KENNESAW, Ga. | Feb 1, 2018
With the passage of President Donald Trump’s tax plan, family-business entrepreneurs seem to be getting a big bump in social investment and corporate growth. Given that 80 to 90 percent of U.S. businesses are family-owned and that such companies contribute 64 percent of the GDP, according to Kennesaw State University research, the administration has taken a hardline stance in highlighting those businesses’ economic and cultural value.
Yet this tax overhaul isn’t without its problems. Especially when it comes to the private-equity space, the plans to limit deductions on debt interest can actually hurt family-business entrepreneurs who rely on this forward-focused capital in order to innovate and expand. With both possibility and uncertainty on the horizon, family-business entrepreneurs need to better understand the resources that private-equity firms offer as they prepare to forge ahead.
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