“It’s encouraging to see the Canadian M&A market moving in a positive direction, with dealmakers demonstrating renewed confidence,” says Sean Rowe, National Deals Market and Value Creation Leader at PwC Canada. “The consistency of transactions reflects a market that is not only resilient but also strategically focused on value creation. As we look ahead, the scale of deals and the momentum in local transactions signal a strong foundation for growth and innovation across key sectors in 2026.”
Domestic buyers take the lead
One of the most notable shifts is the rise of Canadian-on-Canadian deals which now represent roughly half of total transactions, and PwC expects domestic capital to continue anchoring the marketplace into 2026.
But economic uncertainty remains a headwind with real GDP contracting 1.6% annualized in Q2 2025 and forecast to grow below 1% through 2026, with unemployment hovering near 7%. Strategic consolidation remains a priority.
Michael Dobner, National Leader of Economics and Policy Practice at PwC Canada, noted: “We’re seeing dealmakers sharply focused on acquiring new capabilities that not only tackle today’s challenges but also build lasting value.”
Where the deals will happen
The federal budget in November 2025 mapped clear areas of government-supported opportunity: defence, energy, critical minerals, AI and housing. And with Ottawa signalling commitment, private investors appear ready to follow.
