Insights & Info

Insights > 2017 Tax Reform Legislation’s Impact on M&A Activity

2017 Tax Reform Legislation’s Impact on M&A Activity

By Generational Equity

US Congress

The tax reform bill recently passed by the U.S. Congress is one of many factors that indicate 2018 will be an ideal time to explore selling a business.

“There are a number of items in this tax reform legislation that should enhance the M&A environment,” according to Terry Johnson, Chief Revenue and Strategy Officer for Generational Equity. They include:

  • Companies repatriating profits now held overseas are expected to use some of those funds to spur growth through acquisitions.
  • Lower corporate tax rates will provide increased capital for acquisitions. In addition, interest rates are still near historic lows, providing cost-effective financing to help close transactions.
  • Acquisitions remain an important vehicle to achieve growth expectations for shareholders.

“Preliminary indications are that this legislation, coupled with a number of key elements, such as historically low interest rates, will make 2018 an excellent time for business owners to move forward with exit plans,” says Johnson. “Hiring a professional M&A advisory firm is a prudent first step to optimizing an exit successfully.”

“A big key is that the uncertainty surrounding this legislation has been lifted, freeing up buyers and sellers to proceed,” says Brenen Hofstadter, Generational Equity’s Chief M&A Officer. “For example, I had received several offers for a large client in August, but the owners have been on the sidelines awaiting the outcome of the tax bill. Having clarity on the legislation will now enable them to make an informed decision.”

Johnson added, “We are currently in one of the strongest M&A markets in years and sadly, far too many business owners will potentially miss this great opportunity to exit their businesses at maximum value. Our goal is to help our clients and their families achieve their financial dreams by taking advantage of these current favorable market conditions.”

Start Exit Planning with Generational Equity

What is your reaction to the passing of the tax reform bill? Many factors are aligning to make 2018 an ideal year to press on with your exit plans. At Generational Equity, our experienced team put the needs of our clients first, ensuring an award-winning service that is recognized throughout the industry.

If the tax reform bill has left you contemplating your exit strategy, consider attending an executive conference from our M&A professionals. Completely complimentary, these conferences open a window into M&A activity, including how market influences like the tax reform bill, should impact the timing of selling a business.

Contact Generational Equity today to learn more about executive conferences near you and how you can attend. Remember: how you exit your company is often down to timing. Don’t miss your opportunity to maximize your business’ valuation.

I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
We were happy to see the interest in our company and what we cherished has not just a valuable company but an important company to the communities we served in.
Larry Moore, Owner, A Company Portable Restrooms
We are extremely pleased with the way Generational Equity handled the sale of our company. Your associates, Tom and Chris, did an outstanding job of getting us (me) through the process.
Michael J Polarek, President, Paragon Packaging
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
We will highly recommend Generational Equity and Musa Jagne to any business owner about to embark on the same process.
Karen S. Williams, CFO, BW Manufacturing
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
We thank you Eric and Generational Equity making our dream come true.
Larry Moore, Owner, A Company Portable Restrooms
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
The help you provided us during each step of this process made us feel very comfortable and confident we were selecting the right approach to transition our Company.
Andy Graham, Vice President, Modern Heating & Plumbing
I must say that I have never worked with a more driven, competent and focused individual as Don Ho.
Jay Dinnison, Owner of Sharpe Mixers
Generational Equity educated and informed us – so that we could be on the upside of a good decision (to sell).
Bil MacLeslie, CEO, ipHouse
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
Thanks again Phil and feel free to have a future client call me if they would like a referral. You are a true professional!
Andy Graham, Vice President, Modern Heating & Plumbing
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Terry D. Wickman, President, Keytroller
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
I quickly recognized that Don was working for Sharpe Mixers above all else, and held our interests above others.
Jay Dinnison, Owner of Sharpe Mixers
Michael worked tirelessly, He followed every lead meticulously and urgently to make sure nothing was missed.
Robert Evans, President and CEO of Mealtracker Dietary Software
Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.