Goldman Sachs Exchanges The outlook for global deal-making
23 snips
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.
AI Snips
Chapters
Transcript
Episode notes
2024 M&A Market Growth
- M&A activity saw a gradual 10% increase in 2024, driven by factors like lower interest rates and strategic repositioning.
- This growth is expected to continue at a similar pace in 2025, influenced by both positive and negative factors.
Interest Rate Adjustment
- While the Fed's rate cuts have improved the environment, current rates are still adjusting to a new normal after a period of low cost of capital.
- This adjustment period influences valuations and requires companies to adapt their expectations.
Long-Term M&A Strategy
- Companies make M&A decisions based on long-term strategic goals, often spanning decades, not just short-term policy changes.
- While geopolitical and regulatory factors can impact deal timing, they have less influence on overall strategic M&A activity.