Nation-Building Drives Canadian M&A Surge in 2026: KPMG Survey

The **Canadian M&A Surge** is set to boom, according to a new KPMG survey, highlighting a significant trend driven by nation-building efforts and ambitious plans from business leaders for substantial acquisitions. This news signals a strong year ahead for the Canadian M&A landscape.

Government Investment Fuels Canadian M&A Surge Appetite

The federal government’s agenda is a major catalyst, including substantial government investment Canada in housing and defense. Infrastructure spending is also key, with $115.2 billion allocated to infrastructure over five years, encompassing transit and digital infrastructure. The government anticipates over $1 trillion in private investment, and this public-private synergy is expected to significantly spur M&A activity, contributing to the overall **Canadian M&A Surge**. Deal appetite returned in late 2025, bouncing back after trade war shocks.

Economic Outlook Supports Canadian M&A Surge

Several factors bolster the M&A forecast for this **Canadian M&A Surge**. Cautious optimism surrounds the economic outlook Canada. Interest rates remain stable, keeping capital affordable. Demographic shifts also play a role, alongside higher investor confidence. Stabilized margins improve outlooks, and a great wealth transfer is accelerating, mobilizing more buyers. Private equity Canada firms are also showing increased activity, further fueling the M&A environment.

Mid-Market Deals and Key Sectors Drive the Canadian M&A Surge

Deal activity will especially impact the private mid-market deals. Businesses are actively seeking growth opportunities, and nation-building will create M&A hotspots, contributing to the **Canadian M&A Surge**. Key sectors include infrastructure M&A and energy. Critical minerals and defense sector deals are also targeted, with housing projects driving further M&A. Investors seek scale and capabilities, with AI-enabled digital infrastructure also a focus, spurring M&A in related companies. Businesses servicing major projects will see consolidation.

Business Leaders Plan Major Moves Amidst Canadian M&A Surge

A KPMG survey of 252 business leaders reveals plans that underscore the **Canadian M&A Surge**. Thirty-three percent plan a major acquisition within the next 18 months. For private or PE-backed companies, this number is higher, with thirty-six percent intending to acquire. Companies are looking to increase their acquisition activity, reflecting a tone for stronger Canadian trade and a desire to diversify from U.S. reliance.

A Look at Recent Business News Shaping the Canadian M&A Surge

Recent business news demonstrates dealmakers preparing for action, supporting the **Canadian M&A Surge**. Marco Tomassetti of KPMG notes this trend, while Neil Blair sees an opportune year. Domestic deals are gaining momentum, with a focus on Canadian-to-Canadian trade being important. The environment is ripe for strategic moves, and businesses are positioning for future growth. This proactive approach is shaping the market and driving the continued **Canadian M&A Surge**.