Goldman Sachs lowers M&A forecast for 2025

Goldman Sachs has revised its forecast for mergers and acquisitions in 2025, expecting only a 7% increase instead of the previously anticipated 25%. This change is attributed to concerns over tariffs affecting economic growth and CEO confidence. Despite a 15% year-over-year rise in announced M&A activity, the overall volume remains in line with the 15-year average. The bank noted that trade tensions have led to a decline in U.S. equities, with the Dow dropping 3.1% last week. Goldman Sachs also indicated that the current economic climate may weaken the IPO market. The bank's chief strategist highlighted that optimism for a surge in capital market activity has decreased following the election.