Goldman Sachs CEO Sees More Company Deals Happening Soon

The boss of Goldman Sachs, David Solomon, thinks more companies will join together or buy others in the next few years. He says this is because of money matters for investment funds, changes in government rules, and the growth of AI technology. This could lead to many deals by 2026.
By Newsroom | Business, Finance |

David Solomon, the chief executive of Goldman Sachs, has outlined three key factors he believes will fuel a significant increase in mergers and acquisitions (M&A) activity. He suggests that a convergence of pressures on private equity firms, a shift in the regulatory landscape, and the broad impact of artificial intelligence are setting the stage for a robust period of corporate dealmaking, potentially through 2026.

Goldman's CEO lays out the 3 forces lining up to make this a breakout year for dealmaking - 1

Dealmaking Landscape Shifting

Recent reports indicate a notable rise in Goldman Sachs' profits, partly attributed to strong performance in stock trading and advisory services. This financial upturn coincides with Goldman Sachs CEO David Solomon's public statements about an anticipated "breakout year" for dealmaking. These assertions have been made at industry conferences and in reports following the company's financial results.

Goldman's CEO lays out the 3 forces lining up to make this a breakout year for dealmaking - 2

  • The timeframe for this projected increase in M&A activity is suggested to extend to 2026.

  • Key financial institutions, including Goldman Sachs, Morgan Stanley, JPMorgan Chase, and Citigroup, have reported positive earnings driven by trading and deal-related revenues.

  • Goldman Sachs has also been undertaking strategic shifts, such as divesting its consumer business, including the Apple Card, to focus on its core investment banking and trading operations.

Identified Drivers for Dealmaking Growth

### Pressure for Capital ReturnDavid Solomon has emphasized the growing imperative for private equity firms to return capital to their investors. This pressure, described as reaching a "breaking point," suggests that these firms are increasingly motivated to exit existing investments through sales or other strategic transactions, thereby fueling M&A.### Policy and Regulatory EnvironmentDiscussions have pointed to a "friendlier regulatory environment" as a catalyst for corporate appetite for deals. While specific policies are not detailed, this factor is seen as encouraging companies to engage in M&A. Furthermore, comments have suggested that policymakers in Washington may be inadvertently spurring acquisitive behavior.### The Influence of Artificial Intelligence (AI)Solomon has acknowledged the significant opportunities presented by AI, while also noting that this rapidly evolving sector will inevitably create "winners and losers." This suggests that AI advancements will drive both consolidation and new strategic partnerships as companies seek to leverage or acquire AI capabilities.

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Observed Financial Performance and Market Conditions

Goldman Sachs' recent financial reports highlight increases in profits, significantly driven by its trading and investment banking divisions. The firm's success in the second quarter of 2025 saw profits jump, with financial advisory revenues playing a crucial role. This uptick in M&A activity is also mirrored by competitors like Morgan Stanley, JPMorgan Chase, and Citigroup, who have also reported higher revenues from similar areas.

  • Despite earlier market hesitations, particularly following tariff announcements in 2025, the M&A environment has shown resilience.

  • Goldman Sachs reported a 22% increase in earnings compared to the previous year, surpassing analyst expectations.

  • The company's equity traders capitalized on market volatility and a broader stock market rally, driven in part by speculation surrounding the Federal Reserve's interest rate policies and the prospects of AI companies.

Expert Analysis and Outlook

The pronouncements from Goldman Sachs CEO David Solomon align with broader industry observations. The confluence of factors such as the need for private equity firms to liquidate assets, potential shifts in regulatory policy, and the transformative impact of AI technology, presents a compelling narrative for increased corporate activity.

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  • The timing of these observations is critical, with potential implications for financial markets and corporate strategy through the mid-2020s.

  • The resilience of dealmaking, even amidst periods of economic uncertainty and policy changes, underscores a fundamental drive within the corporate sector for strategic growth and asset repositioning.

Conclusion and Implications

David Solomon's articulation of three primary forces—private equity capital return pressures, policy influences, and AI's disruptive potential—provides a strategic framework for understanding the projected surge in M&A activity. This outlook suggests that companies and investors should anticipate a dynamic period of corporate transactions. The continued strength in trading and financial advisory services, as evidenced by Goldman Sachs's financial results, further supports the expectation of a more active dealmaking environment.

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Frequently Asked Questions

Q: What is the main reason for more company deals?
The CEO of Goldman Sachs says three things will cause this: private equity firms needing to return money, changes in rules, and new AI technology.
Q: When will these deals happen?
He thinks this will happen more until 2026.
Q: How is Goldman Sachs doing?
The company made more money recently, partly from helping with deals and trading stocks.
Q: What role does AI play?
AI is a big new area that will create new opportunities and challenges, making some companies want to buy others or work together.
Q: Are other banks seeing this too?
Yes, other big banks like Morgan Stanley and JPMorgan Chase also made more money from similar work.