NEW YORK, May 28 (Reuters) – Goldman Sachs’ expects merger and acquisition volumes for the industry this year are on course to approach a 2021 record, with corporate activity driving dealmaking, its president John Waldron said on Thursday.
“We’re on track to be near the record, if not breaching the record of 2021. Our backlogs feel good. Activity is remaining strong,” Waldron told a financial conference in New York.
“Interestingly, it’s really a corporate-led market.”
Goldman, the world’s top merger and acquisition adviser for over two decades, has benefited from strong global dealmaking, which recently rebounded after a sharp slump in the weeks after the start of the Iran war.
It has worked on several large transactions, including advising Unilever on the planned merger of its food business with McCormick to create a $65 billion company.
Turbulence linked to the war in Iran and swings in valuations have yet to deter corporate dealmaking as transactions in the first quarter exceeded $1.2 trillion, LSEG data shows, and dealmakers say much more is in the pipeline.
The overall value of M&A stood at a record $5.8 trillion in 2021.
Waldron said the bank is constructive about the market for initial public offerings, adding the likelihood of success of some mega IPOs could usher in more deals.
“We tend to see an enormous amount of liquidity and capital in the world that wants to allocate into growth into this theme, particularly when you get into some pretty exceptional companies,” he said, without naming the firms.
Goldman Sachs secured the much-coveted lead left position in Elon Musk’s rocket and satellite maker SpaceX’s initial public offering.
(Reporting by Saeed Azhar and Arasu Kannagi Basil; Editing by Gus Trompiz)
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