As the 2024 U.S. presidential election looms, businesses across varied sectors brace for potential changes in their operating landscapes. Dechert has launched an online portal, 'Election 2024: Impact on Business,' providing insights into the anticipated shifts that a new Trump or Harris administration might bring. The implications span key sectors such as private equity, private credit, real estate, technology, private client, and life sciences. Despite positive economic indicators like dwindling inflation and potential interest rate cuts, the election introduces temporary uncertainties.
Understanding possible regulatory changes, investment scrutiny, tax policies, antitrust implications, labor reforms, and market dynamics can enable business leaders to better navigate the evolving landscape. Private Equity and Private Credit: A Trump administration may boost M&A activities in energy, U.S. manufacturing, and fintech, though support for renewables might wane. Deregulation and tax cuts could reduce compliance costs but increase foreign investment scrutiny and antitrust policy shifts, presenting a business-friendly yet challenging compliance environment.
Conversely, a Harris administration is likely to maintain strong regulatory activities, supporting green energy and infrastructure while increasing regulatory pressures on fossil fuels. Stricter bank oversight could benefit private credit lenders, though tech deals scrutiny and tax changes might elevate compliance costs. Real Estate: Under Harris, the real estate sector might face regulatory changes, including tax and labor reforms. While these could present initial challenges, initiatives promoting green energy and affordable housing may spur growth in sustainable real estate.
With Trump, reduced compliance and regulatory burdens may offer short-term benefits, but significant deregulation could impact long-term sustainability. Technology: A Trump administration would likely continue a business-friendly setting, with reduced federal oversight encouraging technology innovation, though tax and labor law changes might present challenges. Harris might enforce stronger AI, privacy, and cybersecurity regulations to build trust in technology, but rigorous scrutiny and potential tax changes could challenge the sector.
Private Client: Under Trump, reduced federal oversight and pro-business tax policies might affect regulatory landscapes and supply chains. A Harris administration might introduce higher tax rates and new regulations, boosting start-ups and homebuyers, though they could present regulatory and tax liabilities challenges. Life Sciences: Harris might focus on strengthening intellectual property rights, labor reforms, and tax policy adjustments, posing enforcement challenges in healthcare and life sciences. Trump's focus on reducing oversight, fostering innovation, and business-friendly tax policies could drive changes but introduce navigation challenges in regulatory landscapes.
The ability of either administration to execute their strategies relies on the congressional election outcomes. Strategic planning and diligent analysis will help organizations respond effectively to changes introduced by the incoming presidency. For a comprehensive analysis, explore Dechert's 'Election 2024: Impact on Business.' Dechert is a leading global law firm offering critical advice on high-stakes litigation, complex transactions, and regulatory issues across sectors such as financial services, private equity, private credit, real estate, life sciences, and technology.
