We will be hosting a lunch hour call with our policy team this Wednesday 12/20 at 12:30PM EST. On the call we will discuss implications across the sector of the new Tax legislation, including our view of categorical winners and losers.
Positive and Negative impacts to be discussed on the call:
There are at least 4 tiers of companies for whom this nets positive impact:
Tier 1 = Companies who are fast innovators, generally tight on cash, and any extra access to cash helps keep the flywheel in play (AMZN)
Tier 2 = Companies that are mature, have tons of excess cash, don't really know what to do with it, have a buyback – this will drop into the buyback bucket (AAPL)
Tier 3 = Companies who do not have (enough) growth and need help in that category, cue M&A!
Tier 4 = Companies who are debt heavy and need cash, this is an important lifeline.
There are at least 3 tiers of negative impact:
Tier 1 = Companies who looked like a great acquisition target because they are foreign domiciled and hence an efficient use of cash for a US company with lots of stranded cash (Ahem…NXP)
Tier 2 = Companies who compete head to head with US companies who had been constrained by higher tax rates and (maybe) lower re-investment opportunities
Tier 3 = Companies who have good business but have been using debt to shield taxes à Les Jeux Sont Fait (translation = “the game is up”)
For this breakdown and much more, grab your lunch and join us Wednesday 12/20 at 12:30PM EST.
As always, our prepared remarks will be followed by a live, anonymous Q&A session. Please submit your questions to .