One third of Canadian companies planning a major acquisition in next 18 months
Dealmaking in Canada is set to rise in 2026, with 33% of Canadian business leaders planning major acquisitions in the next 18 months, according to a KPMG report.
The global accounting and consulting firm polled 252 decision-makers at Canadian companies with revenue of $50-million to $1 billion.
Private or private equity-backed firms are slightly more likely to be planning an acquisition, at 36%.
Prime Minister Mark Carney’s policy shift to nation-building and greater independence from an antagonistic United States is a key driver in spurring M&A.
“The government’s nation-building agenda will be a catalyst for M&A activity in 2026, especially in the private mid-market, where deal appetite returned in the latter half of 2025 after the shock of the US trade war wore off,” said Marco Tomassetti, president of the Corporate Finance arm of KPMG.
The federal government’s infrastructure-oriented agenda, cautious optimism about Canada’s economic outlook and a steady interest rate environment will underpin deal activity. In addition, succession-related divestments as Canada’s boomer cohort continues to retire will further drive M&A.
“The steady outlook for interest rates will keep capital affordable and accessible, which is positive for financing deals,” Tomassetti said. “Higher confidence among investors – underpinned by stabilized and, in many sectors, improving margins – and an acceleration of the great wealth transfer will mobilize more strategic and financial buyers such as private equity this year.”
The federal government’s nation-building agenda includes $115.2 billion over the next five years for infrastructure, including $54 billion for core public assets like transit and digital infrastructure. This sizable stimulus will drive M&A across infrastructure, energy, critical development, defence, and housing.
“Companies operating in construction and engineering, building materials and logistics, oil and gas services, advanced manufacturing and robotics and business services will see consolidation this year as firms in these sectors seek capabilities and capacity expansion to service demand,” Tomassetti said.
Domestic deals
Domestic dealmaking will get a boost in 2026, according to KPMG’s deal advisory leader Neil Blair, as momentum builds on making Canada more competitive and self-sufficient.
“Investments in infrastructure, energy, critical minerals and business services will create a growth environment where bigger companies will be needed to take on complex projects. This dynamic will make smaller, specialized firms highly attractive acquisition targets, while pushing larger players to scale up to meet the demands of major projects,” Blair said.
In Canada, KPMG is one of the largest M&A consultancies, having advised on 65 in the country in 2025. For comparison, Big Four counterparts Deloitte and PwC closed 56 and 35 deals respectively.
