We could see fewer transformative acquisitions if President-elect Barack Obama moves forward with the economic agenda he touted on the campaign trail,
Jeffery Bistrong, a managing director with the middle-market M&A advisory firm Harris Williams & Co., tells The Deal's Suzanne Stevens in this episode of Inside The Deal. See the video after the break.
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Bistrong states that by closing tax loopholes, increasing taxes on the
corporate and income side, and implementing more stringent antitrust
regulation and protectionist measures could keep buyers from pursuing
high-dollar targets. Instead, he expects corporate acquirers to focus
on smaller, digestible, middle-market-sized deals. Bistrong also
predicts that the tax policies, particularly in terms of capital gains,
of an Obama administration will have a marginally negative affect on
private equity dealflow.
