M&A, IPOs, and Regulation: What Law Firms Need to Prepare For in 2026

After a period of relative quiet, the deal-making engines are revving up. Analysts project a steady rebound in Mergers and Acquisitions (M&A) and Initial Public Offerings (IPOs) heading into 2026, fueled by stabilizing interest rates and renewed CEO confidence. According to PwC’s 28th Annual Global CEO Survey, a majority of U.S. CEOs plan to pursue acquisitions over the next few years, a clear sign that deal activity is regaining momentum. This resurgence, coupled with heightened regulatory scrutiny, signals a wave of complex work ahead for law firms.

Gearing Up for the M&A Boom

The anticipated M&A boom is not a return to business as usual. It is shaped by new market dynamics and technological advancements. Law firms need to prepare for the specific legal demands these trends create.

Key M&A Trends and Their Legal Implications

1. Tech and AI-Driven Deals

Technology, particularly Artificial Intelligence, continues to be a primary driver of M&A activity. Companies are acquiring tech firms to gain a competitive edge, integrate AI capabilities, or expand their digital footprint.

• Actionable Strategy: Your firm needs specialized legal talent with deep expertise in intellectual property (IP), data privacy, and technology law. This involves a comprehensive review of the target's IP portfolio, including patents, trademarks, and proprietary algorithms. Your teams also have to conduct thorough data privacy due diligence to assess compliance with regulations like GDPR and CCPA, identifying any potential liabilities tied to data breaches or misuse. Firms that invest in legal talent acquisition for tech-savvy lawyers position themselves as indispensable partners in these high-stakes transactions.

  
  

2. Cross-Border Transactions

Globalization continues to fuel cross-border M&A as companies seek new markets and supply chain efficiencies. These deals introduce a labyrinth of international laws and regulations.

• Actionable Strategy: Build or augment your teams with lawyers who possess experience in international trade law, foreign investment reviews (like CFIUS in the U.S.), and multijurisdictional antitrust filings. It is crucial to understand the political and economic climates of the involved countries. Create a "Regulatory Roadmap" for each cross-border deal, outlining every required filing, approval, and potential roadblock in each jurisdiction. This proactive step prevents costly delays. Partnering with legal staffing firms provides flexible access to this specialized global expertise without the overhead of permanent hires.

3. ESG as a Core Due Diligence Component

Environmental, Social, and Governance (ESG) criteria are now central to deal-making. Acquirers are scrutinizing targets for ESG risks, from carbon emissions to labor practices, which directly impact valuation and post-merger integration.

• Actionable Strategy: Integrate ESG due diligence into your standard M&A playbook. This means your teams need to evaluate the target’s environmental compliance, supply chain labor practices, and corporate governance policies. Develop a checklist for assessing ESG-related liabilities and opportunities. This includes reviewing sustainability reports, compliance records, and potential litigation risks. Having lawyers skilled in ESG reporting and compliance is a significant differentiator.

  
  

Navigating the IPO Market Resurgence

The IPO pipeline is expected to flow freely in 2026, as private companies look to capitalize on favorable market conditions. Law firms advising these companies face a dual challenge: preparing clients for the rigors of public life while navigating an increasingly complex web of IPO regulations.

What Law Firms Need to Know for IPO Readiness

1. Heightened SEC Scrutiny

The Securities and Exchange Commission (SEC) has intensified its focus on disclosure accuracy, particularly concerning non-GAAP financial metrics, cybersecurity risks, and ESG matters.

• Actionable Strategy: Your IPO team must conduct meticulous due diligence to ensure the S-1 registration statement is flawless. This involves working closely with the client's finance team to validate all financial data and preparing robust risk factor disclosures that candidly address potential challenges. Create a "Disclosure Committee" internally for each IPO client, comprising legal and financial experts, to stress-test every statement before filing. This is an area where bringing in seasoned legal top talent for a project basis adds immense value.

2. The Importance of Corporate Governance

Going public demands a radical transformation in corporate governance. The SEC and investors expect a strong, independent board, transparent internal controls, and clear executive compensation policies.

• Actionable Strategy: Advise your pre-IPO clients on establishing a public-company-ready governance structure months in advance. This includes recruiting independent board members with relevant industry experience, forming audit and compensation committees, and drafting charters and bylaws that meet exchange listing standards. Host workshops for the client's management team and board on their new fiduciary duties and reporting obligations.

  
  

The Evolving Regulatory Landscape

Underpinning both M&A and IPO activity is a regulatory environment that is becoming more aggressive and complex. Law firms must stay ahead of these changes to protect their clients.

Antitrust and Competition Law

Regulators globally, including the Department of Justice (DOJ) and Federal Trade Commission (FTC) in the U.S., are taking a more interventionist approach to mergers, especially in the tech, healthcare, and energy sectors.

• Actionable Strategy: Your antitrust practice needs to prepare for longer, more detailed reviews. This involves conducting in-depth market analyses early in the deal process to anticipate potential "Second Requests" for information. Model different divestiture scenarios to have ready-made remedies for potential antitrust concerns. For firms, effective legal recruiting means finding lawyers with both litigation experience and a deep understanding of economic analysis.

  
  

Data Privacy and Cybersecurity Regulations

With data being a key asset in many transactions, regulators are laser-focused on how that data is handled. New laws are continuously emerging, adding layers of compliance complexity.

• Actionable Strategy: Your firm's responsibility extends to ensuring clients have robust cybersecurity protocols. In M&A, your due diligence must include a thorough cybersecurity audit of the target company. For IPO clients, you must ensure they have implemented and accurately disclosed their cybersecurity risk management programs. Leading legal staffing firms connect you with cybersecurity law experts who stay on the cutting edge of these regulations.

Your Next Steps to Strategic Preparation

The currents of 2026 promise significant opportunities for law firms equipped to handle the surge in M&A and IPOs. Success, however, is not a given. It demands a strategic and proactive approach to building your teams and capabilities. Firms that anticipate the legal complexities of tech deals, cross-border transactions, heightened IPO regulations, and a tougher regulatory environment not only survive but thrive.

The crucial element in this preparation is talent. Having the right people with the right expertise is the ultimate competitive advantage. This is where strategic legal talent acquisition becomes paramount. By focusing on building deep expertise in these high-growth areas, your firm positions itself as an essential partner for clients navigating this exciting and challenging landscape.

If your firm is looking to bolster its teams with the specialized legal expertise needed for 2026, contact us. We've got the legal top talent you need.

About HERS Advisors

HERS Advisors

(Honest. Ethical. Responsible. Solutions.)

is a women-owned, mission driven recruitment and consulting firm specializing in the proactive sourcing and full-cycle placement of skilled professionals in the Legal, Compliance, Healthcare IT (HIT), and Information Technology (IT/IS) sectors.