By Bob Nihen
More than 60 percent of top tax and finance executives recently surveyed by KPMG say sweeping U.S. tax reform has affected the deal market and dealmakers. Survey results indicate that while the Tax Cuts and Jobs Act of 2017 (TCJA) is having a positive impact on deal flows (74 percent), it is also making mergers, acquisitions, divestitures and other transactions more complex, uncertain and riskier for many companies.
“Survey respondents are telling us that U.S. tax reform is clearly having a significant impact on buyers, sellers, investors and lenders involved in the deal market,” says Howard Steinberg, national leader for KPMG LLP’s Mergers & Acquisitions Tax practice. “We believe that there are some key steps corporate dealmakers can take to improve the odds of success, including focusing more from the very beginning on the tax implications of potential transactions.”
KPMG’s M&A outlook survey polled more than 100 top tax and finance executives at large and small companies across 18 industries. Key findings include:
74% of survey respondents say the TCJA has helped, rather than inhibited, the deal market.
For more information, or to arrange an interview with Howard Steinberg, please contact Bob Nihen.
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