By: Scott Sanchon, Trade Treasury Payments 

The M&A market is moving. The question is whether the treasury is ready for them. 

From the Bank of America’s “Why treasury matters in M&A” virtual briefing on 11 May 11 2026, global M&A is up around 50%, driven largely by corporates rather than private equity sponsors. Despite geopolitical tensions, portfolio companies that have been in funds for years are starting to take action, especially in Europe, where the market is showing a clear push towards regional consolidation, building domestic markets to compete with US and Asian rivals. 

In the virtual briefing, Matthew Davies, head of GPS EMEA and Global co-head of Corporate Sales, GPS, and Geoff Iles, co-head of EMEA M&A, discussed market changes in M&A deal volume and how treasury can support this implementation. 

The treasury gap 

In most M&A transactions, treasury is often overlooked. The deal team genuinely focuses on valuation and structure. Treasury, on the other hand, will be evaluated at the end of the process.

“There is a huge amount of value that is driven from treasury activities, and, in reverse, when it’s not there, that value is simply lost,” said one of the session’s speakers.

When treasury gets involved early, it can shape how cash flows are managed throughout the M&A process, for example, by flagging regulatory and tax issues before they become a major problem. This initiative also helps make decisions with the right input and reduces potential losses from hidden costs.  

A four-stage framework

M&A role generally follows four stages: preparation, due diligence, execution, and integration.

Preparation is the foundation from which M&A get prepared from day one. This includes mapping bank accounts, understanding the financial structure, and managing banking relationship structures. Due diligence means establishing the right processes to help businesses avoid potential risks and handle deal closings. Execution is the process of ensuring the integration plan is delivered. Integration is the end-of-line process in which the treasury can drive measurable value through seamless finance asset management. 

Furthermore, incorporating treasury to deliver the most positive outcome requires ensuring treasury management is implemented under three umbrellas: governance, technology, and cost savings. 

In this context, governance is defined as the way banking activities are managed, and risks, including foreign exchange, interest rate, and credit exposure, are evaluated and planned for.

Technology is another aspect that comes into play. Treasury management in the M&A process typically means ensuring seamless integration between treasury management processes and ERP systems. 

Cost savings ultimately come from better cash flow forecasting and from avoiding inefficiencies before, during, and after M&A processes.

“When it’s done well, it has a significant impact on overall outcomes; when it’s not done so well, some value is missed, some opportunity is lost,” the participants said. 

Complex financing landscape

While incorporating treasury management at an early stage seems to be an optimal pathway for banks and businesses, the briefing also touched on how the financing deals have changed.

Corporations now have access to a wider range of options beyond traditional debt and equity. Private capital is entering transactions directly, creating structures that require high-level due diligence and long-term strategy on balance sheets.

“The Treasury can no longer sit outside this conversation.”

Bringing the treasury on board early has to be part of strategic financing decisions during M&A preparation. This will help capital structure work efficiently across entities and jurisdictions over time. 

Geography matters more than people think.

Cross-border deals bring an added layer of complexity for M&A and treasury management. Cash can be spread across multiple countries, and without full visibility, it is critical to decide which companies have it and what can be deployed.

“You’ve got your own cash position, but you might not be aware of how much cash is sitting in each jurisdiction; that’s where you can get some nasty surprises,” said one speaker. 

Building a clear picture early on can come in handy. This is one of the most practical things that treasury teams can help navigate. Building a clear plan to consolidate and migrate bank accounts into a unified structure. This area is where first-time acquirers tend to struggle most. 

A turning point

The Bank of America briefing reflected the importance of treasury in M&A processes. Treasury is no longer a support function. It is now a key mechanism for improving outcomes at every stage of the deal. It is a strategic asset management that spans across cash management, risk management, financing, and integration. 

As M&A activity has shown a dramatic increase this year, organisations that engage early with treasury are the ones that set themselves up for success from the start.

This article is based on a background briefing hosted by Bank of America on 11 May 2026.