Goldman's Solomon on a Resurgent US Economy and Dealmaking Momentum

Goldman Sachs CEO David Solomon has sounded a bullish note on the U.S. economy, framing 2025 as a pivotal year for a resurgence in mergers and acquisitions (M&A). According to a Reuters report, Solomon attributes this optimism to a "more business-friendly regulatory environment" under the new Trump administration and a renewed sense of CEO confidence, which he describes as "animal spirits being unleashed." This sentiment is echoed by global business leaders, with nearly 60% of CEOs anticipating stronger economic growth in the coming year, according to the HealthValue Group report.

Strategic Sectors: Technology and Healthcare Lead the Charge

Goldman Sachs' 2025 M&A outlook identifies technology and healthcare as the twin engines of the cyclical recovery. In technology, the AI stack-spanning infrastructure, platforms, and applications-is driving consolidation. Hyperscalers like Microsoft and Meta are pouring capital into data centers and cloud infrastructure to fuel AI growth, while mid-sized firms are acquiring niche capabilities to stay competitive. For instance, Meta's $14.3 billion acquisition of Scale AI Inc. and Palo Alto Networks' $25 billion takeover of CyberArk Software Ltd. underscore the sector's strategic focus on AI security and scalability, according to Cryptopolitan.

In healthcare, the trend is shifting toward simplification and specialization. Spin-offs and capability-driven acquisitions are reshaping portfolios, as seen in 3M's $20 billion separation of its healthcare business. Meanwhile, AI integration is revolutionizing medical solutions. Stryker's acquisition of care.ai and MedTech Innovations' purchase of HealthTrack highlight the sector's pivot toward AI-assisted virtual care and data-driven analytics, according to a Bain report. Goldman Sachs' 2025 M&A Outlook shows healthcare M&A activity surged by 56% in the first half of 2025 compared to the same period in 2024, driven by private equity interest and demographic tailwinds-a trend also highlighted by the HealthValue Group report.

Cross-Border Momentum and Creative Exit Strategies

Cross-border M&A is gaining traction, particularly between the U.S. and Europe, as well as in Asia-Pacific markets like Japan and India. Favorable governance reforms and economic policies are attracting global investors. For example, Cardinal Health's $1.9 billion acquisition of Solaris Health, advised by Goldman Sachs, reflects the growing consolidation in healthcare services .

Sponsors are also adopting innovative exit strategies to optimize returns. Continuation funds and minority stake sales are becoming prevalent, allowing investors to monetize portions of their holdings while retaining long-term value. Activism is further accelerating this trend, with pressure on larger corporations to pursue spin-offs and simplifications, as noted in Cryptopolitan coverage.

Positioning for the M&A Surge

For investors, the key lies in aligning with sectors poised for structural transformation. Technology's AI-driven infrastructure and healthcare's digitization present durable growth opportunities. Solomon's emphasis on "strategic simplification" and macroeconomic stability suggests that companies with clear value propositions and scalable technologies will dominate the M&A landscape, a point also made in the Reuters piece.

Goldman Sachs, as a leading M&A advisor, is uniquely positioned to capitalize on this momentum. Its expertise in cross-border transactions and AI integration-such as deploying AI software engineers like Devin-further cements its role in shaping the next phase of dealmaking, as discussed at the Goldman tech summit.

As the U.S. economy gains traction, the interplay of regulatory clarity, technological innovation, and sector-specific dynamics is creating a fertile ground for strategic investors. Those who align with these trends may find themselves at the forefront of a transformative era in global capital markets.