The Impact of Tax Reform on M&A Transactions
Buyers and sellers have always taken taxes and tax law into account when evaluating a potential transaction. Sellers want to make sure that the proceeds they receive, net of their tax liability, are appropriate for what they think the company is worth. Similarly, buyers want to make sure the economic return they make, after paying taxes, will justify their purchase price. In light of the impending expiration of certain provisions in the Tax Cuts and Jobs Act (TCJA) by 2025, our associates at Redpath and Company present an insightful article emphasizing the heightened need for strategic structuring in M&A deals.