The North American M&A market entered 2026 with strong momentum after a robust 2025, but renewed uncertainty around AI disruption, tariffs, energy prices, and interest rates tempered activity during the first half of the year. In this episode of Bundy Group Insights, Managing Director Stewart Carlin is joined by Kyle Walters, a private equity analyst at PitchBook, to examine what the latest transaction data says about the health of the market.

The conversation explores the gap between headline deal value and underlying deal count, the different behavior of strategic acquirers and private equity sponsors, and sector trends across healthcare, technology-enabled services, energy, and infrastructure. They also discuss how AI is disrupting some business models while creating new demand for power, data-center infrastructure, and related services.

They close with a look at privately held, founder-owned businesses, which continue to represent the largest source of private equity deal activity. Kyle and Stewart discuss why these companies remain attractive to buyers and how owners can strengthen value through a defensible growth story, recurring revenue, leadership depth, reduced owner dependency, and better historical backlog and pipeline records.

Key Takeaways

1. Deal count remains relatively strong even when fewer mega-deals make aggregate M&A value appear softer.
2. Strategic acquirers have been more active than private equity sponsors during periods of heightened uncertainty, though sponsor activity could rebalance as visibility improves.
3. Private equity interest is concentrating on resilient, moat-protected businesses with recurring revenue, hard-to-replace assets, embedded workflows, or other defensible characteristics.
4. Founder-owned and privately held businesses continue to account for the largest share of private equity deal sourcing and remain attractive across market cycles.
5. Owners can improve transaction readiness by reducing owner dependency, strengthening the management bench, documenting historical backlog and pipeline trends, and clearly articulating a durable growth story.

Key Insights

• Headline deal value can distort the market picture. Fewer mega-deals do not necessarily mean overall transaction activity has weakened to the same degree.
• AI is creating a bifurcated market, pressuring low-switching-cost workflows while supporting infrastructure and businesses with entrenched data, systems, or complexity.
• Healthcare M&A remains uneven: physician practice management has faced reimbursement and regulatory headwinds, while healthcare technology has shown greater resilience.
• The 'picks and shovels' around AI are drawing capital, including energy, grid infrastructure, data-center support, and related service businesses. Predictable revenue, high switching costs, team quality, low owner dependency, and a defensible moat can matter as much as rapid top-line growth.

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In this episode of Bundy Group Insights, Managing Director Clint Bundy welcomes back Alex Chausovsky, President and CEO of 3DM Consulting and Bundy Group's economics and markets partner, for another installment of "Alex's Analysis." Alex shares his perspective on an economy that has remained remarkably resilient despite tariffs, geopolitical conflict, persistent inflation and other disruptions. He explains why that resilience doesn't tell the whole story, with some industries and higher-income consumers continuing to perform well while sectors tied to housing, automotive and other interest-rate-sensitive areas remain under pressure.

Clint and Alex also explore the growing importance of geopolitical risk and global supply-chain chokepoints. From disruptions in the Middle East to the potential consequences of instability in the Indo-Pacific, Alex discusses why business leaders need to think differently about strategic planning. Rather than relying on a single long-term plan, he encourages owners and executives to consider multiple possible scenarios and understand in advance which operational, pricing, inventory and supply-chain levers they could pull in response.

The conversation closes with a look at one of the biggest forces shaping the U.S. economy: AI and data-center infrastructure investment. Alex examines the extraordinary scale of current investment in data centers, energy, water, grid infrastructure and related technologies and explains why he believes the opportunity has staying power. For business owners serving these markets, Clint and Alex discuss balancing the opportunity to capitalize on strong demand with the need to remain prudent and diversified as the market evolves.

Key Takeaways

• The U.S. economy continues to demonstrate resilience, but performance remains highly uneven across industries and consumers.
• Geopolitical disruption and supply-chain chokepoints have become increasingly important strategic considerations for business owners.
• Businesses may benefit from scenario planning that prepares them for multiple possible outcomes rather than relying on a single long-term strategy.
• Leading indicators currently point toward relative economic stability, with the potential for continued growth into 2027.
• AI and data-center infrastructure remain significant growth areas, creating opportunities for companies providing equipment, automation, energy and other supporting services.

Episode Insights

• The economy is increasingly K-shaped. Aerospace, defense, automation and AI-related infrastructure are among the stronger areas, while housing, automotive and other rate-sensitive sectors continue to face challenges.
  
  
• Consumer spending is also divided. Higher-income households are responsible for a growing share of consumption, while many other consumers are becoming increasingly price-sensitive and selective about where they spend.
  
  
• Supply-chain risk extends far beyond shipping. Disruptions at major global chokepoints can ripple into energy, chemicals, manufacturing inputs, food production and other areas that ultimately affect company margins and pricing.
  
  
• Business strategy needs to become more adaptable. In an environment of continuing geopolitical and economic uncertainty, leaders should consider potential scenarios and determine ahead of time how they would respond.
  
  
• AI infrastructure has become a major economic force. Investment now reaches well beyond data centers themselves into power generation, water, grid improvements, battery storage, automation and other supporting systems, creating opportunities across a wide range of industries.

ℹ️ Learn more about Bundy Group by visiting bundygroup.com.

The automation, industrial technology, and control systems integration (CSI) sectors continue to experience unprecedented growth, fueled by increasing demand for robotics, AI, IoT, reshoring initiatives, and operational efficiency. In this episode of Bundy Group Insights, Managing Director Clint Bundy shares his perspective on the forces driving investment activity before moderating a panel discussion recorded live at the Control Systems Integrators Association (CSIA) Conference in Baltimore.

Joining Clint are Andy Wilson, President of the Engineered Control Solutions Division at SJE, and Jordan Frenkel, Director at Bundy Group. Together, they discuss what strategic and private equity buyers look for in acquisition targets, the factors that increase or diminish company value, and why a disciplined, competitive sale process consistently delivers stronger outcomes for business owners. The conversation also explores valuation expectations, cultural alignment, leadership continuity, and common pitfalls that can derail transactions.

The episode concludes with a real-world case study examining the successful sale of Lane Tech to SJE. The panel reflects on how thoughtful preparation, a targeted buyer process, and a strong cultural fit led to a successful transaction and post-acquisition integration. Whether you're actively considering a sale or simply planning for the future, this episode offers practical guidance on building a more valuable business long before it's time to transition ownership.

Key Takeaways

• Automation and control systems integration remain among the most attractive sectors for both strategic acquirers and private equity investors.
• Business value extends beyond financial performance—leadership depth, customer diversification, operational systems, and company culture all play critical roles.
• Running a structured, competitive sale process typically leads to higher valuations, stronger deal terms, and better long-term partners.
• Successful acquisitions depend on thoughtful post-close integration that preserves culture, talent, and customer relationships.
• Owners who begin preparing years before a transaction are consistently positioned for stronger outcomes and greater optionality.

Key Insights

• Buyer demand continues to outpace supply as capital flows into automation and industrial technology businesses.
• Consistent profitability and recurring, diversified revenue remain two of the strongest drivers of valuation.
• Culture matters. Both buyers and sellers should evaluate long-term alignment—not just purchase price.
• Preparation creates leverage. Strong financial reporting, scalable systems, and a capable leadership team reduce risk during diligence.
• The best transactions aren't necessarily the highest-priced ones. The ideal outcome balances valuation, deal structure, certainty of close, and strategic fit.

ℹ️ Learn more about Bundy Group by visiting https://bundygroup.com.