Analysis: US investment bankers' new pitch: Biden's tax hike

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Investment bankers keen to win lucrative assignments have a new pitch for U.S. corporate owners: hire us to sell your company now or pay at least ...

Investment bankers keen to win lucrative assignments have a new pitch for U.S. corporate owners: hire us to sell your company now or pay at least twice as much in taxes if Democratic presidential candidate Joe Biden has his way.

"We urge all of our current and potential clients to take note of the potential forthcoming changes, along with their associated consequences, as they consider an exit strategy for their business in the near future," Houlihan Lokey Inc bankers wrote in a note earlier this month.The investment bankers' pitch is geared toward individuals and families, as well as private equity firms, who control companies and can decide when to sell them.

Now the Asplundh family is working with investment bankers to cash out on part of its stake, partly because of its concerns about upcoming changes in the tax system, one of the sources said. It is seeking a valuation for Asplundh of as much as US$10 billion, according to the sources. Asplundh did not respond to a request for comment.

 

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