Goldman Sachs CEO David Solomon stated that 2025’s mergers and acquisitions and equity dealmaking may surpass 10-year averages.
“I think in 2025 we will certainly be at 10-year averages. We might even be ahead of the 10-year average,” David Solomon said in an interview at the Reuters NEXT conference in New York.
Since Donald Trump won the US presidential election, bankers have been more optimistic about deals. Many stated that it was too soon to predict what economic policies the incoming administration would implement, but some predicted that friendly regulators would be placed atop important government agencies, eliminating regulations that some people found burdensome.
“I am quite optimistic that this administration is going to run a very, very pro-growth agenda. The first 100 days, obviously, will give us some indication about the balance of whether it’s trade policies, immigration policies, energy policies, tax policies – how the combination of those things will come together,” David Solomon added.
Over the past year, Goldman Sachs has profited from a recovery in investment banking, solidifying its position as the leading global firm offering merger and acquisition advice.
Goldman Sachs advised Cheez-It manufacturer Kellanova, which agreed to be acquired by candy giant Mars in August for almost USD 36 billion, in one of the year’s largest transactions.
Denis Coleman, the chief financial officer, previously stated at Goldman Sachs’ financial services conference that he anticipates a surge in “strategic” business transactions in 2025, including significant mergers and acquisitions. Although private equity firm buyouts have been sluggish, bankers anticipate a surge in activity in the upcoming year.
In the meantime, Goldman Sachs keeps reducing the consumer business that David Solomon used to support.
The bank had to write down its assets and sell assets after its retail operations lost billions of dollars. Since then, Goldman Sachs has returned to its core competencies in trading and investment banking.
When asked if the bank could begin trading cryptocurrencies, David Solomon responded that rules would have to change for the bank to be able to do so.