Goldman Sachs CEO Solomon predicts that the IPO market and dealmaking will both improve.

• David Solomon, CEO of Goldman Sachs, stated in an on-stage event on Wednesday that the prolonged IPO market should soon come to an end.
• "Solomon stated that the IPO market has been sluggish, but he predicted that it would soon pick up."
• The Trump administration presents both opportunities and uncertainties for businesses, according to Solomon.

David Solomon, CEO, states that the IPO drought, which has lasted for several years, may soon come to an end.

"Solomon stated in an interview with CEO Chuck Robbins at a summit hosted by a computer networking company in Silicon Valley on Wednesday that "it's going to pick up." He added that "it's been slow, it's been turned off.""

Solomon, who flew to California for the event following his bank's fourth-quarter results that surpassed analysts' estimates, stated that the capital markets are showing signs of revival before President-elect Trump's inauguration next week.

Since the end of 2021, the tech IPO market has been mostly inactive due to the decline in favor of tech stocks caused by high inflation and increasing interest rates. Mergers and acquisitions in technology have been challenging due to the strict regulations that limit the growth of the largest companies through dealmaking.

Solomon predicts that the mood is shifting and anticipates an increase in M&A activity as well as IPOs.

"Solomon stated, "Our optimism is constructive and always beneficial." He later remarked, "In general, I believe we operate in an enhanced business environment.""

Solomon stated on his company's earnings call that the election of Trump and the return of Republicans to power in Washington are already affecting the business world. He pointed out that there is a significant backlog from sponsors and an overall increased appetite for dealmaking due to an improved regulatory environment.

On the day when the S&P 500 experienced its largest gain since November, Solomon made his comments on the call at the Cisco event. This was due to a tame inflation report and the 6% increase in Goldman's stock on Wednesday.

Despite the stock market's impressive two-year performance and recent record-breaking S&P 500 and Nasdaq indexes, IPOs have not yet experienced a revival. In December, cloud software vendor made its Nasdaq debut, marking the first significant venture-backed IPO in the U.S. since April.

At the Cisco summit, Solomon stated that the values decreased after 2021 and people are gradually re-embracing those values.

Some companies, including chipmaker Cerebras and online lender Klarna, have expressed their readiness to go public but have faced delays due to regulatory reviews by the Treasury Department's Committee on Foreign Investment in the U.S. and the SEC, respectively.

Solomon, despite his optimism about the future, pointed out that there are structural reasons against going public. He noted that the number of public companies in the U.S. has decreased from 13,000 to 3,800 in 25 years. The disclosure requirements for being public have become more stringent, and there is now an abundance of private capital available "at scale."

"Being a public company isn't enjoyable," Solomon admitted. "Why would anyone want to be a public company?"

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