Deal activity in the Beehive State likely to reflect national patterns
When the Utah state legislature passed the Utah Venture Capital Enhancement Act in 2003, the state’s economic landscape looked fundamentally different than it does today. At the time, private capital markets were largely concentrated on early-stage investment, with funding pathways that typically culminated in a single liquidity event through a full sale. Capital formation was narrower, and founders and investors had comparatively limited options.
Now, more than two decades later, the direct economic returns of that legislation are becoming more visible. What is clear is that Utah’s economic trajectory strengthened in the years that followed. The state developed a stronger innovation ecosystem, attracted new pools of capital, and supported the emergence of a more durable private-market environment. By 2026, Utah’s capital stack has matured and increasingly mirrors national trends in capital formation, deployment, and allocation.
The national outlook
Against that backdrop, PwC’s 2026 Deals Outlook depicts a dealmaking environment that remains active but uneven. IPO activity is increasing after a prolonged slowdown, though issuance remains concentrated among larger, higher-quality companies and select sectors. Public markets are open, but not indiscriminately so, reinforcing discipline across the transaction landscape.
Capital, however, is not sitting idle. Deployment continues across a widening range of transaction structures, including minority growth investments, sponsor-backed M&A, recapitalizations, continuation vehicles, and other private-market solutions that provide flexibility around control, timing, and liquidity. These structures reflect a market adapting to valuation gaps, higher financing costs, and uncertainty, rather than a retreat from dealmaking.
Private markets show a similarly selective pattern. Overall deal volume declined in 2025 even as equity valuations rose, underscoring an environment in which investors are prioritizing durability of earnings, strategic fit, and downside protection over pure growth narratives.
Looking ahead for Utah
Utah now benefits from a diversified capital stack that extends well beyond early-stage venture investment. Capital is available across company lifecycles, from minority growth investments and recapitalizations to sponsor-backed platform transactions and strategic acquisitions. This breadth provides businesses with greater flexibility around growth strategies, control, and the timing of liquidity events.
Looking ahead, deal activity in the Beehive State is likely to reflect national capital deployment patterns. In 2025, technology was the most active sector for dealmaking, driven in large part by significant investment. That momentum is expected to continue as companies deploy capital to support AI-enabled operations, productivity gains, and efficiency improvements. Buyers and financial sponsors are prioritizing transactions that secure access to compute power, data infrastructure, and scalable platforms. In Silicon Slopes, this dynamic is likely to favor partnerships, minority growth investments, and capital-efficient expansion over wholesale change-of-control transactions.
Health services also appear well positioned for increased deal activity. Amid regulatory uncertainty and rising medical costs, estimated to increase roughly 8.5% from 2025 to 2026 according to PwC’s Medical Cost Trend Survey, private equity and strategic buyers are pursuing targeted acquisitions and carve-outs of non-core assets. These transactions aim to improve margins, streamline operations, and deploy capital more effectively, with activity concentrating on software-enabled services that support care delivery, including AI-driven platforms, revenue-cycle management, and workforce optimization.
The banking sector is likely to be shaped by institutions’ efforts to achieve scale while modernizing technology and improving operational efficiency. Banks are using M&A to expand geographic reach, deepen customer relationships, and integrate advanced digital services. At the same time, regulatory shifts may make transaction execution more attractive. Credit quality is likely to remain an important moderating factor for regional and mid-sized institutions, reinforcing longer-term consolidation trends rather than rapid expansion.
No crystal ball
Dealmaking trends ultimately reflect broader macroeconomic conditions. For 2026–2027, expectations center on moderate growth and easing inflationary pressure. Potential cuts in the Federal Reserve’s rate cycle could lower the cost of capital and support capital allocation, reinforcing dealmaking momentum. Even so, macro conditions tell only part of the story. Fiscal and trade policy volatility is likely to influence deal timing, structure, and execution, favoring flexibility and thoughtful structuring over binary outcomes as investors and companies navigate an increasingly complex policy environment.
Ryan J. Dent, PwC
Ryan Dent is a Partner at PwC and has consulted with and supervised engagements of public and privately owned companies for 26 years. Ryan has focused his career on providing services primarily to financial services companies, including banking, broker dealer, asset and wealth management and fin-tech clients. Ryan is currently the Managing Partner for the PwC Salt Lake City office.