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Fifth Street Finance CEO Len Tannenbaum on potential tax hikes’ impact on small businesses.
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Could he with President Obama heading into a second term in office it looks like the health care laws here to stay in the bush tax cuts could be on the chopping block so what does this mean up for our economy and if you're a business owner is it time to sell joining us now -- Lantana bomb.
Fifth Street Finance corps CEO courtesy and thanks for coming it always happy to be here now of course say was in the news when George Lucas sold his business to Disney for a couple of billion dollars Star Wars -- If you -- yeah.
But a lot of people thought that -- small businesses would follow suit he clearly had some tax interest from -- getting the capital gains in before tax rates went up at all costs I'm surprised though that we haven't seen a huge uptick.
In business sales particularly small business sales in the past quarter -- you -- makes two of us it's just amazing.
That people really waited some last minute till after election we got a bunch of phone calls the next week -- can be close by year end we're closing some deals by Europe and.
But it's amazing we'd literally until after the election which basically offered by the way the third quarter there was a 2% increase over last year in the number of of discrimination is also doesn't feel -- what you think we're gonna see a much bigger jump for the fourth not much bigger not much bigger because -- not a time spent time they made the decision.
The not like to be done by the end of the year but some businesses -- jumped in and -- that we gonna do with us here.
You mean they just want to jettison all they've built because of an unknown.
Now most of our dividend recaps are taking money off the table the pavement but -- the companies that you deal with because you lend to a lot of small businesses 78 of do you say that some of these guys are gonna start selling their businesses because they just can't deal with what they may face they can't deal with uncertainty in the -- -- Is it creates volatility in their future so the question is should take some money off the table remember that selling all of that.
We -- to a business -- private equity sponsor typically then they're selling some and keeping some but still they're deathly taking risk off the table what other -- -- The first the biggest worry is I went around kids -- the Connecticut -- all the different cities -- -- Stamford -- otherwise.
The biggest worry was increase health care cost expanding at this very small businesses.
The middle -- business has a little bit of the different worry they're just worried about the global uncertainty.
Some of -- could be downgraded in US data this thing as a result.
Are they hoping that there will be some kind of deal by which -- had they won't they won't be facing kind of capital gains that there.
That they could be face and we primary have the potential of -- doubling capital gains actually tripling the dividend tax right.
Well there was very some grand compromising that was talked about and just never came to the floor which is the problem.
And what really should there was also something we do already have a blueprint a bipartisan blueprint calls Simpson Bowles.
Of course -- is a Democrat Simpson is a Republican you'd like Alice Rivlin lifelong Democrat is also an advocate of this.
Why if Republicans were Smart to -- they put this on the table should look here -- a bipartisan plan Mr.
President.
Let's go -- like -- people's idea I think really you have the right idea in terms of tax cuts mean tax increasing our revenue increasing and spending -- The problem is the president didn't bring that to the floor.
It needs to go the Florida bipartisan solution we lost great senators like independent Joseph Lieberman who could've actually bridge the gap in the senate.
And Olympia -- So who's going to form the metal is the question.
Because we our business network everybody's always wondering how to -- make money how to -- protect the money I have are their certain sectors that will be effective less than others and should people be investing enough that both sides need infrastructure spending both sides.
Need.
The consumption of the least the foods like McDonald's to produce safe investment Caterpillar believe -- -- not abusive investment these roads are gonna get repaired one way or another which is not to be would drive -- them.
So I like infrastructure replace our largest equity play -- fifth street.
But I also like medical bleed -- medical technology -- know Obama hit the obamacare is here to stay -- now everybody is adjusting to it.
We did it in reverse order we put up the -- first and -- our health care this is the investor chart that would include cat yes.
But I mean when obamacare here you really have the health care companies looking to not -- say if that meet those technology.
Challenges that come with -- obamacare.
And so there's a lot of opportunity for some companies yeah.
-- -- about always a pleasure to see you and your business is doing well all right we're doing lower about a billion market cap and still growing our proprietary ago watched you grow here on fox business and thank you perhaps agreed to finance one refiners.
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