“Tax Cuts and Jobs Act adds new considerations for M&A transactions”

Posted on 01.22.18

“Tax Cuts and Jobs Act adds new considerations for M&A transactions”

Gary Wallace, Keiter Partner and Tax Leader, shared his insights on how the Tax Cuts and Jobs Act may affect future merger and acqusition transactions in the article, “Tax Cuts and Jobs Act adds new considerations for M&A transactions”, published by Virginia Business.


Excerpt:

After months of anticipation and countless negotiations, Congress finally passed the Tax Cuts and Jobs Act at the end of 2017. Hailed as the most significant change to the U.S. tax code in more than 30 years, Republicans hope that the new legislation will boost the economy by spurring job growth, driving wages higher and increasing corporate investment in the country. It is too soon to tell whether these goals will be met, but what we do know is that the legislation contains several provisions that will significantly impact deal flow in Virginia and across the United States. For those considering a merger or acquisition in 2018, it is important to note these tax provisions and adjust your strategies accordingly.

Among the most significant changes for deal flow are the changes to tax rates. Specifically, lowering the corporate tax rate to 21 percent. This has created significant buzz because for the first time in a long time, there is a large disparity between corporate and individual rates. Will this have an impact on the favorability of pass-through entities? 

Access the full article.


Questions on how the new tax laws may affect mergers and acquisitions? Contact your Keiter representative or 804.747.0000 | Email.

Additional Resources:

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

Posted by: Gary G. Wallace, CPA

Gary provides tax services to public and private entities and their owners in a variety of industry segments, including manufacturing, retail, real estate, and financial services.  Gary has significant knowledge and experience in individual taxation, business taxation, including C and S corporations and partnerships.  He advises clients on all aspects of tax matters, including tax accounting methods, multi-state tax matters, mergers and acquisitions, income tax accounting and representation with tax authorities. He is the leader of the Firm's Tax Practice and a leader in the Firm’s Manufacturing, Retail and Distribution industry team.

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