According to Reuters, the global mergers and acquisitions market exploded in 2025, hitting $4.6 trillion in announced deal value. That’s a massive 49% jump from 2024 and the highest figure since the historic peak in 2021. The data from the London Stock Exchange Group shows a record 68 deals worth over $10 billion each, the most since 1980. Top law firms like Kirkland & Ellis and Latham & Watkins saw their advised deal values more than double, with Kirkland working on $829 billion worth of transactions. As 2026 begins, dealmakers at these firms are “highly optimistic,” with one leader describing a “bulging pipeline” of work that suggests this year could be even busier.
The Elite Feast
Here’s the thing that really stands out in this report: the market isn’t just hot, it’s incredibly top-heavy. Four firms—Kirkland, Latham, Wachtell, and Skadden—each advised on over $600 billion in deals. The average for the rest of the top 20 was about $232 billion. That’s a staggering gap. As Kirkland’s Michael Weisser put it, there’s a clear “bifurcation” and a “flight to the top.” It seems when the stakes are this high, with deals getting more complex and global, massive corporations and private equity shops only want to call the very biggest names. They’re not taking chances. It’s a winner-take-most environment for legal advisers, and that stratification, as Latham’s Alex Kelly noted, is expected to continue.
Why The Frenzy Now?
So what’s driving this deal-crazed environment? The article points to interest rate cuts in 2025 as a key catalyst. Lower borrowing costs make financing acquisitions easier and make corporate cash piles more active. And the sentiment is that there’s “a lot of room to go downward” on rates, which paints a rosy picture for 2026. But I think it’s more than just cheap money. There’s a pent-up demand element after a slower period. Companies are making big, strategic bets on consolidation, tech transformation, and supply chain security. Private equity firms, sitting on mountains of “dry powder,” are finally pulling the trigger. When you combine available capital with strategic urgency and favorable economics, you get a $4.6 trillion year.
The 2026 Outlook
The optimism for the new year isn’t just vague hope. The sources here are neck-deep in it. Wachtell leaders said they’re “neck deep in ongoing deals, and the pipeline is bulging as well.” That’s about as direct a signal as you can get. Surveys from banks like Citizens Financial, and bullish comments from Goldman Sachs and Morgan Stanley, all point in the same direction: more activity, especially among midsize companies. Basically, the engine is already running. The real question might be sustainability. Can this pace hold without overheating or running into regulatory pushback? For now, the top law firms are staffing up and clearing their calendars, betting the answer is yes.
