M&A Market Wrap January 2026

Key Trends

Activism and governance‑driven repositioning dominated M&A discourse in late January. Across 15 end‑of‑month daily snapshots (Jan 27–31), activism was referenced in 13 entries and Berkshire Hathaway’s potential sell‑down of Kraft Heinz was explicitly cited in 11. A late‑month tech repricing (noted twice on Jan 31) and falling software valuations were flagged as catalysts for strategic deal activity, especially bolt‑on and consolidation opportunities. Geopolitical frictions were mentioned once (Jan 30) as a constraint on cross‑border transactions.

Notable Events

Recurring market movers included activist campaigns (notably at BlackLine), board shakeups and repeated hints that Berkshire may trim its Kraft Heinz stake. Those items, combined with reported compression in software multiples, generated targeted sell‑side activity and renewed deal chatter across governance‑sensitive large caps.

Performance

Price action was uneven and sector‑concentrated: software names saw valuation compression, while governance‑sensitive large caps experienced re‑ratings. Snapshots describe episodic price swings and heightened deal chatter around activist filings and Berkshire commentary; volatility and intra‑sector dispersion were concentrated in software and consumer‑staples proxies rather than broad markets.

Outlook

Expect sustained governance‑led M&A and opportunistic buying in discounted software assets. A formal Berkshire sell‑down would likely trigger further portfolio reshuffles and create deal catalysts in consumer staples; cross‑border flows should remain vulnerable to geopolitical and financing headwinds. Key indicators to watch: activist calendars and board outcomes, software multiples, and credit/financing conditions.