend less on pursuing more deals than on pursuing better ones with stronger preparation, sharper strategic alignment and disciplined execution.
The M&A market is undoubtedly recovering, but it is doing so differently from previous cycles. The winners are unlikely to be those pursuing the greatest number of deals. Instead, they will be the organisations that combine strategic ambition with operational discipline, using M&A not simply as a tool for expansion, but as a deliberate means of acquiring new capabilities, strengthening resilience and positioning themselves for long-term growth.
In short, in an environment where opportunity and uncertainty coexist, success will depend not on doing more deals, but on doing the right deals with the agility, preparation and strategic clarity to create lasting value.
