Dealmaking Outlook for 2026 Remains Positive Despite Current Uncertainty

The ongoing conflict in Iran and resulting geopolitical uncertainty have led to a temporary slowdown in dealmaking, according to Amit Nayyar, Co-Head of EMEA Technology Investment Banking at Citi. However, Nayyar believes that this pause is only a brief setback, and 2026 is still poised to be a significant year for mergers and acquisitions. As reported by Bloomberg, Nayyar’s assessment is based on the current state of the market, which remains “selectively open” despite the challenges posed by global events.

Impact of Geopolitical Uncertainty on Markets

Analysts note that the war in Iran has introduced a new level of complexity to the global economic landscape, making it difficult for investors to navigate. The uncertainty surrounding the conflict has led to a decrease in dealmaking activity, as companies and investors adopt a wait-and-see approach. Nevertheless, observers point out that the market is not entirely closed, with certain sectors and regions continuing to attract investment. According to Nayyar, the pipeline for initial public offerings (IPOs) in both the US and Europe looks healthy, suggesting that companies are still preparing to go public despite the current uncertainty.

Why the Dealmaking Pause is Temporary

Experts suggest that the dealmaking slowdown is largely a result of the market’s need to absorb the economic implications of the war in Iran. As the situation continues to evolve, investors and companies are taking a cautious approach, waiting for clarity on the potential outcomes and consequences. However, the move signals that the market is not entirely risk-averse, and investors are still willing to engage in dealmaking activity in certain sectors. Nayyar’s comments, as reported by Bloomberg, indicate that the market is likely to rebound once the uncertainty surrounding the conflict begins to clear.

IPO Pipeline Remains Strong

The health of the IPO pipeline in the US and Europe is a positive indicator for dealmaking activity in 2026. Analysts note that a strong pipeline suggests that companies are confident in their ability to attract investors and raise capital, even in uncertain market conditions. According to sources, the pipeline for IPOs is looking particularly robust in the technology sector, which has historically been a driver of dealmaking activity. As the market continues to evolve, observers will be watching to see how the IPO pipeline develops and whether it will help to drive a resurgence in dealmaking activity.

What to Watch Next

As the situation in Iran continues to unfold, investors and companies will be closely watching for signs of clarity and stability. Upcoming developments, such as changes in government policy or shifts in the global economic landscape, will be crucial in determining the trajectory of dealmaking activity in 2026. According to Nayyar, the market is likely to remain “selectively open” in the short term, with investors focusing on specific sectors and regions that offer attractive opportunities. As reported by Bloomberg, Nayyar’s comments suggest that 2026 is still poised to be a significant year for dealmaking, despite the current uncertainty.