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Author: Goldman Sachs
Source: Goldman Sachs Exchanges
Publication date: 11/24/2025
Summary reading time: 3 minutes
Executive Summary
Despite geopolitical uncertainties, higher tariffs, and slowing economic growth, M&A activity in 2025 is experiencing a remarkable upswing. Stephan Feldgoise, Head of Global M&A at Goldman Sachs, analyzes the driving forces and sustainability of this development. The current merger wave raises fundamental questions about economic resilience in a challenging macroeconomic environment.
Critical Guiding Questions
- To what extent could the current M&A wave lead to market concentrations that limit competition and change innovation dynamics in the long term?
- What balance between necessary consolidation and preservation of economic diversity should regulatory authorities aim for in an uncertain geopolitical environment?
- How can companies use strategic acquisitions to build resilience without overextending themselves or stifling important innovation potential?
Scenario Analysis: Future Perspectives
Short-term (1 year):
M&A activity is likely to gain further momentum through strategic acquisitions in key sectors such as technology and energy, as companies seek to strengthen their resilience against geopolitical tensions and supply chain risks.
Medium-term (5 years):
Regulatory responses to increasing market consolidation are likely to intensify, with heightened scrutiny particularly for cross-border acquisitions in strategic sectors. At the same time, new business models could emerge from the current wave of consolidation.
Long-term (10-20 years):
Today's M&A wave could lead to a new corporate landscape dominated by fewer but more resilient global corporations, while in parallel new specialized niche providers emerge to fill innovation gaps. Corporate valuation will increasingly incorporate factors such as geopolitical risk diversification.
Main Summary
a) Core Topic & Context
The Goldman Sachs podcast examines the phenomenon of rising M&A activity in 2025 against the backdrop of an otherwise challenging macroeconomic environment. The discussion between Stephan Feldgoise and Allison Nathan illuminates the seemingly contradictory development of economic uncertainty on one hand and high acquisition activity on the other.
b) Key Facts & Figures
- M&A activity is significantly increasing in 2025, despite geopolitical uncertainties
- Higher tariffs and slowing economic growth characterize the market environment
- The conversation with Stephan Feldgoise was recorded on November 20, 2025
- Goldman Sachs sees potential for continued acquisition activity [⚠️ To be verified]
c) Stakeholders & Affected Parties
- Investment banks and their M&A departments (especially Goldman Sachs)
- Companies on both buyer and seller sides
- Shareholders and investors
- Regulatory authorities and competition oversight
- Employees in companies affected by mergers
d) Opportunities & Risks
Opportunities:
- Strategic repositioning in uncertain markets
- Synergy effects for cost reduction in an inflationary environment
- Scaling advantages for technological innovations
Risks:
- Overvaluations due to aggressive acquisition policies
- Regulatory backlash with increasing market concentration
- Integration problems with cross-border acquisitions in geopolitically tense situations
e) Relevance for Action
Decision-makers should thoroughly understand the driving forces behind the current M&A wave to accurately assess their own strategic options. Particularly important is forward-looking regulatory analysis, as intensified competition law scrutiny can be expected with increasing consolidation. Economic uncertainty requires more careful due diligence and more flexible integration strategies than in more stable phases.
References
Primary source:
What's Driving the Surge in Deal-Making?
Verification status: ⚠️ Based on future date (2025), therefore to be considered as hypothetical content