As 2025 draws to a close, the global business landscape stands at a pivotal crossroads. This year has been defined by accelerated transformation — driven by regulatory evolution, technology-enabled compliance, strategic dealmaking, and shifting market dynamics.
For multinational enterprises and sophisticated investors navigating corporate structuring, cross-border operations, and governance obligations, understanding the forces that shaped 2025 is essential to seizing opportunities and mitigating risks in 2026.
In this review, we distill the most consequential trends that emerged in 2025 and outline how they will influence business strategy and execution in the year ahead.
1. Mergers & Acquisitions: Renewed Momentum and Strategic Scale
2025 witnessed a resurgence of mergers and acquisitions (M&A) activity, driven by corporate leaders’ focus on scale, capability expansion, and technology integration. Dealmakers pushed global M&A value to near record levels, supported by looser antitrust scrutiny in key markets and strategic capital deployment. Notably, cross-border transactions surged, reflecting companies’ intent to access new markets, technologies, and competitive advantage.
What This Means for 2026
- Strategic Growth: Companies will continue leveraging M&A to accelerate growth, diversify geographies, and embed innovation into core operations.
- Deal Complexity: As regulatory regimes evolve, particularly in tax, competition, and data privacy, due diligence and deal structuring will require deeper expertise and proactive planning.
- Technology as a Driver: AI and digital platforms will not only accelerate due diligence but also reveal deeper insights that inform valuation, risk assessment, and post-deal integration.
For global corporates, aligning M&A ambitions with robust compliance frameworks will be central to maximizing value from transactions in 2026.
2. Regulatory Complexity: New Paradigms for Compliance and Tax
Regulatory frameworks worldwide became more intricate in 2025, with governments updating corporate tax, VAT, and business laws to balance competitiveness with fiscal sustainability. The UAE, for example, introduced significant amendments to its corporate and commercial laws — reinforcing its pro-business environment while clarifying tax and compliance obligations for corporations operating within its borders.
At the same time, advances in regulatory technology (RegTech) continued to reshape how companies meet compliance demands. Firms are increasingly adopting AI-powered solutions that automate Know Your Customer (KYC) processes, monitor anti-money laundering risks in real time, and align with global AML and reporting obligations.
Trend Drivers
- Digital Government Initiatives: Governments are digitizing corporate processes, enabling faster registration, data-driven reporting, and real-time monitoring.
- RegTech & AI Integration: Intelligent compliance systems are reducing manual workloads while enhancing accuracy and audit readiness.
- Cross Border Considerations: As multinational operations expand, harmonizing regional regulatory expectations — from data management to beneficial ownership disclosures — will be critical.
Implications for Corporates
Businesses that invest in compliance automation and strategic risk management will be better positioned to navigate evolving legal frameworks — and to leverage compliance as a business enabler rather than a cost center.
3. Corporate Tax: Technology, Transparency, and Transformation
Global tax regimes continued their evolution in 2025, reflecting broader economic shifts and digital transformation. Corporate tax authorities are embracing electronic invoicing frameworks and digital reporting standards that align with international tax transparency initiatives. These changes have significant implications for corporate tax planning, accounting systems, and compliance strategies.
Simultaneously, organisations are harnessing the disruptive potential of AI and automation within their tax functions. From predictive analytics to machine-assisted tax reporting, advanced technology is empowering tax teams to manage complex global tax obligations more effectively.
Strategic Takeaways for 2026
- TaxTech Adoption: Integrating TaxTech solutions will be essential for real-time compliance and strategic forecasting.
- Process Innovation: Automation will enable faster corporate tax reporting, tighter control over liabilities, and enhanced accuracy in cross-border transactions.
- Governance & Transparency: Firms that align tax planning with robust governance practices will foster greater stakeholder confidence and regulatory trust.
4. Artificial Intelligence: Transforming Corporate Services
Across sectors, artificial intelligence emerged as a defining force in 2025 — not just as a tool for innovation but as a linchpin of operational and strategic transformation. Companies are adopting AI for everything from due diligence and contract automation to predictive analytics for compliance and tax planning.
What AI Means for Global Business
- Efficiency Gains: AI reduces time-intensive tasks, enabling specialists to focus on high-value strategy and advisory work.
- Enhanced Risk Management: Predictive machine learning models can preempt regulatory or operational risks before they escalate.
- Innovation at Scale: AI is not merely incremental — it’s permitting new business models and reshaping traditional functions like accounting, legal review, and transaction analysis.
Enterprises that integrate AI into their corporate service stack will not only improve operational resilience but gain a decisive edge in markets defined by speed and complexity.
5. Workforce and Talent: A Strategic Imperative
While technology accelerates operational transformation, it also reshapes workforce dynamics. Amid global talent shortages in specialised domains such as AI, analytics, and compliance, companies are rethinking their human capital strategies — balancing automation with skilled expertise that can interpret and act on strategic insights.
In response:
- Organisations are investing in upskilling programs and hybrid talent models that integrate internal capabilities with external expertise.
- Outsourcing and strategic partnerships are increasingly valued for accessing niche technical skills without long-term overhead.
- Leaders are focusing on talent resilience — ensuring teams can adapt to rapid technological, regulatory, and market shifts.
In 2026, integrating human potential with technological tools will define workforce excellence for global businesses.
6. Sustainability and ESG: From Compliance to Core Strategy
Environmental, Social, and Governance (ESG) considerations continued climbing corporate agendas throughout 2025. Where once ESG was viewed as a compliance requirement, it now shapes investment decisions, operational models, and brand narratives. Around the world, regulators and investors demand more transparent reporting and substantive commitments to sustainable practices.
For Strategic Leaders
- ESG strategy must be embedded in corporate governance rather than treated as an ancillary function.
- Transparent disclosures, credible sustainability goals, and measurable impact will drive investor confidence and stakeholder trust.
Companies that integrate ESG into their long-term strategy will not only meet regulatory expectations but also strengthen market positioning in 2026 and beyond.
Looking Ahead — Strategic Priorities for 2026
As we step into 2026, the global business ecosystem will be shaped by strategic foresight, digital transformation, and an integrated approach to compliance, tax, and governance. The engine driving success will not be change itself — but the ability to respond to it with agility, intelligence, and expert execution.
Corporate leaders should prioritise:
- Digital first compliance frameworks powered by AI and automation.
- Strategic tax planning that aligns with evolving global standards.
- Adaptive M&A strategies that leverage data-led diligence and integrated risk assessment.
- Transformative workforce models that balance human expertise with technological augmentation.
At Encor, we partner with multinational organisations to navigate these complexities — turning regulatory challenges into opportunities and strategic insight into competitive advantage.