The U.S. presidential election is just days away, and its results could have significant implications for business owners across various industries. Trump and Harris have both discussed implementing policies that could shape regulatory frameworks, tax structures, and market dynamics.  

American business leaders should be prepared for either outcome and its positive or negative impact on their operations for the next four years. Here’s how each candidate’s proposed policies could potentially impact businesses.

Regulatory Environment 

• Donald Trump: If Trump wins, he will likely refrain from extensive regulatory oversight similar to his previous term, which included significant deregulation in industries such as banking and energy. The Trump administration is expected to ease restrictions on mergers and acquisitions, particularly in sectors like airlines and finance, where he may roll back regulations introduced by the Biden administration. 

• Kamala Harris: A Harris administration would most likely expand regulatory frameworks. “Corporate insiders expect Harris to broadly continue President Joe Biden’s policies, including his war on so-called junk fees across industries, although there is hope for a more moderate approach,” according to CNBC. Regulations aimed at protecting consumers and ensuring fair competition might be reinforced rather than diminished. 

Mergers and Acquisitions 
Analysts predict that M&A activity will continue rallying regardless of the election outcome. Experts expect macroeconomic factors to drive this activity more than individual policies. “We expect M&A activity to rise further in 2024 in a multiyear recovery,” said Morgan Stanley policy strategist Ariana Salvatore. “So far, we aren’t seeing evidence that the election is having a significant impact as deal announcements and completions continue to build.” 

• Industries positioned to flourish in a Harris win:  
  • Clean Energy: Harris’s policies would favor renewable energy businesses and those aligning with sustainability standards. 
  • Healthcare: A Harris administration could benefit this industry by expanding coverage and increasing service demand.   

Some business owners are concerned about Harris’s proposed capital gains tax. If implemented, this could impact exit or investment strategies. However, this proposal would still require Congressional approval before moving forward if Harris is elected. Even if this happened, it likely wouldn’t take effect until the end of 2025 at the earliest. 

Regardless of the election outcome, business owners can find some reassurance that overall economic conditions and global dynamics often overshadow the specific policies of an individual administration. 

If you would like to learn how ACT Capital Advisors may assist you with your future plans, please reach out today to explore your options.

About ACT Capital Advisors 
ACT Capital Advisors is a premier mergers & acquisitions firm representing lower to middle-market companies across all industries. ACT has a 40-year history of deal-making, closing 250+ transactions, and unlocking over $2.5 billion in wealth for its clients. For more information, visit https://actcapitaladvisors.com.