Biden Win Would Hit Private Equity Deals, Add Scrutiny to M&A
- Buyout industry would take hit from hike to capital gains tax
- Tech, health-care mergers would face high bar from regulators
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A Joe Biden victory on Nov. 3 would have a sweeping impact on mergers and acquisitions as he sets his sights on a higher corporate tax rate, new regulation and increased antitrust scrutiny.
The biggest loser might be private equity dealmakers. If firms don’t offload assets before the end of the year, they could have to pay almost double the current rate of capital gains tax on any profits -- a hit that may also dissuade founder-backed companies from pursuing a sale. But it could be a busy year for deals in the fossil-fuel industry, where companies are likely to continue consolidating and divesting assets that would have little opportunity to grow under a Biden administration.