Q2-26 M&A Activity: Large Deals Drive Volume, LBOs Hit 5-Year Low
Global M&A activity topped $1.3 trillion in Q2 2026, yet deal counts barely moved, private equity retreated, and LBOs slumped to a 5-year low. We break down what's really driving the numbers, why PE firms are sitting on record dry powder, and why the outlook for family-owned business sellers hasn't changed.
Leveraged Buyout (LBO) Primer
A leveraged buyout (LBO) is a corporate acquisition where the buyer (typically a private equity firm or family office) finances the majority of the purchase price through a combination of debt and equity. The goal is to grow the company's revenue and EBITDA, reduce the debt load, and exit within three to five years.
What is a Leveraged Buyout and How Does Debt Financing Help an Acquisition?
Is a Leveraged Buyout (LBO) a good strategy for business growth? Leveraged buyouts rely on debt and can enhance equity returns for investors and provide companies with additional access to capital for value creation. But they are not without risk. Disciplined execution is key to success.