Good morning from OWITH.ai, the podcast that gives you only what's important to hear in the AI and tech world.The year 2026 presents a cautiously optimistic outlook for Initial Public Offerings (IPOs) and mergers and acquisitions (M&A), while secondary markets are expected to experience significant growth. In 2025, notable public offerings by major companies like Circle, alongside high-profile acquisitions such as Google’s $32 billion purchase of Wiz, were observed. However, overall IPO activity remained below historical levels. As 2026 unfolds, the conditions affecting private market exits remain consistent, with private companies maintaining high valuations but possessing more liquidity options without needing to enter public markets. This benefits top-tier private companies, whereas others, including promising AI startups, find acquihires more appealing than independent operation.Continuing from the previous year's momentum, IPOs in early 2026 are expected to flourish due to strong public equities and a backlog of tech companies ready to go public. Nevertheless, this trend may slow by mid-year. Notably, the IPO market is anticipated to feature more high-end companies going public as valuations improve. However, smaller issuers will continue to face challenges until significant reforms make the process more efficient.In the realm of M&A activities, robust performance is forecasted. A significant acquisition exceeding $50 billion in the AI software sector could reshape the market, driven by a favorable regulatory environment and increased financing capacity of incumbents. Fintech is predicted to undergo consolidation with companies achieving strong product-market fit likely leading acquisitions. Moreover, big pharma is expected to make substantial acquisitions of venture-backed biotech firms focusing on oncology and metabolic diseases.Simultaneously, secondary markets are anticipated to surge as startups remain private longer and traditional IPOs become less frequent. This trend is expected to set a new transaction volume high in 2026 following record levels in 2025, fueled by increased demand for liquidity solutions through various private-market mechanisms.Despite a solidly growing economy and elevated inflation rates, significant rate cuts by the Federal Reserve appear unlikely in the near term. Interest rates may remain higher than anticipated unless inflation decreases sharply or employment weakens unexpectedly.In summary, while IPOs and M&A activities exhibit cautious optimism for 2026 with potential market shifts in fintech and biotech sectors, secondary markets are poised for substantial growth due to changing dynamics in private market liquidity and investment strategies.The latest edition of CEO Daily on January 6, 2026, highlights several significant developments across global markets and industries. Among these is the transformation of General Electric (GE) under Larry Culp’s leadership since late 2018. Culp divided GE into three Fortune 500 public companies: GE Healthcare Technologies, GE Vernova, and GE Aerospace. Since its NASDAQ debut on January 4, 2023, GE Healthcare's stock has risen nearly 50%. GE Vernova's shares have surged by 400% since April 2024 due to AI-powered electricity demand, while GE Aerospace has more than doubled its value.Peter J. Arduini, CEO of GE Healthcare, strives to revitalize some of GE's original strengths while charting a new course for the $20 billion-a-year medical technology company. Having previously worked at GE under Jack Welch and Jeff Immelt, Arduini was drawn back by Culp and seeks to restore former practices such as performance reviews and leadership development.In geopolitical new
Support the show
Thanks for listening! Follow us on Twitter, Instagram and Linkedin