Marsh, Berry Brown & Brown
Activity On The Rise
- It is reasonable to assume the current capital gains tax rate of 15 percent will increase to 20 percent as of Jan. 1, 2011. Pundits are making the argument that it could be even higher in a few years. Even if it does not go beyond 20 percent anytime soon, that is still a 33 percent increase in the tax rate, and may be added motivation to sellers who have been on the sidelines.
- Public brokers are still under pressure to show profit to their shareholders. After being less active for the past 12-18 months they are much more interested and engaged in the acquisition process.
- Due to less activity and deals in the pipeline, M&A brokers stopped bringing as many deals to the public brokers and started looking again at local or regional agencies. The result is a ramp up in activity from this group of buyers, which ultimately increased the total pool of potential buyers.
- While the economy is not really improving, it is not performing as poorly as it was. That seems to be giving some buyers and sellers enough confidence to make deals.
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