Distressed M&A on the Horizon? Exploring Key Tax Considerations Impacting Dealmaking
At the start of 2022, dealmaking was coming off the best year on record for global M&A, fueled by pent-up demand, high levels of liquidity and an explosion of de-SPAC activity. The stock market rose to new heights and there was plenty of debt financing available. Headwinds started to kick in and are now growing even stronger with rising inflation and interest rates, lower stock prices and geo-political issues fueling a potential energy crisis.
Are we headed toward a downturn? Will the market start to see an increase in distressed M&A? While distressed transactions come with greater risks than “healthy” acquisitions, the benefits of lower costs and legal protections for the buyer could outweigh the risk. In addition, the current market conditions, and the impact Covid-19 has had on the global economy have added complexities to distressed deals.
Investors and strategics must understand the tax structure considerations associated with distressed transactions as well as the hidden opportunities and traps related to tax impacts on private equity and mergers & acquisitions. If we are headed toward a downturn, how will tax structures impact restructurings, distressed acquisitions, loan workouts, financing options and issues with debt?
On December 8th at 1:00pm Eastern, The Deal along with global law firm Pillsbury Winthrop Shaw Pittman LLP hosted a roundtable of leading M&A dealmakers exploring the latest tax considerations impacting the market.
Panel Includes:
- MODERATOR: Nora E. Burke, Partner, Pillsbury
- Burke Dempsey, Executive Vice President, Head of Investment Banking, Wedbush Securities Inc.
- Jay Goffman, Client Chairman, Financial Advisory, Teneo
- Kathleen Lauster, Managing Director, Group Leader, Fairfield Capital Advisors
- Brett R. Willis, Partner, Pillsbury