M&A Spotlight: Megatrends supersede war fears

Deutsche Bank

Luke Templeman, Galina Pozdnyakova

Research

26 Pages

Deutsche Bank Research argues that structural megatrends are still driving M&A despite geopolitical uncertainty. Revenue growth has been recovering while profit margins have plateaued, making growth and efficiency deals more attractive for companies trying to reposition for the next cycle.

Key Takeaways

Megatrends Drive Deals: AI, energy security, and supply chain shifts remain active M&A catalysts despite 2026 war fears.
Growth Needs Support: Median revenue growth has recovered from the 2023 slowdown, pushing companies to seek scale through acquisitions.
Margins Look Stretched: S&P 500 net margins remain near 12%, while Stoxx 600 margins sit closer to 7%.
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