Impact of US Tax Reform on Mergers and Acquisitions: New Opportunities and Pitfalls

Wolters Kluwer's Securities Regulation Daily

Edward E. Gonzalez Alec J. Jarvis David M. Rievman Eric B. Sensenbrenner

The recently enacted Tax Cuts and Jobs Act will significantly impact mergers and acquisitions, particularly in the areas of deal modeling, tax diligence and acquisition agreement negotiations. The changes are likely to make the United States a more attractive jurisdiction for inbound M&A activity and should allow many U.S. companies to access cash from their foreign subsidiaries at a lower U.S. tax cost.