The M&A Market rebounded in 2025 but was tempered by unexpected macroeconomic shocks, notably US tariff announcements that added global trade uncertainty. Nonetheless, Switzerland saw strong growth in inbound deals and a surge in private equity bolt-on transactions.
Looking ahead to 2026, the Swiss economy is well placed to support the increased level of dealmaking activity, with GDP growth forecast at 1.1%, and low inflation at around 0.2%. The Swiss National Bank’s measured approach to monetary policy, alongside ECB easing, should maintain favorable financing conditions. Although SMEs face funding challenges, alternative lenders are increasingly filling the gap.
The supply side of the M&A market will be driven by pent-up succession cases, corporate portfolio rationalisation, and private equity divestments, due to increased pressure to return capital to investors. Simultaneously, buyers are targeting undervalued assets and turnaround opportunities, while digitalisation and supply-chain security remain key acquisition drivers. Private equity firms, flush with dry powder, are expected to sustain momentum through buy-and-build strategies and improved exit options. Swiss companies may also increase outbound deals, particularly in the US, to mitigate geopolitical risks as well as diversify and strengthen supply chains.
Sector-wise, IT services and software consolidation will continue, while luxury goods and watches may see renewed activity as buyers capitalise on attractive valuations. Life sciences and healthcare is set to continue to attract foreign investors seeking access to Switzerland’s innovation ecosystem. In contrast, traditional industrials may recover only selectively amid ongoing trade tensions.
Challenges remain significant as ongoing geopolitical uncertainty continues to cause caution among buyers and sellers. While the macroeconomic environment remains broadly supportive, risks persist, particularly if inflation rises again or central banks delay or reverse planned rate cuts, which could tighten financing conditions and slow deal momentum. Additionally, supply-chain disruptions and margin pressures continue to limit valuations, especially in tariff-exposed and traditional industrial sectors. Navigating this complex landscape will require agility and strategic foresight.
Nevertheless, Switzerland’s robust economic resilience, stable political environment, attractive regulatory framework, and openness to foreign investment provide a strong foundation. Combined with supportive monetary policies from the Swiss National Bank and the European Central Bank, companies with access to financing are well positioned to capitalise on strategic M&A opportunities and drive growth in 2026.