Deals are a fundamental part of the global business and financial system. Companies use deals to acquire competitors, enter new markets, raise capital, secure technology, form strategic partnerships, expand internationally, restructure operations, and create new sources of growth.

A business deal can be as simple as a supplier agreement or as complex as a multibillion-dollar merger between multinational corporations. Deals can involve cash, shares, debt, assets, intellectual property, partnerships, licenses, or combinations of different forms of consideration.

In financial markets, the term deal is often associated with mergers and acquisitions (M&A), private-equity investments, venture-capital funding, debt financing, initial public offerings, joint ventures, and strategic transactions.

The global dealmaking environment in 2026 is being shaped by artificial intelligence, interest rates, geopolitical uncertainty, financing conditions, technology investment, private capital, and changing corporate strategies.

PwC's 2026 mid-year M&A outlook projects global M&A value at approximately $4 trillion for 2026, while the number of deals is projected to be around 42,000. PwC notes that deals above $5 billion account for an increasingly large share of total deal value.

What Is a Business Deal?

A business deal is an agreement between two or more parties involving the exchange of money, assets, services, ownership, rights, or other forms of economic value.

Deals can involve:

• Companies

• Investors

• Governments

• Banks

• Private-equity firms

• Venture-capital firms

• Entrepreneurs

• Strategic partners

• Suppliers

• Customers

The objectives can vary significantly.

A company might make a deal to:

• Increase revenue

• Enter a new market

• Acquire technology

• Gain customers

• Reduce costs

• Expand production

• Access talent

• Raise capital

• Strengthen its supply chain

• Diversify its business

Major Types of Business Deals

Business deals come in many forms.

1. Mergers

A merger combines two businesses into a single corporate structure.

The companies may merge to achieve:

• Greater scale

• Cost efficiencies

• Market expansion

• Technology access

• Product diversification

• Increased market reach

The exact legal and financial structure depends on the transaction.

2. Acquisitions

An acquisition occurs when one company purchases another company or a controlling interest in it.

The buyer may acquire:

• The entire company

• A controlling stake

• Specific business divisions

• Selected assets

• Intellectual property

• Customer relationships

Acquisitions can be financed with cash, shares, debt, or combinations of these.

3. Private-Equity Deals

Private-equity firms invest capital into companies with the intention of generating returns through growth, operational improvements, restructuring, recapitalization, or eventual sale.

Private-equity deals can include:

• Buyouts

• Growth investments

• Platform acquisitions

• Add-on acquisitions

• Recapitalizations

• Continuation vehicles

PwC's 2026 outlook says private-equity dealmaking remains selective, with macroeconomic uncertainty, financing conditions and exit constraints affecting activity.

4. Venture-Capital Deals

Venture-capital deals provide funding to startups and high-growth companies.

Investors may receive equity in exchange for capital.

Funding rounds can include:

• Pre-seed

• Seed

• Series A

• Series B

• Series C

• Later-stage financing

Venture capital is particularly important in sectors such as:

• Artificial intelligence

• Software

• Biotechnology

• Fintech

• Cybersecurity

• Robotics

• Climate technology

5. Strategic Partnerships

Not every deal involves buying another company.

A strategic partnership allows businesses to cooperate while remaining separate organizations.

Examples include agreements involving:

• Technology

• Distribution

• Marketing

• Manufacturing

• Research

• Licensing

• Data

• Cloud services

Strategic partnerships can provide access to capabilities without the full cost and complexity of an acquisition.

6. Joint Ventures

A joint venture occurs when two or more parties establish or operate a business together.

Each participant may contribute:

• Capital

• Technology

• Employees

• Intellectual property

• Distribution networks

• Manufacturing capacity

• Market access

Joint ventures are particularly useful when entering markets where local knowledge or infrastructure is important.

7. Asset Deals

A company does not always need to buy another entire company.

An asset deal involves purchasing selected assets.

These can include:

• Factories

• Equipment

• Brands

• Patents

• Software

• Customer contracts

• Real estate

• Product lines

Asset transactions can allow buyers to obtain specific capabilities without acquiring the entire corporate entity.

8. Debt Financing Deals

Businesses can also raise capital by borrowing money.

Debt deals include:

• Corporate bonds

• Bank loans

• Private credit

• Convertible debt

• Structured financing

The borrower generally has an obligation to repay the capital according to agreed terms.

In 2026, private credit and nonbank lenders remain important sources of deal financing. Deloitte's research highlights the continued role of private credit alongside cash and equity financing.

9. Licensing Deals

A licensing agreement allows one party to use another party's intellectual property under specified conditions.

Licensed assets can include:

• Patents

• Software

• Trademarks

• Media rights

• Technology

• Pharmaceutical compounds

• Content

The licensee may pay an upfront fee, royalties, or both.

10. Distribution Deals

Distribution agreements allow companies to sell products through another company's network.

A manufacturer might partner with:

• Retailers

• Wholesalers

• E-commerce platforms

• Logistics companies

• Regional distributors

These deals can help companies expand without building their own distribution infrastructure.

How a Deal Works

A major corporate deal generally follows several stages.

1. Strategy

The buyer identifies what it wants to accomplish.

2. Target Identification

Potential companies, assets or partners are identified.

3. Initial Discussions

The parties discuss strategic objectives, valuation and transaction structure.

4. Letter of Intent

A preliminary agreement may outline key commercial terms.

5. Due Diligence

The buyer examines the target in detail.

6. Valuation

The parties determine an appropriate transaction value.

7. Financing

The buyer arranges cash, debt, equity or other financing.

8. Negotiation

The parties negotiate definitive terms.

9. Legal Documentation

Lawyers prepare and review the final agreements.

10. Regulatory Review

Some transactions require approval from regulators.

11. Closing

The transaction is legally completed.

12. Integration

For acquisitions and mergers, the businesses may then be integrated.

What Is Due Diligence?

Due diligence is the process of investigating a company or transaction before completing a deal.

It can cover:

• Financial statements

• Revenue

• Profitability

• Debt

• Cash flow

• Tax

• Legal issues

• Employees

• Customers

• Suppliers

• Intellectual property

• Cybersecurity

• Technology

• Regulatory compliance

• Environmental issues

• Litigation

The objective is to understand what the buyer is actually purchasing and identify risks that could affect the transaction.

Financial Due Diligence

Financial analysis examines the target's economic performance.

Important areas include:

• Revenue growth

• Gross margins

• EBITDA

• Operating expenses

• Free cash flow

• Working capital

• Debt

• Capital expenditure

• Customer concentration

• Recurring revenue

Buyers often investigate whether reported financial performance is sustainable.

Legal Due Diligence

Legal teams may examine:

• Corporate ownership

• Contracts

• Litigation

• Intellectual property

• Employment agreements

• Licenses

• Regulatory compliance

• Data protection

• Real-estate agreements

Unresolved legal issues can affect both valuation and deal structure.

Technology Due Diligence

Technology has become increasingly important in modern deals.

Technology diligence can examine:

• Software architecture

• Cloud infrastructure

• Cybersecurity

• Data

• AI systems

• Intellectual property

• Technical debt

• Engineering teams

• Scalability

This is especially important for technology companies.

AI is also changing how buyers assess potential targets.

PwC reports that AI is increasingly being incorporated into deal sourcing, diligence, valuation and investment-committee preparation.

How Companies Value Deals

Valuation is one of the most important parts of a transaction.

Common valuation approaches include:

Comparable Companies

The target is compared with similar publicly traded companies.

Precedent Transactions

The buyer examines prices paid in similar transactions.

Discounted Cash Flow

Future cash flows are estimated and discounted to their present value.

EBITDA Multiples

A transaction value may be compared with earnings before interest, taxes, depreciation and amortization.

Revenue Multiples

Revenue multiples are frequently used for certain high-growth technology businesses.

No single valuation method is appropriate for every company.

Deal Structure

A transaction can be structured in different ways.

Cash Deal

The buyer pays cash.

Stock Deal

The seller receives shares in the acquiring company.

Cash-and-Stock Deal

The transaction combines cash and equity.

Earnout

Part of the purchase price depends on future performance.

Debt-Financed Deal

The buyer uses borrowing to fund part of the acquisition.

Seller Financing

The seller provides financing to the buyer.

The structure can influence risk, taxes, control, liquidity and future incentives.

Deal Financing

Financing is critical to large transactions.

Common sources include:

• Cash on balance sheet

• Bank loans

• Corporate bonds

• Private credit

• Equity issuance

• Private-equity capital

• Venture capital

• Seller financing

• Strategic investors

Financing costs can materially affect the economics of a transaction.

Higher interest rates can make debt-financed acquisitions more expensive.

Private Credit and Deals

Private credit has become increasingly important in transaction financing.

Private-credit providers can offer customized financing to companies that may not rely entirely on traditional bank lending.

Deloitte's 2026 M&A research highlights private credit and nonbank lenders as important deal-financing mechanisms, alongside cash and equity.

Private credit can provide flexibility, but borrowers and investors must evaluate interest costs, covenants, repayment requirements and credit risk.

M&A in 2026

M&A activity in 2026 is being shaped by a combination of technology investment, capital availability, macroeconomic uncertainty and changing corporate strategies.

PwC's mid-year 2026 outlook projects approximately $4 trillion in global M&A value, about 13% above 2025, while projecting roughly 42,000 transactions, about 13% fewer than 2025.

This difference illustrates an important feature of the market: a smaller number of very large transactions can account for a substantial share of total deal value.

PwC says transactions above $5 billion represented approximately 48% of global M&A value in its 2026 mid-year analysis.

AI and Business Deals

Artificial intelligence has become one of the major forces influencing dealmaking.

AI affects deals in two different ways.

AI as a Deal Target

Investors may seek companies developing:

• AI models

• AI applications

• AI infrastructure

• Data platforms

• AI chips

• Cybersecurity

• Automation technology

AI as a Deal Driver

Companies may acquire businesses because AI can transform:

• Revenue

• Productivity

• Customer service

• Software development

• Data analysis

• Operations

• Supply chains

PwC's 2026 analysis says AI is influencing major transactions and reshaping deal strategy across industries.

AI Infrastructure Deals

AI investment extends beyond software.

Large amounts of capital are flowing toward:

• Data centers

• Power generation

• Electricity grids

• Semiconductors

• Networking

• Cooling systems

• Digital infrastructure

PwC identifies AI-related investment in data centers, energy and other infrastructure as an important theme in the 2026 deal environment.

This means companies in traditional infrastructure industries can become part of the AI deal ecosystem.

Cross-Border Deals

Cross-border deals involve companies located in different countries.

These transactions can provide access to:

• New customers

• New technology

• Lower-cost production

• International talent

• New supply chains

• Regional distribution

• Local market knowledge

But they also create additional complexity.

Cross-border transactions may require analysis of:

• Foreign-exchange risk

• Tax

• Local regulations

• Political conditions

• Trade rules

• Employment law

• Cultural differences

• Data regulations

• Supply-chain requirements

Deloitte's June 2026 survey found that 65% of surveyed dealmakers expected cross-border M&A activity to increase over the following 12 months, while emphasizing execution risks involving compliance, supply chains, tax and revenue synergies.

Deals by Industry

Deal activity varies significantly by sector.

Technology

Technology deals can involve:

• Software

• AI

• Cloud computing

• Cybersecurity

• Data infrastructure

• Semiconductors

Healthcare

Healthcare deals can involve:

• Biotechnology

• Pharmaceuticals

• Medical devices

• Healthcare services

• Digital health

Financial Services

Financial deals include:

• Banks

• Insurance companies

• Asset managers

• Fintech

• Wealth management

Energy

Energy deals can include:

• Oil and gas

• Renewable energy

• Utilities

• Power infrastructure

• Energy storage

Manufacturing

Manufacturing deals can involve:

• Factories

• Industrial technology

• Automation

• Machinery

• Supply chains

Consumer and Retail

Companies may acquire:

• Consumer brands

• E-commerce businesses

• Retail networks

• Logistics companies

• Digital platforms

Deal Synergies

A major reason companies pursue acquisitions is the possibility of synergies.

Synergies generally fall into two categories.

Revenue Synergies

The combined company may generate additional revenue through:

• Cross-selling

• New customers

• New products

• Geographic expansion

• Distribution

• Pricing opportunities

Cost Synergies

The combined business may reduce costs through:

• Shared infrastructure

• Consolidated offices

• Procurement

• Technology

• Administration

• Supply-chain efficiencies

However, projected synergies do not automatically become real results.

They must be implemented successfully after closing.

Integration After a Deal

Closing a deal is not the end of the process.

Integration can involve:

• Combining technology systems

• Aligning employees

• Restructuring departments

• Integrating financial systems

• Combining customer databases

• Consolidating suppliers

• Updating branding

• Aligning corporate cultures

Poor integration can reduce the expected benefits of an acquisition.

Deal Risks

Business deals involve significant risks.

Valuation Risk

The buyer may pay too much.

Financing Risk

Interest rates or financing conditions may change.

Integration Risk

The businesses may be difficult to combine.

Regulatory Risk

Authorities may delay, modify or block a transaction.

Technology Risk

A target's technology may be less valuable or scalable than expected.

Customer Risk

Customers may leave after an acquisition.

Employee Risk

Key employees may depart.

Market Risk

Economic conditions may change between signing and closing.

Geopolitical Risk

International transactions can be affected by trade restrictions and political developments.

Regulatory Review

Large deals may require review by competition or other regulatory authorities.

Regulators can examine whether a transaction could:

• Reduce competition

• Increase market concentration

• Harm consumers

• Restrict access to essential services

• Create national-security concerns

The requirements depend on the countries and industries involved.

Cross-border transactions can therefore require regulatory analysis in multiple jurisdictions.

Deal Negotiation

Negotiation determines many of the economic and legal terms of a transaction.

Important negotiation points can include:

• Purchase price

• Payment structure

• Closing conditions

• Representations and warranties

• Indemnification

• Earnouts

• Management retention

• Employee arrangements

• Non-compete provisions

• Financing conditions

• Regulatory requirements

Strong negotiation requires understanding both financial and operational factors.

Deal Documentation

Large deals can involve extensive legal documentation.

Common documents may include:

• Confidentiality agreements

• Letters of intent

• Term sheets

• Purchase agreements

• Shareholder agreements

• Financing agreements

• Employment agreements

• Transition-service agreements

• Regulatory filings

Lawyers, financial advisers, tax specialists and other professionals often work together throughout the transaction.

Investment Banks and Deal Advisers

Investment banks and advisory firms often assist with major transactions.

Their services can include:

• Valuation

• Deal sourcing

• Buyer identification

• Seller preparation

• Negotiation support

• Financing

• Market analysis

• Due diligence coordination

The global advisory market includes investment banks, accounting firms, law firms, private-equity advisers and specialist consultants.

Recent market activity also shows continued competition among major investment banks for M&A mandates. Reuters reported in September 2026 that Goldman Sachs had ranked first in UK M&A by announced transaction value for 2026 at that point, with $175 billion across 69 deals.

Deals and Private Equity Exits

Private-equity firms generally seek ways to eventually realize their investments.

Common exit routes include:

• Sale to another company

• Sale to another private-equity firm

• Initial public offering

• Secondary transaction

• Recapitalization

• Management buyout

The exit environment can influence new deal activity because private-equity firms need liquidity to return capital to investors and recycle capital into new investments.

PwC reported in its 2026 mid-year private-equity outlook that exit constraints and ageing portfolio companies remained important factors affecting deal activity.

Deals and Startups

For startups, financing deals can determine how quickly a company can grow.

A startup may raise capital in exchange for equity.

Investors may evaluate:

• Market size

• Revenue growth

• Technology

• Competitive position

• Founding team

• Customer acquisition

• Unit economics

• Intellectual property

• Future financing requirements

As startups mature, deals can progress from venture financing to strategic investment, acquisition or public-market transactions.

Deals and Digital Transformation

Digital transformation is another major deal driver.

Companies may acquire technology businesses to obtain:

• Cloud capabilities

• AI

• Data analytics

• Automation

• Cybersecurity

• Software

• Digital customer platforms

Deloitte's research identifies digital transformation and AI as continuing areas of focus within the M&A lifecycle.

AI is also increasingly used by deal teams themselves for research, diligence, document review, data analysis and preparation.

How AI Is Changing Deal-Making

AI can potentially improve several stages of the transaction process.

Deal Sourcing

AI can identify potential acquisition targets based on financial and strategic criteria.

Due Diligence

AI can analyze large volumes of contracts and documents.

Market Research

AI can process industry and competitor information.

Valuation

AI tools can assist with financial modeling and scenario analysis.

Integration

AI can help identify overlapping processes, customers and systems.

However, AI-generated analysis requires human review.

Important decisions involving valuation, legal obligations, financial assumptions and risk should not rely solely on automated outputs.

Global Deal Trends in 2026

Several themes are defining the current deal environment.

Megadeals

Large transactions are accounting for an increasingly significant share of global M&A value.

AI

AI is influencing both what companies buy and how transactions are executed.

Infrastructure

Data centers, power and digital infrastructure are attracting deal attention as AI investment expands.

Private Credit

Nonbank financing continues to play an important role in deal funding.

Cross-Border Transactions

International acquisitions remain an important growth strategy, although regulatory and execution risks remain significant.

Selectivity

PwC's mid-year analysis describes a more selective private-capital market, with financing, exit conditions and macroeconomic uncertainty affecting transaction activity.

How to Evaluate a Business Deal

A structured approach can help assess a potential transaction.

Strategic Fit

Does the deal support the company's long-term strategy?

Financial Value

Does the expected value justify the purchase price?

Market Position

Will the transaction improve the company's competitive position?

Synergies

Are projected cost or revenue synergies realistic?

Financing

Can the transaction be financed without creating excessive financial pressure?

Risks

What could cause the deal to underperform?

Integration

Can the businesses realistically be combined?

Regulation

Are there competition, tax, political or regulatory issues?

Exit

If the buyer is an investor, what are the potential future exit routes?

Deals vs. Investments

Deals and investments overlap but are not identical.

A single transaction can be both a business deal and an investment.

The Future of Deals

The future of dealmaking is likely to be shaped by technology, capital availability and changing business models.

AI-Driven Due Diligence

Large volumes of documents and data can increasingly be processed using AI tools.

Digital Infrastructure

Data centers, cloud infrastructure and power systems may remain important areas of capital investment.

Cross-Border Expansion

Companies may continue pursuing international deals to diversify markets and supply chains.

Private Capital

Private equity, private credit and other private-market investors will remain important sources of transaction capital.

Specialized Acquisitions

Companies may increasingly acquire specific capabilities rather than entire businesses.

Data and Intellectual Property

Data, software, AI models and intellectual property can become increasingly important components of transaction value.

The Outlook for Business Deals

The 2026 deal market is active but uneven.

PwC's global M&A outlook projects approximately $4 trillion of global M&A value for 2026, with fewer transactions but a greater concentration of value in very large deals.

Private capital is also becoming more selective. PwC's mid-year analysis reports that private-equity deal volume in Q1 2026 was broadly flat year over year, while deal value declined 14%, reflecting a more cautious deployment environment.

At the same time, AI is influencing both investment targets and transaction processes, while infrastructure associated with AI—including data centers and energy—is creating new opportunities for capital deployment.

Cross-border dealmaking is another important theme. Deloitte's 2026 survey found substantial interest in international transactions, while emphasizing the need to manage compliance, tax, supply-chain and revenue-synergy risks.

These trends suggest that modern dealmaking is increasingly connected to technology, infrastructure, capital efficiency and strategic transformation.

Conclusion

Deals are one of the main mechanisms through which businesses grow, reorganize and compete.

Mergers and acquisitions can provide scale and new capabilities. Venture capital can finance emerging companies. Private equity can provide growth and acquisition capital. Strategic partnerships can open new markets without requiring full ownership. Debt and private credit can finance expansion and acquisitions.

In 2026, artificial intelligence is becoming a major force across the deal ecosystem. It is influencing acquisition targets, valuation, due diligence, financing, infrastructure investment and post-deal value creation.

At the same time, dealmakers must navigate interest rates, geopolitical uncertainty, regulation, financing costs, valuation differences and integration challenges.

A successful deal is therefore about more than agreeing on a price. It requires strategic planning, accurate valuation, rigorous due diligence, appropriate financing, effective negotiation, regulatory compliance and disciplined execution after closing.

As technology and capital markets continue to evolve, deals will remain a central mechanism for creating partnerships, transferring ownership, deploying capital and reshaping the global business landscape.

Frequently Asked Questions

What is a business deal?

A business deal is an agreement between parties involving the exchange of money, assets, ownership, services, rights or other economic value.

What is M&A?

M&A stands for mergers and acquisitions. It describes transactions in which companies combine, one company acquires another, or ownership interests change.

What is due diligence?

Due diligence is the detailed investigation of a company, asset or transaction before the deal is completed.

How are acquisitions financed?

Acquisitions can be financed using cash, debt, equity, private credit, seller financing or combinations of these sources.

What is a strategic partnership?

A strategic partnership is an agreement between businesses to cooperate in areas such as technology, distribution, marketing, manufacturing or research without necessarily combining ownership.

What is a private-equity deal?

A private-equity deal involves a private-equity investor providing capital to or acquiring an interest in a company.

How does AI affect business deals?

AI can influence which companies are acquired and can also assist with sourcing, due diligence, valuation, research, document analysis and post-deal integration.

What are the biggest risks in a business deal?

Major risks include overvaluation, financing problems, regulatory restrictions, integration difficulties, technology issues, customer losses, employee departures and changing economic conditions.

Are cross-border deals more complicated?

They can be because they may involve multiple legal systems, currencies, tax regimes, regulatory authorities, political environments and supply chains.

What is the 2026 dealmaking outlook?

Current 2026 research points to significant deal value but uneven activity, with large transactions, AI, infrastructure, private capital and cross-border opportunities playing important roles.