How Trump Could Affect M&A Activity

IRVINE, CA—Despite speculation to the contrary, there seems to be no lack of confidence in mergers and acquisitions since the election, and lower tax rates under Donald Trump could fuel this activity, Allen Matkins' tax partner Frank Dworak tells GlobeSt.com. Dworak recently joined the firm's Orange County office in the corporate and finance department and tax-practice group, where he will advise clients on joint ventures and other tax-oriented entity structures, corporate mergers and acquisitions, partnerships, domestic and international tax planning and tax controversy matters.

Dworak has advised clients with respect to taxable and tax-deferred mergers and acquisitions, partnership and LLC structuring and operating issues, like-kind exchanges and international tax issues including withholding, transfer pricing, subpart F, treaty issues and passive foreign-investment companies. We spoke with him about his new role, his take on corporate mergers and acquisitions and the impact a Donald Trump presidency could have on this activity.

GlobeSt.com: What are you most looking forward to in your new role with Allen Matkins?

Dworak: The firm's platform fits well with my practice, and I'm looking forward to finding ways to expand the firm's already strong tax and joint-venture practices, as well as getting to know my new colleagues.

GlobeSt.com: What are the most interesting trends emerging in corporate mergers and acquisitions?

Dworak: Cross-border deals are becoming increasingly common, and at the same time the complexity of international tax is growing. Tax lawyers need to stay on top of the evolving international-tax landscape to be able to advise clients effectively.

GlobeSt.com: How will having Donald Trump in the White House change corporate mergers and acquisitions?

Dworak: Some had speculated that a Trump administration might depress M&A activity due to the uncertainty surrounding his presidency, but so far there doesn't seem to be a lack of confidence. At the very least, lower tax rates under Trump may drive M&A activity by freeing up capital and reducing the cost of taxable transactions.

GlobeSt.com: What else should the real estate industry know about corporate mergers and acquisitions?

Dworak: Real estate and other M&A professionals always should bear in mind the potential transfer tax, property-tax reassessment, and withholding tax issues—both domestic and cross border—that arise in any transaction where real estate is involved. These issues can arise equally in an equity deal as well as an asset deal and should be evaluated as soon as possible to avoid potentially thorny issues at the 11th hour.

IRVINE, CA—Despite speculation to the contrary, there seems to be no lack of confidence in mergers and acquisitions since the election, and lower tax rates under Donald Trump could fuel this activity, Allen Matkins' tax partner Frank Dworak tells GlobeSt.com. Dworak recently joined the firm's Orange County office in the corporate and finance department and tax-practice group, where he will advise clients on joint ventures and other tax-oriented entity structures, corporate mergers and acquisitions, partnerships, domestic and international tax planning and tax controversy matters.

Dworak has advised clients with respect to taxable and tax-deferred mergers and acquisitions, partnership and LLC structuring and operating issues, like-kind exchanges and international tax issues including withholding, transfer pricing, subpart F, treaty issues and passive foreign-investment companies. We spoke with him about his new role, his take on corporate mergers and acquisitions and the impact a Donald Trump presidency could have on this activity.

GlobeSt.com: What are you most looking forward to in your new role with Allen Matkins?

Dworak: The firm's platform fits well with my practice, and I'm looking forward to finding ways to expand the firm's already strong tax and joint-venture practices, as well as getting to know my new colleagues.

GlobeSt.com: What are the most interesting trends emerging in corporate mergers and acquisitions?

Dworak: Cross-border deals are becoming increasingly common, and at the same time the complexity of international tax is growing. Tax lawyers need to stay on top of the evolving international-tax landscape to be able to advise clients effectively.

GlobeSt.com: How will having Donald Trump in the White House change corporate mergers and acquisitions?

Dworak: Some had speculated that a Trump administration might depress M&A activity due to the uncertainty surrounding his presidency, but so far there doesn't seem to be a lack of confidence. At the very least, lower tax rates under Trump may drive M&A activity by freeing up capital and reducing the cost of taxable transactions.

GlobeSt.com: What else should the real estate industry know about corporate mergers and acquisitions?

Dworak: Real estate and other M&A professionals always should bear in mind the potential transfer tax, property-tax reassessment, and withholding tax issues—both domestic and cross border—that arise in any transaction where real estate is involved. These issues can arise equally in an equity deal as well as an asset deal and should be evaluated as soon as possible to avoid potentially thorny issues at the 11th hour.