Much has been written recently about the new tax code and impact it could have on M&A. I have read over a dozen articles that all start the same way:
- Corporate tax rate is declining from 35% to 21%
- Corporate alternative minimum tax is repealed
- One-time repatriation at a lower tax rate will be permitted
- Immediate depreciation of new and used assets
All of these components of the legislation are designed to do one thing: increase cash available to corporations.