Alvarez & Marsal's Adam Benson was quoted recently in a Wall Street Journal article regarding the potential effect of tax reform on private equity transactions.
If rates move higher, more deals would breach the 30% threshold. More important, companies could be caught in a tax vise if Ebitda declined since interest expenses would stay the same, generating a higher tax bill, notes Mr. Benson.
https://www.wsj.com/articles/tax-reform-is-a-game-changer-for-buyouts-1511794152
