Welcome to the mid-summer days and heat of summer. We hope this finds you on a beach somewhere enjoying the cool breezes off the water and that you are reading a good book. We wanted to give you an update on the happenings at KN+S and the pulse of our KN+S clients.
Overall, we believe the local New England economy continues to chug along steadily. Consumer spending is still strong, as witnessed firsthand by the results of our many Consumer Product/Food companies. Many are even trending ahead of or at least at par with last year, which happened to be one of their strongest years ever. Technology, as you know, is one of our firm’s main focuses. Demand for tech and software products continues to be high, although the startup/fundraising funnel has seemed to close tightly in the last few months. However, that’s not the case for M&A and exits, as many of our clients are currently in the process or have already gone through some type of recap or financing this year. Big money continues to be plentiful for those tech companies that offer good customer traction and trends toward future growth. Although valuations have come down a bit, there is still an active market out there for many companies to explore. And lastly, the stock markets, while down for the year, continue to chug along and while quite volatile, appear to be stabilizing a bit more in the last few weeks.
KN+S life continues to be busy, even during the summer. Of course, we take Fridays off in July and half of August. This allows us to give our staff and professionals time to recharge and recover from the grueling demands of the many deadlines we just passed. Hiring continues to be a challenge to keep up with our growth (as we have seen in lots of industries), but we have been quite successful recently. We have already added a handful of new professionals to our expanding tax and audit teams. We look forward to introducing them to you soon.
While we do expect some type of tax legislation to pass before year-end that could be impactful, it is too early now to project what those changes will look like. We will keep you informed as to any new laws that may affect you on the tax side when they become formative.
In the meantime, enjoy the fine weather. We would love to catch up with you soon if you are open to meeting with us. It’s always good to touch base mid-year to discuss where you are and where you expect to be by year-end. In the meantime, enjoy the rest of the summer.
Jeffrey Solomon, CPA, CVA, Managing Shareholder at Katz, Nannis + Solomon, P.C. If you have any questions or would like to speak with one of our tax professionals, please contact our office at 781-453-8700.