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Generational Equity Says Tax Reform Ensures Positive Outlook for Middle Market M&A

By Generational Equity

Jan 10, 2018, 04:00 et

Tax Reform

Experts are predicting an acceleration of merger and acquisition activity in 2018 thanks to the passage and implementation of the major tax reform legislation signed last year by President Trump.

A recent survey of business leaders indicates an increase in merger and acquisition transactions this year. Deloitte's "State of the Deal M&A Trends" report foresees an "increase of merger and acquisition activity in 2018 with 68 percent of corporations surveyed and 76 percent of private equity respondents anticipating an uptick in the number of transactions."

"Concerns about the size and scope of tax reform and the ability of the current administration to reduce the regulatory burden have been largely resolved," said Terry Johnson, Chief Revenue and Strategy Officer for Generational Equity, a leading middle market M&A advisory firm. "With reduced taxes, large strategic buyers will have more capital available to reinvest in their growth initiatives, including acquisitions."

Wells Fargo predicts that the repatriation tax holiday will be a huge driver of merger activities as companies forgo capital spending and share buybacks in favor of growth by acquisitions.

"It is our belief that tax reform will strengthen the current seller's market," says Johnson. "However, the window of opportunity for business owners to maximize their exit can close quickly based on geopolitical events, a slowdown in the economy, or other factors, all of which are largely out of our control."

"Seller's markets don't last forever," says Johnson. "With literally trillions of dollars coming into the market in terms of tax breaks and tax repatriation programs, it is prudent for business owners to recognize this and consider the opportunities in the marketplace now."

About Generational Equity

Generational EquityDealForce, and Generational Capital Markets, member FINRA/SIPC, are part of the Generational Group, which is headquartered in Dallas and is one of the leading M&A advisory firms in North America.

With over 250 professionals located throughout North America, the companies help business owners release the wealth of their business by providing merger, acquisition and strategic growth advisory services. Their four-step approach features exit planning education, business valuation, value enhancement strategies, and M&A transactional services.

The M&A Advisor named the company the 2016 and 2017 Investment Banking Firm of the Year. For more, visit or the Generational Equity press room.

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Carl Doerksen