Middle Market M&A Poised for Acceleration in 2026, According to New Survey by Caber Hill Advisors

CHICAGO - EntSun -- The middle market M&A environment is entering 2026 with renewed momentum and a shift toward optimism, according to a new survey of private equity partners released today by Caber Hill Advisors. After two years of recalibration, respondents report that stabilization in 2025 is paving the way for increased transaction activity in 2026.

The survey, conducted between October 29 and November 8, 2025, gathered perspectives from partners at U.S.-based private equity firms focused on middle and lower-middle market investments.

Key takeaways include:

1. Optimism is back. 82% of PE partners expect market strength to improve in 2026.

2. Liquidity is returning, but the "frothy" pricing of 2021 is not. 58% of investors expect valuation multiples to remain flat.

3. Deal structures to share risk remain common. 48% of investors are using earnouts slightly more.

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4. Tariffs are the biggest macro concern—not interest rates. 90% of respondents reported challenges to deal flow from tariffs.

5. Quality assets win. Buyers are prioritizing A+ companies with solid financial and strong management teams over other factors.

"The data reflects what we are seeing every day in the market," said Craig Castelli, Caber Hill Advisors Founder & CEO. "Buyers are ready to transact. Capital is available, sentiment is improving, and disciplined deal structures are allowing parties to close valuation gaps. We expect 2026 to be an active year for high-quality businesses."

When asked what will drive activity in 2026, respondents pointed first to the significant amount of available capital in the market, indicating that PE firms remain well positioned to deploy funds. Broader economic growth and favorable financing were also cited as key contributors, along with ongoing industry consolidation and the growing role of AI in value creation strategies.

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For more information, download the full report: www.caberhill.com/private-equity-middle-market-m-and-a-survey-2025-26/

About the Survey

The data in this report was collected between Oct 29–Nov 8, 2025 in a survey sent to nearly 3,000 capital providers specializing in middle and lower-middle market investments in the U.S.

About Caber Hill Advisors

Caber Hill Advisors is your partner for growth. We're committed to working with business owners so they can successfully fulfill their personal and professional legacies. We draw on deep industry experience to help our clients identify and capitalize on the best opportunities available. Across the team is a well of expertise in serving small and middle-market companies in several specialty industries. If you're interested in learning more visit www.caberhill.com