March 27 2026 | Deals | M&A Advisors | Europe | Professional Services
Key Takeaways: 2026 trends and outlooks
- Consumer and tech drive the base: Consumer market transactions remain the dominant force in Belgian M&A, with the start-up and scale-up ecosystem around Ghent and Liège adding meaningful momentum to the pipeline.
- Dry powder is abundant, but scrutiny is rising: Investors are well-capitalised and fund sizes are growing, but sellers should expect longer lead times and more rigorous due diligence processes in 2026.
- Exit pressure will unlock deal flow: LP appetite for cash returns — following protracted holding periods — will be a primary catalyst for activity, whether through real exits, continuation funds or dividend recapitalisations.
- Defence and dual-use tech create new opportunities: The Belgian government's plans to establish a sovereign wealth fund focused on defence investment are expected to generate deal opportunities for domestic innovators and investors in dual-use technologies.
- AI is reshaping the advisory model: Deloitte and its peers are investing heavily in AI and automation to accelerate insights and improve deal efficiency — a shift that will redefine how M&A teams operate through 2026 and beyond.
"The market is expecting returns — cash returns — so there will be more deal activity in the next couple of years just for that."
Toon Peeters, M&A Partner and financial due diligence specialist at Deloitte's Belgian office, sees a market at an inflection point. With the bulk of his work spanning both buy-side and sell-side mandates for private equity investors, Peeters has a front-row view of where Belgian M&A is heading. His outlook for 2026: steady growth in small and mid-market activity, driven by a combination of LP pressure, abundant capital and a burgeoning innovation sector — tempered by rising deal complexity and geopolitical uncertainty.
Consumer strength and the start-up surge
The foundation of Belgian M&A activity in 2026 looks familiar. "In 2025, consumer market activity accounted for the majority of transactions and that will remain an important driver," Peeters says. But layered on top of that established base is something newer and more dynamic: a thriving start-up and scale-up ecosystem centred around Ghent and Liège, supported by a cluster of research institutions and innovation centres. Among the most anticipated developments is The Brain, an AI hub slated to open in 2027, expected to host more than 600 high-tech specialists.
"There are some quality companies in this sector looking for funding and deal activity, and that's driving momentum," Peeters says. "We see a strong, positive vibe with a lot of investor activity in the start-up and scale-up phases. Some of those scale-ups are delivering results and expanding very strongly, and valuations are reflecting that. We've seen very promising trends there and we expect that to continue."
Defence, dry powder and the return of exits
Beyond the innovation economy, a new source of deal opportunity is taking shape. The Belgian government's plans to create a sovereign wealth fund focused on defence investment are expected to generate openings for homegrown innovators — and for investors who see value in dual-use technologies that serve both commercial and defence purposes.
At the larger end of the market, while most activity will continue to occur in the small and mid-cap space, Peeters expects a handful of €1 billion-plus deals to materialise in 2026, as they do most years. Capital availability is not the constraint. "There's an abundant level of dry powder in the market across the investor community," he says, with fund sizes continuing to grow and both international players eyeing Belgium and local investors pursuing opportunities outward via platforms and targeted transactions.
The more consequential driver of deal flow, however, may be the mounting pressure on fund managers to return capital. After unexpectedly long holding periods, limited partners are demanding results. "The market is expecting returns — cash returns — so there will be more deal activity in the next couple of years just for that," Peeters notes. That pressure will manifest through a range of exit structures: real exits, continuation funds and dividend recapitalisations are all on the table.
Navigating complexity: geopolitics, AI and talent
Not everything in Peeters' outlook is straightforward. Geopolitical tensions and sudden shifts in trade policy have become structural features of the deal environment, not peripheral concerns. "Their potential impact has become a core consideration in every transaction of any size," he says — a reality that adds both complexity and lead time to processes that were already demanding.
On the other side of the ledger, technology is beginning to meaningfully reshape how deals get done. AI and automation are increasingly integrated into advisory workflows, and Deloitte is leaning in. "From a Deloitte point of view, we're investing hugely in that technology," Peeters says. "It's helping us gain faster access to insights for our clients and it will definitely be a game changer for all our M&A teams."
Yet technology alone cannot solve everything. Securing and retaining people with genuine sector expertise and deal management capability remains one of the industry's most persistent challenges. For Peeters, the formula for staying competitive is clear: "Sector expertise, talent and technology adoption are the 'must haves' to win in this market — and we need to make sure we remain frontrunners in all three."
