LOWER BUSINESS TAX RATE IMPACT ON MULTIPLES

Hi all, have we seen any impact of the 21% corporate tax (vs. previous 35%) impact trading EBITDA multiples on SMEs? I know literature from previous years typically speaks to trading multiples in the 3-5x range on EBITDA, however with lower tax rates achieving a 25% IRR could be possible (depending on assumptions, obviously) at now higher multiples based on the more favorable federal tax rates. Perhaps it's a win for the searcher over the next year or two as the market adjusts?

Thanks for any thoughts!



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