Companies are gearing up for a wave of deals in 2017. With the Trump administration taking shape, there are three things that should have a positive impact on the M&A market.
“First of all, the lessening of regulations,” Bill Casey, EY Americas vice chair of transaction advisory services, told Yahoo Finance in the video above. “Clearly, that’s going to have a positive impact to the market.”
“Also, reduced tax rates,” Casey added. “Clearly, if the US tax rates are reduced from where they’re at now that’s going to put more capital back into the market.”
“Then lastly, if there is a reduction in the amount of taxes on the repatriation of earnings they’ll just put more money in some of the ideas they’ve talked about, such as incentives to invest in infrastructure, which will have a very positive impact on engineering firms, heavy equipment manufacturers. So all these things together should have a very, very positive impact from an M&A perspective.”
In the US, Casey expects that the energy, life sciences, and pharmaceutical sectors will see more deal activity.
He also expects that there will be an increase in the number of smaller deals in 2017. These sorts of deals will be focused on technology and innovation to avoid disruption.
Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.
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