Robust M&A Activity Expected Through Late 2026, Says Sullivan & Cromwell's Top Deal Lawyer

Melissa Sawyer, the head of worldwide M&A for Sullivan & Cromwell, sees a steady stream of transactions ahead. The variety of deals across sizes, sectors, and borders is what gives her confidence.

A Pipeline That Keeps Refilling

Sawyer pointed to a simple reason for her optimism: the range of deals happening right now. "We are seeing deals of all sizes and all sectors," she said.

It is not just one or two blockbuster transactions that are driving activity. "A lot is happening and it is across borders," Sawyer explained. "For me that means the pipeline will continue to refill as deals run off."

Artificial intelligence is a major force behind this activity. Sawyer called AI-related transactions "the biggest disruption in any industry that I have seen in my lifetime." Sullivan & Cromwell's largest practice area involves deals centered on AI computing power and related energy infrastructure. The value of these transactions can exceed that of conventional M&A, yet they remain off the league tables due to their project finance structure.

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Corporate acquirers, which seek operational efficiencies and cost reductions through acquisitions, frequently prevail in these deals compared to private equity firms because of their ability to realize synergies. For private equity, the exception is when they are building a platform investment.

Sullivan & Cromwell's top ranking for M&A deal flow in the first half of 2026 underscores the firm's strength in handling both conventional and project-financed transactions across multiple sectors.

Their value often rivals that of the largest public mergers, and they require specialized expertise spanning finance, regulation, and cross-border structuring. Sullivan & Cromwell's dual strength in both conventional and project-based work has been a key factor in sustaining its leading position.

Political and Regulatory Challenges Ahead

The second half of 2026 will not be smooth sailing. Political factors are a growing concern for dealmakers.

State-level antitrust enforcement is becoming more politicized. With midterm elections approaching, state attorneys general may take a tougher stance on big mergers.

Sawyer recommends that companies prepare communications tailored for investors, labor groups, consumer organizations, and other regulatory participants. She describes her conversations with clients as typically following this pattern: "Here's an area where you may run into friction and here are steps you may want to take to make sure that when you encounter that friction you're prepared to deal with it."

Worth Noting

Despite the regulatory headwinds, the underlying deal activity remains broad and deep, giving Sullivan & Cromwell's top M&A lawyer confidence that 2026 will end strong.

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