Generational Equity Says Tax Reform Ensures Positive Outlook for Middle Market M&A
By Generational Equity
01/10/2018
Experts are predicting an acceleration of merger and acquisition activity in 2018 thanks to the passage and implementation of the major tax reform legislation signed last year by President Trump.
A recent survey of business leaders indicates an increase in merger and acquisition transactions this year. Deloitte's "State of the Deal M&A Trends" report foresees an "increase of merger and acquisition activity in 2018 with 68 percent of corporations surveyed and 76 percent of private equity respondents anticipating an uptick in the number of transactions."
"Concerns about the size and scope of tax reform and the ability of the current administration to reduce the regulatory burden have been largely resolved," said Terry Johnson, Chief Revenue and Strategy Officer for Generational Equity, a leading middle market M&A advisory firm. "With reduced taxes, large strategic buyers will have more capital available to reinvest in their growth initiatives, including acquisitions."
Wells Fargo predicts that the repatriation tax holiday will be a huge driver of merger activities as companies forgo capital spending and share buybacks in favor of growth by acquisitions.
"It is our belief that tax reform will strengthen the current seller's market," says Johnson. "However, the window of opportunity for business owners to maximize their exit can close quickly based on geopolitical events, a slowdown in the economy, or other factors, all of which are largely out of our control."
"Seller's markets don't last forever," says Johnson. "With literally trillions of dollars coming into the market in terms of tax breaks and tax repatriation programs, it is prudent for business owners to recognize this and consider the opportunities in the marketplace now."
About Generational Equity
Generational Equity, DealForce, and Generational Capital Markets, member FINRA/SIPC, are part of the Generational Group, which is headquartered in Dallas and is one of the leading M&A advisory firms in North America.
With over 250 professionals located throughout North America, the companies help business owners release the wealth of their business by providing merger, acquisition and strategic growth advisory services. Their four-step approach features exit planning education, business valuation, value enhancement strategies, and M&A transactional services.
The M&A Advisor named the company the 2016 and 2017 Investment Banking Firm of the Year. For more, visit https://www.genequityco.com/ or the Generational Equity press room.
For more information:
Carl Doerksen
972-232-1125
cdoerksen@generational.com
About Generational
Generational Group, headquartered in Dallas, is a leading, award winning, full-service M&A advisory firm. With more than 350 professionals located throughout 16 offices in North America, the company helps business owners release their business’ wealth by providing growth consulting, merger, acquisition, and wealth management services. The Generational suite of advisory services includes strategic growth consulting, exit planning education, business valuation, value enhancement strategies, M&A services, digital services, and wealth management.
The M&A Advisor named Generational Group Investment Banking Firm of the Year in 2016, 2017, 2018, 2022 & 2024. They also awarded us Valuation Firm of the Year and M&A Consulting Firm of the Year in 2022 and 2023. For more information, visit: https://www.generational.com.