This week’s edition of the M&A Weekly Digest covers an explanation about how private equity firms actually operate in the, a forecast of Canadian M&A activity for the remainder of the year, and the latest news on a possible extension of the Bush era tax cuts.
How Private Equity Firms Operate in the Middle Market
“Even though excessive debt was the norm for years on huge deals, the vast majority of equity firms operating in the U.S. focus on much smaller deals. And private equity firms tend to hold on to their investments for years, all with the goal of growing them.
These firms tend to fly under the radar screen of even the business media. The deals they close are well below $250 million in value, and most are even below that.”
Canadian Mergers and Acquisitions Activity Expected to Expand
“In fact, according to a couple of recent articles in the National Post, a leading Canadian publication, if anything, the expectations of M&A activity through the end of the year in Canada are even stronger than they were earlier this year.”
Tax Rate Extension?
“Increasingly, from a number of sources, we are hearing rumblings of a proposal to extend the Bush tax rates into 2013. This, of course, would include keeping capital gains taxes at their current historic low of 15% rather than allowing them to increase to 20% at the beginning of 2013.”
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