Mergers and Aqusitions
We expect that tax cuts will encourage more owners to put their business on the market, now that the tax liability for selling your business has fallen. Lower than expected valuations are the biggest hurdle to getting deals done, but a sizable tax cut could bridge the gap between what a seller wants to net out of a sale and what a buyer is offering.
Much discussion has focused on how the bill will help companies with foreign investments repatriate dollars for domestic investments. We also know that tax cuts will allow corporations to keep more of their earnings, giving them cash to reinvest in human capital, equipment or acquisitions.