Government's cut in US M&A
Hey peeps,
In light of Trump's recent demand for a cut of the TikTok deal (https://www.ft.com/content/a1162b60-977d-400c-9758-edc4aa006f72), I keep wondering if the idea is valid. Disclaimer, I'm not in the financial industry, just a keen student of the field. Keeping any polarity due to Trump aside, could anyone help me understand the following:
- What does the government contribute to M&A deals?
- What is the conventional cut (% of deal size) of the government? What does it normally consist of (I'm thinking transaction taxes, etc)?
- Has there been a demand for a significant cut like Trump's before? If yes, how was that justified? (I'm thinking additional security & review overhead, etc)
- What's the impact on the industry & the economy in the long term? (I'm thinking bad as increased transaction cost deter M&A)
- What do you, industry professionals, feel about this demand?
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