Join the Federal Bar Association at the 29th Annual Insurance Tax Seminar June 1-2 in Washington, D.C. for a timely discussion on “Mergers, Acquisitions, and Internal Restructurings.” Register today at www.fedbar.org/instax17 to take advantage of early bird discount rates!
Signs point to 2017 being a banner year for sizeable mergers and acquisitions (M&A). A higher level of confidence in businesses and expectations for lower corporate tax rates as a result of proposed tax reforms could serve to accelerate the pace of M&A in certain sectors, including the technology industry. Tech companies tend to engage in M&A because the market becomes saturated, so firms combine in order to consolidate the industry, to expand their market share, and to save costs. When the market is saturated, it is more difficult to acquire customers and grow the business; hence the result is lower profitability. However, with M&A activities, a company can consolidate resources resulting in significant cost savings and business growth.
M&A likewise represents a viable way for insurance distributors to flourish. As customer demands increasingly focus on digital options, it is harder for insurers to avoid acquisitions. Expect the insurance industry to continue investing significant dollars in acquiring new knowledge and new technologies.
When one company acquires another, usually that act requires significant borrowing to pay for assets of the acquired company that could come through the form of cash borrowings, issuance of bonds, or stock repurchasing. This can place a financial burden on the acquiring company to effectively manage its cash flow debt and take advantage of any tax impacts. As such, M&A transactions are among the most multifaceted in the life of a company. As a branch of corporate law dealing with companies that are purchasing and/or merging with other companies, M&A lawyers at the Insurance Tax Seminar will explain the appropriate financing for M&A and provide advice concerning the drafting, negotiation, and performance of contracts for the sale of businesses.
Activities in the M&A sphere frequently involve lawyers applying knowledge in related areas of financing and other corporate disciplines to address a client’s business needs. The process of structuring M&A transactions can lead to tax consequences. Attendees at the upcoming Insurance Tax Seminar will examine the upside and the downside of the latest corporate tax rules for M&A.
Insurance Tax Seminar speakers will also assess internal restructuring and provide guidance on identifying a client’s business objectives; building a road map for the client from start to finish; conducting due diligence; determining the tax implications; and working with antitrust attorneys to assess regulatory obstacles and gain regulatory approval.
Panelists at the Insurance Tax Seminar will discuss how to handle the substantive, procedural, and practical issues that arise during a restructuring or reorganization while using securities, tax, real estate, and employment law knowledge to close deals. Don’t miss this seminar taking place at the JW Marriott in Washington, D.C. June 1-2. Save on registration by using the early bird discount rate on or before May 5. Visit www.fedbar.org/instax17 to learn more!
Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, patent, and other IP issues; and directing the strategy and implementation of public relations, blogging, and social media campaigns.