Tax credit transferability under the Inflation Reduction Act (IRA) has changed the landscape for monetizing federal clean energy tax credits. Historically, extracting credits from a renewable energy developer required a long-term investment through nuanced ownership structures referred to as tax equity investments. The IRA creates an attractive alternative to these investments by allowing credits to be directly transferred, creating a new credit marketplace for private equity portfolio companies and blocker corporations seeking tax savings. Transferability under the IRA The IRA permits ta ..read more

Private equity (PE) deal activity is on the rise, with 2024 marking a return to a normal growth trend after two down years. The decline in deal volume was primarily attributed to rising interest rates and slowing overall growth. However, signs of improvement in the fourth quarter of 2023 and first quarter of 2024 indicate a promising outlook for the year ahead. Learn key trends shaping the PE landscape in 2024, including sectors rebounding, strategic investment opportunities, and technology adoption. Growth trend resuming After a couple of challenging years, PE deal activity is expected to reg ..read more

Private equity companies may benefit from tax credits and incentives when engaging in mergers and acquisitions. Private equity companies should explore tax credits and incentives throughout their business lifecycle. Credits and incentives benefits often equate to 15-30% of investments. Two critical times to consider credits and incentives are before closing a transaction and after the merger. Explore the opportunities and considerations for private equity groups regarding tax credits and incentives. This may help improve investment returns and the company’s overall financial performance. Credi ..read more

Now that the annual tax deadlines have passed, it’s important for businesses to take a step back and review their total tax situation. It’s a crucial time to improve operations in your current operation and for future plans. Here three strategies to consider when reviewing your company’s total tax: Identify areas for improvement By reviewing your total tax situation, you can identify areas where you may be overpaying or underpaying taxes. This can help you adjust operations and financial planning to improve your tax situation to help your overall operational efficiency. Plan for the future Pos ..read more

High interest rates can have a significant impact on private equity strategy, particularly when it comes to driving efficiency. Let’s explore why high interest rates matter to private equity firms and how they can use this environment to their advantage. The impact of high interest rates on private equity firms Interest rates are the cost of borrowing money, and they are set by central banks in response to economic conditions. When interest rates are high, borrowing money is more expensive, which can have a ripple effect throughout the economy. For private equity firms, high interest rates can ..read more

In the fast-paced world of business, efficiency and accuracy are paramount. For portfolio companies looking to streamline operations, accounts receivable (AR) and accounts payable (AP) automation offer a powerful option. By leveraging automation technology, businesses may improve their financial processes, saving time, reducing errors, and improving overall productivity. AR/AP automation uses software to digitize and streamline invoicing, payment, and reconciliation processes. This technology not only eliminates manual data entry tasks but also enhances data accuracy and provides real-time ins ..read more

President Biden has released his 2025 budget and supporting tax revenue proposals, commonly known as the Green Book. While the Green Book serves as a conceptual starting point for discussions with Congress, it provides insight into Democratic tax policy. These proposals are subject to legislative approval (which may be unlikely in the Republican controlled House) and may evolve during the legislative process. A few of the more significant proposals applicable to private equity include: Corporate income tax rate increase Biden proposes raising the corporate income tax rate from 21% to 28%. If ..read more

As a grandparent, the joy of watching grandchildren grow and succeed is unparalleled. Through this rewarding journey, valuable lessons emerge that can be applied to nurturing and improving portfolio companies. Here are some key insights: Patience and long-term vision Just like raising children, fostering portfolio companies requires patience and a long-term vision. Building a solid foundation, providing support through challenges, and celebrating milestones are essential for both grandchildren and businesses. As a grandparent, you understand the importance of investing time and effort for sust ..read more

Selling a business to a private equity firm can be a complex and strategic process. Private equity investors look for specific criteria when evaluating potential acquisitions. Learn the top three critical factors to consider when selling a business to private equity: Valuation and deal structure One of the most crucial aspects of selling a business to private equity is determining the company’s valuation. Private equity investors will conduct thorough due diligence to assess a business’s financial health, growth potential, and market position. It’s essential for the seller to have a clear unde ..read more

When it comes to managing a portfolio company, tax strategies play a crucial role in boosting returns and financial performance. Implementing effective tax planning can significantly impact the bottom line and enhance overall profitability. Here are five top tax strategies portfolio companies can use to their advantage: 1. Use tax-efficient structures Choosing the right business structure can have a significant impact on tax liabilities. Portfolio companies should consider options such as limited liability companies (LLCs), S Corporations, or partnerships, which offer various tax advantages, i ..read more