As we enter 2026, private equity and corporate finance dealmakers are asking the same question: which sectors will drive M&A activity this year? Analysing 2025’s M&A patterns offers valuable indicators.

Following the Money

Private equity firms conduct rigorous research before investing capital, providing signals of future market dynamics, and M&A trends.

When a PE firm acquires a platform company, it signals both confidence in that industry and a clear intention to pursue bolt-on acquisitions. This buy-and-build strategy means that 2025’s platform acquisitions will drive bolt-on activity throughout 2026 and beyond.

What PE Firms Look For

PE firms target industries with specific characteristics for their consolidation strategy. They seek fragmented markets with numerous small to mid-sized players, companies with similar business models that can be integrated efficiently, and recurring revenue streams for predictable cash flows.

Hot Sectors for 2026

Using MarktoMarket, we can look at 2025 platform investments and identify which sectors may be positioned for heightened M&A activity in the coming year.

Technology and Cybersecurity: The accelerating digital transformation continues to drive deals across the tech landscape. Cybersecurity, in particular, is emerging as a standout subsector, with PE firms increasingly focused on this space amid growing concerns about data protection and cyber threats. This interest was heightened with recent breaches at Marks and Spencer, Qatar airways, Volvo and a breach of Google user information via a Salesforce corporate database.

Healthcare and Essential Services: This sector remains resilient, with care homes, digital mental health platforms, and tech-enabled healthcare solutions attracting significant attention. AI integration has become essential for healthcare services, particularly in diagnostics and vaccine production.

Professional Services: This market continues its steady consolidation trajectory. Law firms, consultancies, and risk and compliance advisors are seeing sustained buy-and-build activity as the demand for specialised service lines grows.

Cleantech and Energy: Renewable energy, electric vehicle charging infrastructure, and carbon capture technologies are attracting significant PE investment as the energy transition accelerates.

For corporate finance advisors and dealmakers building their pipelines, tracking where PE firms deployed capital in 2025 offers valuable insight. Those platform investments indicate where consolidation and acquisition opportunities will emerge.

Based on a webinar by MarktoMarket Origination Director, Mathew Burns. 

Written by MarktoMarket Commercial Manager, Kathryn Stevenson.