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Regulatory: The impact of uncertain government policies

How unfinalized regulation affects businesses’ bottom line

Uncertainty is always a challenge for business. Owners and supervisors best manage their business when they know the key costs of their operations with reasonable certainty. Raw materials, utilities and labor costs, among many other factors, play a major role in decision-making and investment planning.

One challenge clients consistently face is that many of the costs they must plan for are not market-driven, but rather imposed by the government—such as healthcare, taxes and various regulatory schemes. These costs may not be welcome, but if they can be planned for, they can be profitably managed. Today, however, our clients frequently must try to manage around government policies that are not actually final. When a government policy cannot be considered final, the effect on investment and business can be significant.

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Thomas McMorrow

Tom McMorrow is a Partner at the law firm Manatt, Phelps & Phillips, LLP, in the Sacramento Government practice group and is Chair...

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Contributing Author

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Jon Costantino

Jon Costantino is a Senior Advisor at law firm Manatt, Phelps & Phillips, LLP, in the Sacramento Government practice group. He manages complex...

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