A record year for M&A in 2025, with over 50,000 deals worth approximately $5 trillion,1 was driven by mega-deals that masked the slowest year for the middle market since 2020.2 Dealmaking in the middle market lifted in some sectors toward the end of 2025 and M&A momentum has continued into the new year—signaling a potential resurgence in 2026. Still, there lacks definite indicators to pinpoint the fortune of middle market M&A activity.