SIGNALCapital Markets·May 23, 2026, 4:00 AMSignal85Medium term

How AI has changed M&A

How AI has changed M&A

The size of deals is hitting new peaks, unloved companies are becoming sexy and PE has found a new gold mine

Why this matters
Why now

The rapid development and adoption of AI technologies have reached a point where their commercial value and transformative potential are becoming undeniable catalysts for M&A activity.

Why it’s important

This indicates a significant re-evaluation of corporate assets and market dynamics, with AI acting as a primary driver for valuation and strategic acquisitions across sectors.

What changes

AI is fundamentally altering how M&A targets are identified, valued, and what constitutes an attractive enterprise, with an emphasis on technological integration and data assets.

Winners
  • · AI-centric companies
  • · Private equity firms
  • · Acquiring companies leveraging AI
  • · Technology sector
Losers
  • · Companies without AI strategy
  • · Traditional valuation models
  • · Sectors slow to adopt AI
Second-order effects
Direct

Increased M&A activity with AI as a central theme drives valuations higher for tech-enabled firms.

Second

Consolidation occurs in various industries as companies acquire AI capabilities to gain competitive advantage.

Third

The definition of an 'unloved' or 'sexy' company shifts broadly across the economy, driven by AI integration potential rather than traditional metrics.

Editorial confidence: 95 / 100 · Structural impact: 70 / 100
Original report

This signal links to a primary source. Continuum Brief monitors and indexes it as part of the live intelligence stream — we do not republish source content.

Read at Financial Times — Technology
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