March 19 2026 | Deals | M&A Advisors | North America | Technology | Investment Banking
Key takeaways: 2026 M&A trends and leadership
- Differentiated IP over scale: Buyers in the sub-$50M revenue tech space aren't simply chasing growth — they are hunting for unique, differentiated intellectual property that can genuinely move the needle for larger incumbents.
- AI is now a deal-table staple: Every client conversation now includes a deep dive into AI strategy. Buyers and investors want to understand not just whether a business uses AI, but how it is embedded into the product roadmap.
- Supply chain scrutiny is shaping deals: Post-Trump tariff shifts and geopolitical realignments have made the origin of components and products a critical factor in deal due diligence.
- Complex deal structures are on the rise: Protracted closes, increased equity roll-overs, and milestone-based arrangements are becoming the new normal as buyers exercise greater caution.
- AI is transforming advisory itself: From research and analysis to crafting tailored acquirer materials, firms like GrowthPoint are integrating AI into every stage of the deal process to deliver sharper, faster engagement.
"Buyers aren't just looking for scale – they want unique IP that can move the needle."
Alex Loukas, Managing Director of GrowthPoint Technology Partners, has a clear-eyed view of what is driving M&A momentum in the technology sector heading into 2026. Headquartered in San Francisco, GrowthPoint is a boutique investment bank specialising in M&A and capital raise advisory for tech firms with sub-$US50 million in revenue. Its clients span cyber security, infrastructure, cloud and B2B software, and are based everywhere from North America and Australia to Western Europe and Africa.
The return of deal appetite
After a period of hesitation, Loukas sees renewed energy in the market. Healthy activity in the latter part of 2025 looks set to continue through 2026, as high-tech leaders who have been biding their time begin to go to market in earnest. While mega deals centring on white-hot AI technologies continue to command headlines and extraordinary valuations, Loukas is equally attentive to what is happening at the other end of the market. For smaller tech businesses with genuinely differentiated IP, the appetite from strategic buyers remains strong — and, in many cases, growing.
Key areas of focus for 2026
Loukas and his team have several themes firmly in their sights for the year ahead. Artificial intelligence sits at the top of the agenda — not as a novelty, but as a core lens through which every deal is now evaluated. "It's a conversation we now have every day with our clients and potential investors," he says. "Buyers and investors want to understand not just if a business is leveraging AI, but how it's woven into the product roadmap. It's become a key element of every deal."
Built environment software — targeting construction, building management and field services — is another sector Loukas expects to attract sustained interest, driven by customers' growing need to contain the burgeoning cost of constructing and managing infrastructure. Physical and cyber security tools will also command significant attention. "There's increasing awareness of the need to secure locations and protect people and devices," he says, "and we think that's only going to increase."
On deal structure, Loukas flags a notable shift toward greater complexity. "We're seeing an increased level of equity and roll-over considerations, rather than full cash deals," he notes. For some clients, milestone-based arrangements can create meaningful upside; for others, they introduce a layer of complexity that is not always welcome.
Supply chains, tariffs and geopolitical realignment
One consequence of the Trump-era tariff landscape that Loukas watches closely is its impact on manufacturing and sourcing decisions. Many tech product businesses that previously manufactured in China have relocated their factories to North America or to regions more closely aligned with the US politically. This shift has made supply chain transparency a due diligence priority. "Understanding where components and products are coming from at the source has become very important," Loukas says. "Buyers want certainty on where components and products originate, especially in the wake of tariff shifts and geopolitical realignments."
AI in the advisory room
Fittingly for a firm that supports businesses on the cutting edge of technology, GrowthPoint has integrated AI extensively into its own deal processes — and Loukas expects the broader advisory industry to follow. From research and analysis to the crafting of personalised presentations for strategic acquirers, the tools are reshaping how deals are prepared and executed. "At GrowthPoint, we've integrated AI into every stage of our process — from research and analysis to crafting tailored materials for acquirers," he says. "Reducing manual effort creates sharper, faster and more meaningful engagement with investors and buyers."
For Loukas, the throughline connecting all of these trends is simple: in an increasingly complex and scrutinised deal environment, the advisors and founders who succeed will be those who combine differentiated thinking with rigorous preparation — and who understand that in today's market, the detail of a deal matters just as much as the headline number.
