2021 was a wild year for M&A deals. Money was flowing and deals were easy. But reality set in, and companies are more discerning. In 2026, deals are red hot, however quality is king. Jason Stone at Dentons Davis Brown gives his 2026 outlook on M&A.
Stone is considered one of the best lawyers in America for 2026. He explains how deals work, why building a team in advance is vital, and what common areas will derail a deal. He also explains tariffs and international volatility aren’t just pausing some international deals, but killing them entirely. If you’re entering M&A territory this year, you can’t miss this discussion.
M&A Landscape in Iowa
The M&A landscape has shifted significantly since the frenzy of 2021, moving away from speculative volume toward a disciplined focus on business quality and predictable earnings. Jason Stone, a prominent attorney with Dentons Davis Brown, explains that while deal volume and values have slipped from their historic peaks, the market is beginning to stabilize as buyers and sellers slowly align their expectations. Stone notes that the current environment is defined by a “quality focus,” where investors prioritize high-revenue plays and clear paths to profitability over the “option-like” speculation often seen in venture investing.
Predictability and the Impact of Global Policy
A significant hurdle in the modern market is the unpredictability of international trade policy. Stone highlights that tariffs have become a more permanent fixture than many anticipated, creating a gap in how buyers and sellers view the future. This volatility has led to several failed deals, particularly in industries heavily affected by cross-border trade. Domestic service industries, such as healthcare, senior living, and hospital systems, remain “hot” because they are largely insulated from these international pressures. Stone emphasizes that deal-making requires a shared vision: “To do a deal, both the buyer and seller have to see the same future.” Despite these challenges, capital availability remains high, with plenty of “dry powder” and a debt market that has proven resilient against interest rate increases.
The Human Element and Strategic Teams
In the Iowa market specifically, Stone sees M&A driven by external pressures, such as owners reaching retirement age or small businesses struggling to access credit markets. To navigate these complexities, he advocates for a robust team of investment bankers, accountants, and lawyers early in the process. He warns against “baked” letters of intent that may contain material issues, noting that “The buyer expected a certain thing that just wasn’t delivered when they opened up and looked under the hood.” Ultimately, Stone views M&A as a collaborative effort rather than a litigious one. “Most buyers and sellers are friendly when they come to the table and they want to make the deal work and they wanna make it work in a way that’s good for both,” he concludes.
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