"The November 2010 election likely will result in a more business-friendly Congress. This development would seem to provide some hope for improved middle market M&A conditions.Extension of the Bush tax cuts, and other more business friendly initiatives and incentives would bode well for the economy in general as well as middle market M&A. As it has been for Chicago Cubs fans for the last century, “waiting until next year” may be the best policy for business owners.As a less pessimistic business environment evolves, we believe that business owners considering an exit over the next 4 years have a 2 year window (2011-2012) to execute the transaction.
We feel that given the unpredictability of the electorate and the anti-business, high tax policies embraced by the past Congress, waiting beyond December 2012 to execute a liquidity transaction may be unwise.If they haven’t done so already, business owners should implement strategies that enable them to have the option to exit by the end of 2012, before another election may lead to the return of anti-business policies and an unhealthy climate for middle market companies and middle market M&A."
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