Sellers favored in M&A deals due to tax reform

Being M&A-ready in the new tax landscape

Sellers are getting the edge in M&A deals, with activity driven up by tax reform’s favorable tax rates and other changes. Companies planning to act on potential opportunities must be M&A-ready. They need to implement a platform strategy that leverages digitization and focuses on long-term value creation.

Both sides benefit from the reduced tax rate. Sellers have the additional advantage of positive effects on cash flow and liquidity. Their M&A readiness includes flexibility in keeping or shedding assets. To prepare for acquisition, a seller can develop or strengthen a platform strategy that provides competitive value. A plug-and-play capability enables digital expansion as needed.

Whether selling or buying, engineer your business for take-off or add-on. There will unquestionably be an uptick in corporate divestitures and spinoffs, as well as industry consolidation. Be ready to confirm, protect and create business value.

For further details and recommendations, watch the video.

Sunil Taneja
Senior Manager, M&A Tax Services
T: +1 312 602 8118