Q3 2025 Buyer Webinar: Post OBBBA Analysis with Wesco and Mercantile Bank

Recording

Key topics

0:00 - 1:40 Introduction and Agenda:
1:41 - 5:25 Meeting the Speakers
5:26 - 13:38 New Tax Law's Impact
13:39 - 25:48 Company Approval Process
25:49 - 33:40 Finding the Right Credits
33:41 - 38:16 Negotiation Challenges
38:17 - 43:38 Pricing Strategies
43:39 - 49:24 The Role of Intermediaries
49:25 - 57:00 Future Market Predictions
57:01 - 59:36 Q&A

Joined by: Domenic Macioce, SVP of Tax at Wesco, and Pete Scudder, FVP and Financial Reporting Manager at Mercantile Bank

Reunion hosted a buyer-focused webinar with Domenic and Pete as they share practical insights on approaching tax credit transfers in a post "One Big Beautiful Bill Act" (OBBBA) landscape.

Insights from your peers:

1. Impact of Tax Legislation: New tax laws like OBBBA significantly impact the market by forcing companies to re-evaluate their tax capacity. This leads to a temporary slowdown as buyers adjust their financial models, highlighting the critical need for companies to monitor and respond to policy changes.

2. The Acquisition Process: The process for buying tax credits is formal and requires approval from top executives and a cross-functional team. Companies meticulously review each deal, often using a detailed package that outlines economics and risks, and they've learned that despite a structured approach, the timeline can be unpredictable due to administrative hurdles.

3. Economic and Risk Evaluation: Buyers now look beyond a simple price discount, focusing on the overall Return on Investment (ROI) and the net value after considering payment terms and the time value of money. They mitigate risk by diversifying their portfolio, carefully vetting counterparties, and ensuring strong legal protections like indemnification and insurance.

4. The Role of Intermediaries: Intermediaries like Reunion are crucial for managing the complex due diligence process, particularly by ensuring sellers are prepared with the necessary documentation. This helps streamline the transaction and build trust, which is highly valued by buyers.