What Should Businesses Know Following the News of the Election?

(SALEM, Ore.) - The U.S. Presidential election was more than a simple process to elect a new president. Rather, it was an ideological showdown between Hillary Clinton, a career politician who was the obvious choice in the eyes of most voters, journalists and business owners.

Then, there was Donald Trump. Someone well-versed in businesses, but seen as a complete outside to the political arena with no governing experience.

Regardless of which side of the political spectrum you might be on if you’re a business owner you’re probably wondering what the results mean for the economy, the deal-making market and industry in general.

The past eight years have seen steady economic expansion, but it’s been pretty slow at times, and Firmex.com reports the effects have been wide-reaching.

In their report of Mid-Market M&As, the company says there has been a reduction in the number of deals made for many reasons, including tight regulatory environments.

The question for business leaders is what to expect in the face of this news, and what they should do to move forward.

Obamacare: Will It Stay Or Will It Go?

The Affordable Care Act, also known as Obamacare, has had a tremendous impact on every aspect of life for most Americans. It ranges from having personal effects on their medical care and spending, to major impacts on employers.

Donald Trump campaigned on a promise of doing something to change President Obama’s signature piece of legislation, but now he looks to be softening his stance and moving toward making alterations, rather than a full-on repeal.

This can be troubling for some people in terms of having access to healthcare, and it could make people uninsured, depending on the specifics of what happens, but business owners, including small businesses, in particular, have had many complaints about the legislation.

There could be benefits to some businesses if changes are made to Obamacare, but a lot of it will depend on the changes that are made, whether or not there’s a complete repeal, and what measures are put in place to replace it if it is repealed.

The Donald Trump presidency and retention of the House and Senate by Republicans could also impact the overall healthcare market and investors in this sector.

Healthcare has seen tremendous growth over the past eight years, both because of Obamacare and also an aging U.S. population, so the political landscape will have to be watched closely by members of the industry and investors.

Taxes and Regulations

Investment professional Lloyd Blankfein spoke last week about what he thinks the impact of the election will be. Although Blankfein had been a supporter of Hillary Clinton, the Goldman Sachs chief told media outlets he was willing to take time and see what Donald Trump decided to do regarding governing.

He mentioned the possibility of a traditional Republican leadership style which includes corporate tax cuts and loosening of regulations. Blankfein seems relatively optimistic, particularly considering the loss of his candidate, but he has spoken to global employees of Goldman, assuring them the firm has a plan for all possible situations.

Raises in the Minimum Wage

While many Republican leaders are not for minimum wage hikes and instead like to leave that up to free market moves, following the election, there have been increased proposals that passed in several states which include Arizona, Maine, and Washington.

For example, in Arizona, the minimum wage will rise from $8.05 to $12 by 2020. In that state, voters also decided to have minimum wage workers at large companies get 40 hours of sick days a year, and at smaller businesses, 24 hours of sick leave per year.

Business owners will have to account for both hikes in the minimum wage rate happening at the state level, as well as other changes voters might continue to look for regarding work conditions.

Global Relationships

While Donald Trump won the electoral college vote last week, he didn’t win the popular vote, and he hasn’t necessarily won the favor of foreign countries just yet. For businesses that have operations and employees across the borders of the U.S., this situation will likely need to be handled carefully.

These companies should ensure they’re reaching out to foreign employees and associates as the situation plays out, and keep them ahead of their own plans regardless of who’s president.

This can also apply to the M&A market, for companies that may be eyeing foreign deals.

Only time can tell exactly how a Donald Trump presidency will play out, and regardless of whether business leaders voted for or against the highly divisive Republican candidate, it’s time to start making plans and moving forward with an eye toward potential policy changes.