Goldman Sachs Head Predicts M&A ‘Pick-up’ in 2025

Goldman Sachs Chairman David Solomon has reportedly predicted stronger capital raising under the next Trump administration.

Solomon also said Tuesday (Nov. 19) that there will be a more robust merger and acquisition (M&A) environment under the new president.

“Given where we are at the moment, … you’re starting to unleash some of those animal spirits, and you’re seeing a pick-up in equity activity, pick-up in M&A activity,” said Solomon, whose comments during the Hong Kong Monetary Authority’s Global Financial Leaders Investment Summit were reported by Reuters.

As noted here in September, this year, M&A activity in the U.S. has trailed other regions for much of the year. As of the end of that month, M&A volume in America was down 8%, but up 7% in Europe and 54% in the Asia-Pacific region.

Solomon’s predictions are in line with the way a number of industries have responded to Trump’s recapture of the White House earlier this month, as the Republican businessman is thought to be, well, good for business.

In the days after the election, banks and credit card issuers saw their share prices climb, as investors banked on the idea that spending will increase and defaults will drop under an improved economy.

Analysts also expect the new administration to be more likely than that of President Biden to OK Capital One’s plan to acquire Discover, or to alter — or simply jettison — the Consumer Financial Protection Bureau (CFPB) rule that would lower credit card late fees to $8.

Experts also predict that Trump will roll back other Biden policies, such as the Justice Department’s efforts to break up Google, as well as merger review guidelines that were instituted in 2023 and policies implemented by Federal Trade Commission (FTC) Chair Lina Khan aimed at addressing perceived harm from corporate consolidation.

The election has also seen bitcoin prices reach record highs on investor optimism that the Trump administration will mean a friendlier regulatory environment than the one offered by Biden, or what would have been offered under a President Harris.

Meanwhile, however, Walmart’s CFO said Tuesday that his company would likely have to increase prices on some products if Trump’s proposed tariffs become a reality.

“We never want to raise prices,” John David Rainey told CNBC. “Our model is everyday low prices. But there probably will be cases where prices will go up for consumers.”

Rainey said it is too early to determine which items would cost more under the tariffs.