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Cliff Roesler, Angle Advisors managing director, Investment Banking, on why now is the time for investors to act on M&A.
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It's 15%.
In January 1 that rate could increased drastically to 25%.
To my next guest says -- -- are looking to make an emanate dale.
Yep you -- -- soon joining us now to explain -- rose look principal at an.
Angle advises cliff.
So we could see a flurry of deals in the short term hit how would you.
Describe the current M and -- environment.
Actually it's it's an excellent environment right now.
The activity level both among strategic buyers and private equity buyers is very very strong and to your point some of this has been driven by.
An expectation that capital gains rates will go up.
And -- they could potentially go to 39% of President Obama has his way we're talking about ridiculous rates but let's explain to people like you're saying they only need sixty days it's because you got to get the deal going to finish it.
Before the rates go up right.
That's right Tracy most deals probably take six months on the inside.
To get completed.
So think about where we are for the year if you intend to close a transaction.
Before the end of the year you probably get better get started -- with that in mind clear what sectors are you looking at in particular.
One of the sectors has been most active so far this year as the oil and gas sector I think you'll continue to see.
Strength and -- in oil and gas lump particularly on the development side.
My firm is a specialist in the automotive in the automotive aftermarket generally the particular industry we're seeing a huge amount of activity.
You know all those industries.
Often use limited liability partnership and not ability companies.
And then of course there's a venture capitalists that has the carried interest all that subject to change right now as far as the tax rates go.
About what are you feeling ran out there from people do you feel like they are gonna Jack those rates.
Well that's a very good question I -- I wish that my crystal lawlessness and not a little clearer than this it's not in the you know that what we're seeing is but essentially precautionary movements which is if you're thinking about a private owner for example divesting his business.
He absolutely is not gonna wait to February and look back and be disappointed right and any -- a number of other things that are driving activity think about the corporations.
-- corporations are gonna be under pressure to distribute access cash low prior to year end to avoid dividend tax gains right.
And so those companies are also trying to put that money to work now to establish their growth through the cycle.
And they wanna get money to work this year before they have to give -- -- the shareholders.
You mentioned oil and gas what about the pharma sector -- we've seen some big moves and then recently traditionally do know sort us about regional banks as a mean a lot of thought out there -- regional banks.
May indeed stops.
Taking each other OB -- -- merging into deal with new bank rules is that something you factor in.
Well actually I think those both -- industries that we don't follow as closely we're seeing broad based strong activity.
I can't give a particular comment on you know those industries I'm afraid okay.
Alright very interest think for a slow -- and it goes as you mentioned that cliff talking about the tax implications and as you pointed out Tracy.
Got to get going now because of all the -- what needs to be dominant.
