I am a quant and I have been intrigued by Trump asking for the Govt to make a "finders fee" on the MS TikTok deal. Obviously, to me it seems unprecedented, and I was wondering if the Govt will make some money regardless - and how much.
I understand that investment banks typically charge an upfront fee for the deal and a success fee. There are obviously other integration costs for the buyer including legal fees.
However, what I am interested in is whether the government charges any sort of tax on these transactions (lets say $1B+ deals) and/or SEC fees if the buyer was buying a public company (probably more obvious).
Thanks!
Bump
Directly no, indirectly yes. Think of an acquisition as trading a share of stock in a business. The government doesn’t directly take a cut from the transaction but takes a cut through capital gains, taxes on income to the broker etc.
Okay cool - that's what I thought. A part of me believed something more direct happens as I couldn't really see a typically m&a invoice that gets sent to the buyer.
Trump is talking out of his ass per usual.
Government may get a cut via taxes but it it's not going to get a direct fee.
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