Debevoise tax partner and co-chair of the firm’s global tax practice Peter A. Furci and partner Gary M. Friedman contributed insights to Law360’s recent analysis of how various provisions of the U.S. House tax reform proposal could impact dealmaking.

In discussing potential effects on M&A activity, Mr. Friedman said, “These provisions should create greater pools of cash available for acquisition activities, although the one-time tax on existing offshore earnings will be a countervailing factor,” Mr. Furci observed that proposed changes to interest expense deductibility may meaningfully impact private equity firms, “Because PE buyouts are typically heavily debt-financed, a loss of interest deductibility, even in part, would effectively increase the cost of financing, which in turn may affect the price PE funds are willing to pay for targets.”

GOP Tax Bill A Boon For Deal-Making, But Questions Remain
By Benjamin Horney
November 3, 2017