By Guest commentary Friday, May 8th, 2026

By Greg Bland & Luiz Vilera 

Anticipation is building for another dynamic year in global mergers and acquisitions (M&A). According to a January 2026 Boston Consulting Group report, global M&A values climbed 31% between 2024 and 2025 to reach $3 trillion, with 33,000 majority M&A deals closing last year. Much of that activity occurred in the second half of the year, with a 40% higher aggregate deal value compared to the first half of 2025.

Buoyed by the long-awaited market rebound, optimism is growing in 2026, with 80% of companies telling Deloitte they foresee an increase in the number of deals they will close this year. 2026 presents opportunities for middle market companies, whether they are steering a family-owned business through succession planning or looking to scale their enterprise. 

Across the Central Coast, we’re seeing M&A deal momentum remain active so far this year. This is especially true for companies in agriculture and other food-related businesses, as we are seeing some of our local commercial banking clients using M&A to diversify products and grow strategically. 

There has also been a surge in the world of Advanced Aviation and the broader low-altitude economy across the Central Coast, with six aerospace and advanced aviation companies headquartered in San Luis Obispo County drawing major national and international investment, acquisitions and federal contracts in the past year and a half.

With both strategic and financial buyers looking to transact, the middle-market deal activity we see in the tri-county region is expected to continue to be strong. In fact, capital markets are showing their best start since 2021.

It’s become clear that M&A is a strategic undertaking, not just a transaction, and today’s market will require clarity and capital in near-equal measures. This year, leaders should consider the following. 

DIVERSIFIED PRODUCTS & SERVICES
Relying on a single revenue stream exposes a business to market swings. If demand for the product line dips, the impact is felt companywide. M&A can offer an expedited path to resilience by expanding a company’s portfolio of products and services. Acquiring a business with complementary offerings presents two key benefits: diversification of products and services and insulation from volatility.

To get this right, companies can seek targets that feel like an organic extension of their current offerings. This isn’t just about getting bigger; it’s about serving clients better. The acquiring company can unlock immediate cross-selling potential to meet customer needs in a more comprehensive way, strengthening the relationship while safeguarding the bottom line.

IMPROVED COMPETITIVE POSITION
Rising input costs, labor shortages and tariffs are putting increasing financial pressure on companies. A strategic deal can instantly enhance a company’s market position, giving it the scale to absorb costs that might otherwise erode margins.

Here, efficiency drives success, whether that means bringing in a larger customer base, improving production capabilities or accessing better distribution networks. By identifying deals that remove unnecessary costs and streamline operations, companies can emerge leaner and more agile than their competitors.

INTERNATIONAL EXPANSION 
Venturing into new international markets is a powerful growth accelerator, while building a presence from scratch takes time. This is where M&A offers a strategic advantage. By acquiring a well-established entity overseas, a company gains immediate access to existing distribution networks and local market share, circumventing the slow startup phase of global expansion.

Additionally, learning how to navigate complex regulatory challenges and gaining on-the-ground expertise can take years to build organically. By expanding internationally via M&A, companies acquire local insight almost instantly. Even still, this requires careful calculation; they must weigh foreign tax environments and the cost of capital against the potential return to ensure the deal truly enhances global competitiveness.

RAPID GROWTH
Companies aiming for rapid growth without a full exit may consider partnering with a private equity firm, which offers a compelling middle ground. This approach sets the stage for operational enhancements, as it injects capital and professional expertise into the business. It also allows companies to scale operations more aggressively while retaining partial ownership, effectively setting up a future exit strategy.

Strong communication is key in the early stages. There must be clarity on what happens to leadership and employees. While valuation always matters, finding a partner who aligns with a company’s vision can be worth more than the highest bidder. 

SUCCESSFUL SUCCESSION 
M&A is also an effective tool for long-term succession planning, whether an owner is preparing for retirement or a leadership transition. Selling to a strategic buyer or investor unlocks equity and ensures the company’s ongoing stability. It also gives leaders the peace of mind to step back, confident that the business will continue to grow.

The execution of these deals often comes down to culture. There will be a downstream effect on employees and customers, so it’s essential to find a buyer with a compatible culture. Retaining employees and maintaining client relationships depend on this fit, making it a critical factor to weigh when choosing who will steward the business into the future.

Whether a company is on the buy or sell side, understanding strategic objectives, from diversification to succession, will dictate the true value of a deal. As the market heats up, those with concrete plans and goals will be best positioned to capitalize on opportunities.

• Greg Bland is the SVP Global Commercial Banking and President, San Luis Obispo, Bank of America and Luiz Vilera is the Senior Vice President, Global Commercial Banking, Bank of America