Second Half 2022 M&A Outlook Drivers: Tax changes, Inflation, Economy, Interest Rates, plus industry sector analysis

Posted by Matthew Bristow in Mergers & Acquisitions
Business owners may be contemplating selling in any given year but are often motivated by a trigger event to take action and sell. As discussed in our industry sector outlook research, many business owners are feeling now may be a good time to sell. The pipeline continues to be strong for new businesses coming to market. Analysts expect 2023 to …

2022 M&A Outlook Drivers: Tax changes, Interest Rates, Recession Warnings plus industry sector analysis

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
M&A transaction activity increased throughout 2021 and continues in 2022. Many private company owners are now working to close a transaction before year-end 2022 and avoid the uncertainty of a new economic, inflationary and tax environment in 2023.  There are three key reasons business owners are …
2022 M&A Outlook

M&A transaction activity is booming. With President Biden’s $1.75 trillion Build Back Better plan, what’s the outlook for 2022?

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
Merger Acquisition transaction activity has been increasing throughout 2021. Many business owners have been working to close a transaction before year-end and avoid the uncertainty of a new tax environment in 2022. President Biden’s $1.75 trillion Build Back Better (BBB) Act may soon become law, bringing tax reforms with it, but many of the plan’s initial tax proposals were …
M&A Outlook 2022

How will capital gains tax increases in 2022 impact M&A this year?

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
Business acquisitions accelerate in response to President Biden’s plan to double the long-term capital gains tax rate for those at the top, from 20% to 40%. When you include the 3.8% net investment income tax (NIIT) and some state income taxes, you could be looking at a 48% all-in capital gains tax rate by January 1, 2022. In this report, we discuss the biggest drivers of accelerated business sale activity, as well as analyze the outlook for eight industry sectors.

How does Biden’s $2 Trillion Infrastructure Plan Impact Mergers & Acquisitions in 2021?

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
We expect to see a list of proposed tax increases for businesses and business owners under the new Administration, possibly reversing 2017 tax cuts. The first tax increases are expected to roll out in 2022, but there’s a possibility a capital gains tax increase for the wealthiest Americans could take effect even sooner. Biden has also proposed closing the current …

Mergers & Acquisitions Rebound after COVID and the Election – 2021 ClearRidge Outlook

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
The short story is good news. A rebound is expected in mergers and acquisitions in 2021, gaining momentum throughout the year. Top of mind in Spring is the COVID-19 recovery, vaccine rollout and return to a new normal. Second, we have the implications of a new political climate. Without bias to any political party, a divided congress may be the best …
Mergers Acquisitions 2021

Mergers & Acquisitions Outlook and COVID-19 Update

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
Deal data is now available through the end of the second quarter 2020. In this report, we review our region’s most active industry sectors and offer an outlook for Fall 2020. We now have data to back up our initial insights into the COVID-19 impact on the U.S. economy, specific industry sectors and the outlook for M&A.  As forecast in ...

Surprises to selling a company in COVID-19

We had several acquisitions working in March when everything shut down and were not expecting to initiate any new engagements until late summer. However, we did start discussions on a new acquisition at the end of May. Surprisingly to us, the response was overwhelmingly positive and, as of last week, we have nine bona fide offers to acquire this company, five of which are at or above pre-COVID market value. How could this be?

M&A Outlook 2020 and COVID-19 Update

Posted by Matthew Bristow in Corporate Finance, Mergers & Acquisitions
In the current COVID-19 climate, we are replacing our analysis of M&A data in the most recent quarter (January-March) with an outlook for M&A activity through the remainder of 2020. The first quarter of 2020 seems a long time ago and has minimal influence on the current M&A environment. Conversely, we now have initial insights into the COVID-19 impact on the U.S. economy, specific industry sectors and the outlook for M&A.
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