Friday, September 24, 2010

Tech Companies Go Shopping Abroad - BusinessWeek

This is an interesting article from Businessweek on M&A activity shifting overseas due to the tax situation onshore in the states. It seems to me that we are letting valuable acquisition dollars, as well as funding for smaller startups go to places with more favorable taxes. As the figures show, "$7.6 billion has gone overseas so far this year, a 168 percent increase from the same period in 2009". This is staggering to me. This makes things not only difficult for the acquired company, but also much more difficult for for the investor/acquirer.

One of the quickest, and easiest, way is to keep American investors' money in America is through tax breaks. This isn't old news. However, our government seems to just throw money at the wall to see if something sticks. Why not focus dollars at something that has proven to work? America's economy was built upon, and thrived via, the startup company and its access to capital. We have to ensure that it can get it in the future.

Tech Companies Go Shopping Abroad - BusinessWeek