Goldman Sachs expects "strategic" deals by companies to accelerate in 2025 including large-scale mergers and acquisitions, its finance chief said on Tuesday.
Goldman Sachs anticipates an increase in larger-scale strategic deals in 2025, following a year where dealmaking was subdued due to high interest rates and economic uncertainty. According to a report released on December 10, 2024, the investment bank expects that as economic conditions stabilize and interest rates potentially decrease, there will be a surge in mergers and acquisitions (M&A) activity. The report highlights that companies are currently under pressure to adapt to rapid technological changes, geopolitical shifts, and evolving consumer behaviors, which will drive strategic consolidations. Furthermore, sectors like technology, healthcare, and renewable energy are poised for significant M&A activity as firms seek to gain scale, access new markets, and enhance technological capabilities.