Markets don’t like uncertainty, but can you blame them? We all would like to know what’s just over the horizon so that we can plan accordingly, and even more so if something bad is coming. While uncertainty is something our market has experienced a lot of over the last couple of years, the veil has been lifted thanks to recent activity. With renewed certainty, one would expect an increase in M&A activity.

Legislative Effect on M&A Activity

Federal tax law changes always influence business planning and forecasting, especially when it comes to the decision to buy or sell a company. The tax legislation passed by our current administration is the most monumental in decades, which is one reason why the time leading up to its passage had everyone on pins and needles. The unknown of what would be passed into law, or what would not, made the market risky and business owners timid. Now that all of the cards are on the table and the outcome is somewhat favorable to corporations and business owners, it is expected that M&A activity will be on the rise.

Related topic: Business Acquisition Financing

How the Stock Market May Effect M&A Activity

Combine federal tax laws that seem to be working toward a more even playing field with contagious good feelings across all sectors, and you should get a lot of business owners ready and willing to make deals. The stock market’s steady climb, which has been based on positive earnings, economic data, investors’ eagerness and the aforementioned tax changes, only adds to M&A enthusiasm. Even despite the stock market’s more recent period of volatility, M&A activity has continued its upward trend.

Historically, business mergers and acquisitions pick up after a bull market has run for a time because maturity means certainty. Additionally, investors, business owners and commercial real estate brokers alike are more focused on growth than they are concerned about another financial collapse with the passage of time since the recession.

With over three decades of experience in financing business mergers and acquisitions, Links Financial can help you work out the best deal and see your 2018 business goals through to fruition. If you’re looking to buy or sell a company this year, give the experts at Links Financial a call today.