Cornerstone Business Services’ Q2 2026 Lower Middle Market M&A Report analyzes North American mergers and acquisitions, TEV/EBITDA multiples, US private equity deal activity, add-on acquisitions, debt pricing, buyer competition and deal timing. North American M&A totaled an estimated $787.0 billion across 4,476 transactions in Q2. Excluding the $250 billion SpaceX/xAI transaction that elevated Q1, deal value was essentially flat quarter over quarter, while the blended lower middle market TEV/EBITDA multiple was 7.0x.
The report also examines valuation misalignment and the growing role of artificial intelligence in M&A due diligence and business valuation. AI questions appeared in 28% of transactions below $10 million and 49% of transactions valued at $10 million or more. Buyers are evaluating AI-related revenue and margin exposure, measurable ROI, data, intellectual property, cybersecurity, vendor reliance and human validation.
