Norton Rose Fulbright and Mergermarket released the fourth edition of their Global M&A Trends and Risks report, surveying senior executives across corporates, large PE firms, and major investment banks. 52% expect global dealmaking to rise in 2026 relative to 2025, including 20% who forecast a significant increase. That is a sharp turn from last year, when only 38% expected activity to climb. AI is the engine again. Technology leads cross-border growth at 67%, well ahead of industrials and energy. 78% of respondents now expect AI to offer the most attractive dealmaking opportunities this year, up from 60% in 2025. Regional optimism is selective but real. The US and Europe rank among the strongest markets, with 48% and 43% of respondents anticipating a significant increase in deal activity. Canada stands out on its own, with 57% expect M&A activity to increase, making it one of the most positive regions globally. The headline shift is what slows deals down, not what drives them. Valuation gaps are forecast as by far the biggest obstacle to completing deals, cited by 48% as a top-three challenge. That puts them ahead of geopolitical uncertainty at 39% and financing constraints at 37%, the first time in recent years valuation gaps have ranked as the primary concern. Buyers are also reaching for protection. 58% expect greater use of reps and warranties insurance in 2026, including 32% who anticipate a significant increase. What This Means For Lower Mid-Market Optimism at the top of the market does not close the price gap at the bottom. When buyers and sellers cannot agree on a number, the deal stalls or dies, and that friction sits heaviest on smaller transactions where one normalization adjustment can move the whole valuation. The read-through is direct. A credible Quality of Earnings review is how you anchor price to sustainable earnings instead of a seller's adjusted EBITDA story. More appetite plus the widest valuation gaps in years means more deals that turn on the quality of the diligence behind them. The rising use of reps and warranties cover points the same way. Buyers want the numbers verified before they sign, not after.