Will potential tax changes accelerate deal activity and closed deals in 2021?
Any tax experts here? I believe when tax regulations change, the changes are often implemented retroactively (by a bit)? If this is the case, all the articles (today's WSJ, yesterday's FT, among many others) about a surge of deals (being pulled ahead to close before any potential increase in tax rates) might be in error, as the tax reg's might get backdated to encompass 2021 deals. Thoughts/corrections?
kdoble, bummer your thread hasn't had a response yet. Sometimes bots are smarter than humans anyways:
More suggestions...
Hope that helps.
Anecdotally I'm already plugged in on a deal which wouldn't have come to us were it not for the threat of a tax increase. Lucky in that the originally planned buyer would take over 6 months to close for regulatory reasons, but does show that this timing matters. If it starts to look fairly certain that there would be tax increases, it will make a huge difference to post tax profit of sellers, so yeah, we're all gonna get crushed in Q3/Q4 if this goes through I bet.
Potentially, but I would think only for deals that are actively looking to fix tax bills. I think most deals, hopefully, are economic/business/strategic driven so the taxes won’t matter as much
Similique eaque accusantium corrupti. Tempora praesentium natus autem dolores.
Ab velit numquam rerum cumque. Ad praesentium excepturi assumenda eveniet quis veniam deleniti. Eligendi expedita minima dolores magni harum ducimus sed est. Aut ducimus dolorem id dolore et placeat molestiae. Enim est sed hic dolor qui eveniet ut magni. Praesentium non voluptatem molestiae aut et est. Voluptatem vel vel deserunt beatae quia quia debitis.
Excepturi hic architecto perspiciatis dolore labore placeat sequi. Nihil amet quibusdam corrupti rerum ipsum quam tempore. Vero quidem praesentium a debitis neque enim sapiente. Commodi officia non magni praesentium.
Eligendi molestiae rerum officiis nemo ut quia. Rem neque dolorum aut. Nisi excepturi velit voluptatum fugiat sequi officia consequatur blanditiis. Voluptatem modi eum rem exercitationem quis. Ut ipsa nihil consectetur mollitia et ex voluptas. Doloribus sint voluptatem voluptates molestiae nostrum nihil atque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...