All politics are local. But politics -- and elections -- can extend well beyond either the dimensions of the voting booth or of the local precinct. The consequences of this week's national elections won't exempt the capital markets, including mergers and acquisitions.
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There are myriad implications to the merger marketplace resulting from this week's election results. Whether you're looking at regulatory oversight, tax policy or healthcare, there are consequences of Donald Trump's imminent ascent to the Oval Office and the Republican Party's control of Congress.
"At the end of the day, if we had to choose someone based on who was going to be the best candidate ... based on the campaign rhetoric, we ended up in the right place," Jeremy Swan, principal and national director of the private equity and venture capital industry at CohnReznick, a leading accounting, tax and advisory firm, said in an interview following the election results.
With the Trump presidency and the Republican control of both houses of Congress, "it's the most pro-business outcome we could ask for," Swan said. However, he noted there were some elements of the rhetoric bandied about in the campaign that could -- if translated into actual policy -- compromise the benefits of the outcome of the election.
The most immediate after-effect of the election is the rate hike that had been widely expected in December is off the table, Swan said. The Federal Reserve is going to want to keep rates constant at this juncture in order to assess the construction of the capital markets following the surprising outcome of the market.