In the Headlines
May 21, 2025
Tax Bill Could Be Boon for Debt Deals
Axios
Tax attorney Brandon Bloom was quoted in an Axios article about a part of the tax bill under debate in Congress that could boost leveraged buyouts (LBOs) by loosening restrictions on business interest deductions. The provision would allow deductions based on 30 percent of earnings before interest, taxes and amortization (EBITA) instead of the previous limit tied to earnings before interest and taxes (EBIT), potentially making debt financing more tax-efficient and attractive for dealmakers. Mr. Bloom highlighted that this change could lead to an increase in the use of debt financing and potentially drive more acquisition deals.
"If using debt is more tax efficient, then that may increase the amount of debt that's used in an acquisition and it may increase the number of deals that use debt at all," he said.
READ: Tax Bill Could Be Boon for Debt Deals (Subscription required)
"If using debt is more tax efficient, then that may increase the amount of debt that's used in an acquisition and it may increase the number of deals that use debt at all," he said.
READ: Tax Bill Could Be Boon for Debt Deals (Subscription required)