Best-in-Class Escrow Solutions Keep M&A on a Solid Footing 

Global geopolitical tensions and market volatility may be rising exponentially, but M&A is proving to be resilient, and so too is demand for industry-leading escrow solutions. During these turbulent market conditions, escrow can provide much-needed safety and security to dealmakers ahead of transaction closes, as JTC explains.

M&A rides the storm

Logic goes that in present circumstances dealmaking should be grinding to a shuddering halt, or at least slowing down, but this does not seem to be happening, at least for now.

The shifting geopolitical paradigm may be driving up energy prices, stoking inflationary fears and putting the brakes on interest rate cuts, but dealmaking is still in full swing – in fact, it is up 23% year-on-year, according to Dealogic data. ¹ The latest figures released by LSEG highlight that $1.2 trillion of M&A transactions were agreed in Q1 2026 – making it the third consecutive $1 trillion quarter for dealmaking. ² Even riskier transactions – such as leveraged finance deals – which tend to be more vulnerable to exogenous shocks – have not been thrown off course by recent events. ³

That M&A is weathering these choppy headwinds so well is because the fundamentals underpinning dealmaking are strong.

Artificial Intelligence (AI) as an M&A stimulant

It is true that certain sectors, such as software, are at risk of being disrupted by AI. It is equally true that a lot of the investments being shoehorned into AI infrastructure, e.g. hyper-scalers, are diverting capital away from M&A. However, experts are still bullish that AI will trigger a wave of dealmaking over the medium to long-term. ⁴

There are several reasons for this.

Firstly, some companies will have to make bolt-on acquisitions of data and analytics firms, or even cyber-security businesses, if they are to deploy AI at scale. ⁵

The technology’s impact on market dynamics could also play to M&A’s advantage. Should AI’s productivity benefits be fully realised, then this will help reduce costs, pushing down inflation and interest rates, and creating an environment ripe for M&A to flourish. ⁶

Private Equity dealmaking ticks over

M&A has been given a boost by the $8.6 trillion ⁷ private equity industry, which despite facing fundraising challenges, is still hungry for deals.

In 2025, buyout values hit $904 billion, fuelled by ageing dry powder and attractive market conditions for take-private transactions, whilst exits reached $717 billion, as corporate M&A accelerated and GPs offloaded their assets to generate liquidity for investors. ⁸

Private equity’s ongoing focus on dealmaking is helping to shore up M&A.

Regulation as an enabler for M&A

Longer-term, positive regulations could stimulate M&A, particularly in the EU, and none more so than the incoming 28th Regime.

Today, a company with a pan-EU footprint has to comply with the various (and occasionally contradictory) rules and regulations across all of the 27 EU member states. This fragmentation creates nothing but costs and complexity for businesses. Rather than dealing with 27 different regulatory frameworks, policymakers plan to introduce an alternative, voluntary 28th Regime, a single set of harmonised rules overseeing the formation and operation of companies in the EU.

Although progress on the 28th Regime has so far been modest, the rules- if successfully implemented – could help reduce friction for companies when carrying out cross-border business and M&A transactions.

But there are headwinds brewing….

On the surface, M&A appears to be holding up, but dig a little deeper, and you realise the market is polarised.

This is because M&A deal values have been skewed by a handful of mega transactions, involving deep pocketed companies or private equity firms with easy access to financing. The scale of some of these transactions is underlined by LSEG data, which noted there were 22 deals announced in the last three months valued at over $10 billion, a new quarterly record. ⁹

But once you strip out the mega-deals, PwC observes that mid-market or smaller transactions, which account for the bulk of M&A transactions, have been relatively flat,¹⁰ with a number of companies – both standalone and private equity-owned – still waiting to be sold. ¹¹

Should the prevailing global geopolitical uncertainty continue indefinitely, then this could also have a knock-on effect on M&A.

Some experts are beginning to report that CEOs and Boards, who were previously open to growing their businesses through M&A, are now erring on the side of caution, spooked by the recent volatility, fears about higher for longer inflation and interest rates, and valuation mismatches.

Escrow solutions can help drive successful M&A

A robust escrow solution is key if M&A transactions are to happen seamlessly in today’s markets, and this is something which leading providers such as JTC can facilitate.

As a non-bank, JTC prides itself on agility and speed, particularly when onboarding and setting up accounts for clients, which is essential for organisations working in time-pressured environments such as M&A. A high-calibre escrow will also ensure fast, accurate and secure transaction closes, especially when these transactions involve multiple parties in different locations.

Escrow plays a critical risk mitigation role during the transaction process. Through its independent oversight functionality, escrow can reduce financial, counterparty and legal risks during complex M&A deals.

JTC, acting as escrow agent, can disburse funds from the escrow account to multiple designated parties, making it an invaluable tool for mitigating counterparty risk.

Escrow can be an invaluable tool in preventing the exodus of talent post-transaction, as employee bonuses can be deposited in an escrow account and paid out over a pre-determined period or when certain milestones have been achieved.

By working with a number of select banks, JTC is also able to optimise implementation and tailor solutions around escrow deposits. These solutions are structured in a bankruptcy remote manner and ensure independent execution of the escrow agreement at all times.

Experience is an important criterium too.

The JTC team brings decades of combined escrow experience, with some members having been active participants in the earliest M&A transactions in Europe involving escrow.

In addition to M&A deals, JTC’s escrow solution also supports transactions involving investor commitments, litigation awards, milestone-based projects, carbon credit initiatives, and special purpose acquisition companies.

And finally, having obtained a Payment Services Directive 2 (PSD2) license from the Central Bank in the Netherlands, JTC’s escrow service is passported across the EU.

In today’s unpredictable world, engaging with the right escrow partner has never been more important.

¹ Reuters – March 20, 2026 – Dealmaking to pick up this year despite Iran war risks, Goldman CEO says
² Financial Times – April 1, 2026 – Record number of mega deals agreed in the first quarter of the year
³ Bloomberg – March 30, 2026 – Bankers aren’t letting the Iran war get in the way of the deal
⁴ PwC – 2026 Outlook: Global M&A industry trends
⁵ PwC – 2026 Outlook: Global M&A industry trends
⁶ PwC – 2026 Outlook: Global M&A industry trends
⁷ Preqin – December 15, 2025 – Private equity: Shaping the future of innovation
⁸ Bain & Co – February 22, 2026 – Private Equity Outlook 2026: Gaining Traction
⁹ Financial Times – April 1, 2026 – Record number of mega deals agreed in the first quarter of the year
¹⁰ PwC – 2026 Outlook: Global M&A industry trends
¹¹ Financial Times – April 1, 2026 – Record number of mega deals agreed in the first quarter of the year