September 14, 2020

Long-Term Capital Gains: Impact of Taxes on Transaction Proceeds

For stakeholders planning to execute a transaction in the near term, changes to the long-term capital gains tax should be taken into consideration as one of many factors when determining the best time to go to market. In our latest primer, we break down the impacts of an illustrative increase in the capital gains tax for transactions valued between $50mm and  $150mm, finding a 25.7% decrease in net proceeds across the board. Although historical and economic factors indicate a near-term increase in the federal capital gains tax, it is important to keep in mind that policy change will not happen overnight and that this information is best used as consideration for estate planning.

For further analysis of what a change in the long-term capital gains tax could mean for future major liquidity events, download the full infographic below.

Download Now