Datasite, a Platinum Sponsor of ACG Boston DealFest Northeast, joined hundreds of dealmakers at the region's premier middle-market M&A gathering. Recognized as the largest and most significant middle-market M&A event in the Northeast, DealFest brings together more than 800 capital providers, intermediaries, advisors, private equity investors, and strategic acquirers from across the country. The event serves as a critical platform for networking, relationship building, and deal origination across the middle market.

During this year's conference, a panel of M&A leaders gathered to assess whether the optimism that characterized the start of 2026 has translated into real market activity. Moderated by Sandra Mason, Managing Director of Capital Markets at Audax Private Equity, the discussion featured perspectives from Will Davis, Regional Director of Origination at The Riverside Company; Ashton Gillespie, Director at TM Capital; and Dan Dougherty, Vice President of Sales at Datasite.

The consensus? The market is moving, but not in the dramatic way many predicted.

A recovery defined by steady progress, not floodgates

Heading into 2026, many dealmakers anticipated a stronger M&A environment after several years of elevated interest rates, geopolitical uncertainty, and valuation dislocation. While activity has improved, panelists agreed that recovery has been more measured than explosive.

Davis described the current market as one characterized by steady activity rather than a dramatic surge in deal flow. While many expected a stronger rebound entering 2026, ongoing geopolitical uncertainty has contributed to a more measured recovery. Rather than a flood of transactions, the market is experiencing a consistent stream of activity that appears healthier and potentially more sustainable over the long term.

That perspective aligns with what firms are seeing on the ground. TM Capital remains active across industries, having closed transactions in the first quarter while launching a significant number of new processes in the second quarter. Similarly, Riverside has seen modest year-over-year growth in new deal opportunities, reflecting improving conditions while maintaining a disciplined approach to investing.

The data suggests more activity ahead

One of the more encouraging signals came from Datasite's transaction data.

According to Dougherty, while deal completion rates declined in the first quarter, the drop was less severe than many market participants expected given the broader macroeconomic backdrop. More importantly, activity within deal preparation stages is surging.

Datasite is seeing unprecedented levels of deal preparation activity, with significantly more diligence content being uploaded to virtual data rooms than in previous years. For sellers, preparing diligence materials and populating virtual data rooms is often the first tangible step toward a transaction. The increase in preparation activity suggests many companies are positioning themselves to enter the market later this year, even if they have not formally launched processes yet.

Another encouraging datapoint is that many recently closed data rooms were not associated with failed transactions. Instead, sellers appear to be pausing processes while remaining prepared to move forward when market conditions align with their objectives. According to Dougherty, these companies are continuing to maintain their materials and stay transaction-ready.

The tale of two markets continues

Perhaps the most consistent theme throughout the discussion was the ongoing bifurcation of the M&A market.

According to Davis, the divide between premium assets and the rest of the market remains firmly intact. High-quality businesses continue to attract substantial buyer interest and competitive valuations, while average-performing assets often receive a much more muted response.

This dynamic is creating challenges for both buyers and sellers. Buyers are increasingly evaluating where they possess a true competitive advantage before pursuing highly sought-after opportunities. Sellers, meanwhile, must enter processes with realistic expectations regarding valuation and buyer demand.

Gillespie emphasized the importance of aligning valuation expectations before launching a process. Sellers who enter the market with unrealistic expectations risk creating friction that can ultimately prevent a transaction from closing. Whether working with founder-owned businesses or sponsor-backed companies, establishing a realistic view of market value remains critical to a successful outcome.

Sector rotation is influencing deal flow

While technology remains an active M&A category, panelists highlighted a notable shift in investor attention.

Industrial services, commercial services, healthcare, residential services, and infrastructure-related sectors are attracting significant buyer interest. Datasite's data showed industrial and consumer-oriented businesses experiencing some of the highest deal success rates in the current environment.

At the same time, sectors that historically attracted broad investor attention are facing greater scrutiny.

Gillespie observed that many investors who traditionally focused on consumer businesses are increasingly dedicating attention to industrial and services-oriented opportunities. As a result, even strong consumer companies may need to work harder to differentiate themselves and communicate their growth story effectively during a sale process.

The panel also noted that investor priorities continue to evolve as buyers seek businesses with resilient growth profiles and strong underlying fundamentals.

Competition for quality assets remains fierce

Despite broader market uncertainty, competition for premium assets has intensified.

It was noted that many investors are increasingly moving down market in search of attractive platform opportunities. As a result, buyers are encountering competitors they historically would not have seen in certain processes, adding further pressure to already competitive auctions for high-quality businesses.

The result is a marketplace where buyers must differentiate themselves through sector expertise, certainty of execution, speed, and prior relationships, not simply valuation.

At the same time, advisors continue to report strong interest in quality assets brought to market, particularly within sectors currently favored by investors. While broad auction processes remain common, more targeted pre-marketing efforts are also helping sellers position assets effectively and generate early buyer engagement.

Looking ahead: cautious optimism remains

When asked for predictions for the remainder of 2026, all three panelists returned to a common theme: cautious optimism.

Datasite's preparation data suggests a robust pipeline of future opportunities waiting to come to market. Dougherty pointed to both elevated preparation activity and a growing number of paused, rather than abandoned, processes as encouraging indicators for future deal flow.

While geopolitical uncertainty, inflation concerns, and consumer spending trends continue to warrant attention, the panel generally agreed that the underlying factors supporting M&A activity remain intact. The expectation is for a steady pace of transactions through the remainder of the year, supported by healthy deal pipelines, active buyers, and readily available financing for quality assets

For dealmakers, that may be the defining characteristic of 2026: not a dramatic rebound, but a gradual and sustainable return to market momentum.

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