Tax Cuts and Jobs Act: Opportunities for Middle Market

Verit Advisors’ view is that the Tax Cuts and Jobs Act alters the tax landscape and creates a unique opportunity for companies to examine both corporate strategy and structure in light of stakeholder objectives. The cut in the corporate tax rate in particular is a cornerstone of the new law. To the extent that the cut in the corporate tax rate increases free cash flow, companies may bolster growth initiatives with new capital expenditures, acquisitions, or organic expansion. In addition, the cut in the personal tax rates may increase disposable income and therefore consumer spending.

While it is too early to tell the overall effects the new tax law will have on the corporate landscape, Verit believes that the following are worth examining as a part of a strategic review. To read more, click here.

Current Market Dynamics: M&A

M&A activity, including with existing ESOPs, remains strong due to continued attractive valuation and financing markets as well as available capital from strategic and private equity buyers.  Verit‘s deep M&A expertise ensures optimal, price, terms and conditions.  Clients and fiduciaries alike value Verit’s thoughtful and efficient process.

Recent Transaction 

Verit Advisors was engaged by AArete to provide expertise in ESOP structuring, valuation and debt capital markets, allowing AArete to evaluate and optimize its current and long-term objectives. AArete announced an employee stock ownership plan (ESOP), giving its employees a stake through share ownership in the company.   AArete is an advanced data analytics-driven management consulting firm in Chicago. This transaction closed in April 2018.

Places We’ll Be

Mary Josephs and Rob Ruszkowski, Principal, will both be speaking at the The ESOP Association’s 41st Annual Conference, May 24 – 25, 2018 in Washington, DC. For more information, click here.

Verit In the News

Mary Josephs, Founder and CEO of Verit Advisors, has been selected as one of the most influential women in mid-market M&A by Mergers & Acquisition magazine for the second year in a row. Women represent only 10 percent of the middle market and they hold even less senior management positions. Ms. Josephs is a nationally recognized leader with more than 28 years of experience with ESOPS as a specialized solution-oriented succession and liquidity transaction for middle market companies. To read more click, here.