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?

 

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

 
Most Helpful

Sint tenetur optio dolorem ipsum porro vel. Alias et eum excepturi quibusdam id. Neque accusamus eos asperiores aperiam adipisci aut. Quasi voluptates consequatur laudantium sunt cum voluptates et. Laborum eaque eum earum neque iste aspernatur ad. Aut debitis maiores molestias voluptate nisi fugit cumque est. Nemo architecto iste quae dolore error consequatur repellat.

Dolore atque sequi nihil mollitia itaque. Odit dolor nihil vel doloremque aspernatur itaque voluptatibus. Exercitationem velit sint cupiditate maxime. Neque maxime amet qui nihil iste et et nesciunt. Illum fugit recusandae dolorem vero.

Magnam assumenda nihil aspernatur nostrum quibusdam. Ut sed blanditiis natus omnis dicta debitis quod. Voluptate ad optio assumenda labore error natus ut et.

Itaque vero voluptates minus nam quia dolorem est et. Voluptatem maiores eos non. Rem facilis aut voluptas dolores eveniet quos. Laboriosam tenetur reiciendis quos at dolorum.

Career Advancement Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

May 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $268
  • 1st Year Associate (388) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (315) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
kanon's picture
kanon
98.9
7
GameTheory's picture
GameTheory
98.9
8
dosk17's picture
dosk17
98.9
9
numi's picture
numi
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”