I recently had the opportunity to attend the Institute for Professionals in Taxation’s 2017 Midwest Manufacturing Tax Workshop. The two-day workshop was held at the Sheraton Hotel in Ann Arbor, Michigan. Here are a few of my key takeaways:
- Expect there to be an uptick of merger and acquisition activity soon for manufacturers. The nationwide volume of mergers & acquisitions declined in the latter half of 2016 amid political uncertainty. Partially due to this lack of activity, cash balances are now sitting extremely high and this high liquidity is expected to result in a large uptick in mergers and acquisitions as 2017 progresses. Sales & use tax professionals should pay close attention to any M&A activity at their company due to the potential sales tax consequences of the merger or acquisition itself, as well as understanding the sales tax liabilities of the company being acquired (including nexus implications).