Volume Will Be Real Marker of IPO Market: Sawyer

• IPO volume is considered the 'real marker' for a market comeback, with Wall Street expecting more IPOs in '26.
• Renewed IPO activity is an early indicator that private equity sponsors will gain confidence to exit portfolio companies and recycle capital into new M&A deals.
• Aging CEOs are looking to do 'transformational' deals, and a toning down of regulatory rhetoric, along with a willingness from US regulators to consider behavioral and divestment remedies, is restoring confidence.
• Technology is projected to lead global M&A deals in 2025, but regulatory differences between the US and other regions (e.g., Europe) pose a challenge for dealmakers.

Melissa Sawyer of Sullivan & Cromwell discusses the anticipated comeback of the IPO market, viewing increased volume as a key indicator for a broader M&A resurgence. She highlights that private equity sponsors are expected to exit portfolio companies and reinvest, driving M&A, and notes a thawing in US regulatory approaches, though global alignment remains a challenge.