Month: July 2020
24 Jul 2020
Potential Capital Gains Tax Changes Impacts Proceeds from M&A Transactions
Every election year carries with it the potential for structural change—and with the ongoing economic crisis from the pandemic, there is a growing sense that this year may be ripe for bigger changes than normal. One direct impact that owner-operators may feel is a higher tax burden—particularly if the Democratic Party controls both the...
23 Jul 2020
Valuation Impact: Proposed Post-Election Tax Changes
If the tax structure is changed to match the Democratic Party’s campaign promises, achieving similar after-tax proceeds will require higher transaction multiples–for example, to get the same after-tax transaction proceeds for a California-based business in 2020 at 7.00x EBITDA, business owners would need to sell the same business for 10.2x EBITDA.