2026 Lower Middle Market M&A Outlook: Valuations, Deal Activity & Market Trends
With 70.5% of dealmakers expecting stronger 2026 activity, the market is decisively pivoting from valuation exuberance to disciplined underwriting—operational risk concerns doubled while stretch-valuation willingness collapsed from 25% to 11.1%. This repricing favors operators with proven value-creation playbooks and dry powder to acquire at sustainable multiples.