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Goldman Sachs Exchanges

The outlook for global deal-making

Dec 18, 2024
Stephan Feldgoise, co-head of global mergers and acquisitions at Goldman Sachs, shares insights on the accelerating pace of deal-making, particularly in energy and healthcare. He discusses how moderating inflation and rate cuts could boost activity by 10% in 2025. Feldgoise also highlights the importance of long-term strategies amid varying regional interests and the role of generative AI in shaping private equity investments. Despite ongoing risks, there's a growing optimism for large transactions as geopolitical obstacles lessen.
22:06

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Podcast summary created with Snipd AI

Quick takeaways

  • The recent resurgence in global deal-making is primarily driven by declining interest rates and a strategic need for companies to redefine their market presence post-COVID-19.
  • The pursuit of scale in mergers and acquisitions is critical across industries, emphasizing companies' efforts to enhance market presence and resource efficiency through strategic acquisitions.

Deep dives

Current Trends in Dealmaking Activity

In the evolving deal-making landscape, various factors such as inflation, interest rate adjustments, and market volatility are influencing corporate strategies for mergers and acquisitions (M&A). As interest rates have begun to decline, there has been a resurgence in deal-making, particularly noted in 2024, which showed an approximate 10% increase in activity compared to 2023. This resurgence is attributed to strategic repositioning demands in the aftermath of COVID-19, with companies increasingly looking to redefine their market presence. However, regulatory hurdles and geopolitical uncertainties also temper optimistic expectations, creating a balanced outlook for future deal-making activities.

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