BPBG Blog #6

How the New Tax Bill Boosts Business Sales and Valuations

Posted on April 30, 2025 by BridgePoint Business Group

At BridgePoint Business Group, we specialize in connecting business owners with buyers to facilitate smooth and profitable transactions. On April 29, 2025, a White House press briefing revealed details about a new tax bill in Congress that could significantly impact the business brokerage landscape. Shared by Secretary Bessent, the business-focused provisions in this bill are poised to create a more favorable environment for buying and selling businesses. Let’s explore how these changes can enhance business valuations, attract more buyers and sellers, and ultimately benefit our clients at BridgePoint Business Group.

Overview of the Business Provisions in the Tax Bill

The proposed tax bill includes several measures designed to support businesses, which directly influence the dynamics of buying and selling companies. Here’s what businesses can expect:

• Full Expensing for Equipment: Businesses can immediately deduct the full cost of equipment purchases instead of depreciating them over time.
• Full Expensing for Factories: The cost of building or acquiring new factories can be fully deducted in the year of purchase.
• Deregulation: A reduction in bureaucratic red tape, making it easier for businesses to operate.
• Cheap Energy: Policies aimed at lowering energy costs, a major expense for many companies.
• Regulatory Certainty: A stable regulatory environment to help businesses plan and invest with confidence.

These provisions are funded by tariffs as a replacement for lost tax revenue, which we’ll discuss later. Let’s dive into how these changes can impact the business brokerage market.

How These Provisions Impact Business Sales and Valuations

1. Full Expensing for Equipment and Factories: Increasing Business Value

The ability to fully expense equipment and factories is a significant boon for businesses looking to sell. Under this provision, companies can deduct the entire cost of new equipment or factory investments in the year of purchase, rather than spreading the deduction over several years.

How This Impacts Business Brokerage:

• Higher Profitability for Sellers: Businesses that take advantage of full expensing can reduce their taxable income, boosting their net profits in the short term. Higher profits often translate to higher business valuations, making companies more attractive to potential buyers.
• Attracting Buyers: Buyers are more likely to invest in a business that has recently upgraded its equipment or facilities, especially if those upgrades come with immediate tax benefits. For example, a manufacturing business with new machinery will appeal to buyers looking for turnkey operations with modern infrastructure.
• Encouraging Investment Before a Sale: Business owners preparing to sell may be incentivized to invest in new equipment or facilities, knowing they can fully expense the cost. This can enhance the business’s appeal and increase its market value, leading to a better sale price through BridgePoint Business Group.

For industries like manufacturing, construction, and technology—where equipment and infrastructure are key to operations—this provision could drive a surge in business sales activity.

2. Deregulation: Streamlining Operations for Buyers and Sellers

The bill’s focus on deregulation aims to reduce administrative burdens, making it easier for businesses to operate efficiently. For business brokerages like BridgePoint, this is a game-changer in facilitating smoother transactions.

How This Impacts Business Brokerage:

• Simplified Due Diligence: Fewer regulations mean less red tape during the due diligence process, speeding up the time it takes to close a deal. Buyers can feel more confident that they won’t face unexpected compliance costs after purchasing a business.
• Increased Buyer Confidence: Deregulation lowers operational barriers, making businesses more appealing to buyers. For example, a retail business with fewer regulatory hurdles will be easier to manage post-sale, attracting more potential buyers.
• Encouraging New Entrepreneurs: Lower barriers to entry can bring more first-time buyers into the market, expanding the pool of potential clients for BridgePoint Business Group. This creates opportunities for us to connect sellers with a broader range of buyers.

While deregulation can streamline transactions, it’s important for buyers and sellers to remain aware of any critical regulations that remain in place to ensure compliance during the transition.

3. Cheap Energy: Lowering Costs and Boosting Appeal

Energy costs are a significant factor in a business’s operating expenses, especially in sectors like manufacturing, logistics, and hospitality. The bill’s focus on cheap energy aims to reduce these costs, which can make businesses more attractive to buyers.

How This Impacts Business Brokerage:

• Improved Profit Margins: Lower energy costs directly increase a business’s profitability, which is a key factor in determining its valuation. A business with reduced overhead is more likely to fetch a higher sale price.
• Attracting Cost-Conscious Buyers: Buyers are always looking for businesses with strong financials. A company with lower operating costs due to cheap energy will stand out in the market, drawing more interest from potential buyers working with BridgePoint Business Group.
• Sustainability Appeal: If the push for cheap energy includes incentives for renewable energy, businesses that adopt sustainable practices can appeal to buyers who prioritize environmental responsibility, a growing trend in the market.

For small and medium-sized businesses—our core clientele at BridgePoint—lower energy costs can significantly enhance their marketability, making them more attractive to buyers.

4. Regulatory Certainty: Building Confidence in Transactions

The promise of regulatory certainty addresses a major concern for both buyers and sellers: the unpredictability of government policies. A stable regulatory environment allows businesses to plan with confidence, which is critical during a sale.

How This Impacts Business Brokerage:

• Encouraging Seller Confidence: Business owners considering a sale are more likely to move forward if they know the regulatory landscape won’t shift dramatically post-sale. This stability can lead to more listings for BridgePoint Business Group.
• Attracting Long-Term Buyers: Buyers, especially those in industries like infrastructure or technology, value predictability. A stable regulatory environment reduces the risk of unexpected costs, making businesses more appealing to long-term investors.
• Facilitating Larger Deals: Regulatory certainty can encourage larger transactions, as buyers and sellers feel more confident committing to significant investments. This can lead to higher-value deals for our brokerage.

A predictable regulatory framework creates a win-win for both parties in a business sale, making transactions smoother and more appealing.

The Tariff Trade-Off: What It Means for Business Sales

The bill’s funding mechanism—relying on tariffs to replace the revenue lost from these tax breaks—introduces some uncertainty into the market. Tariffs, which are taxes on imported goods, can have both positive and negative effects on business sales.

• Potential Benefits: Tariffs can boost domestic production by making imported goods more expensive, which may benefit U.S.-based businesses. For example, a domestic manufacturer could become more competitive, increasing its value and appeal to buyers.
• Potential Downsides: On the other hand, tariffs can raise costs for businesses that rely on imported materials, potentially lowering their profitability and affecting their valuation. This could make some businesses less attractive to buyers, particularly in industries like retail or manufacturing with global supply chains.

At BridgePoint Business Group, we’re closely monitoring the implementation of these tariffs. For sellers, we can help assess how tariffs might impact your business’s valuation and strategize the best time to list. For buyers, we’ll identify opportunities to acquire businesses that are well-positioned to thrive under the new tariff structure.

How BridgePoint Business Group Can Help You Navigate This Opportunity

As a leading business brokerage, BridgePoint Business Group is uniquely positioned to help both buyers and sellers capitalize on the opportunities presented by this tax bill. Here’s how we can assist:

• For Sellers: We’ll help you maximize your business’s value by highlighting the benefits of full expensing, lower energy costs, and a stable regulatory environment. Our team can guide you on timing your sale to take advantage of these favorable conditions.
• For Buyers: We’ll connect you with businesses that are primed for growth under the new tax provisions. Whether you’re looking for a company with modern equipment, low operating costs, or a streamlined regulatory profile, we’ll find the right match for your investment goals.
• Market Insights: Our expertise in business valuations and market trends allows us to provide tailored advice on how tariffs and other policy changes might impact your transaction. We’ll ensure you’re making informed decisions every step of the way.

Looking Ahead: A Thriving Market for Business Transactions

The business provisions in this tax bill signal a strong opportunity for the business brokerage industry. By increasing business profitability, reducing operational costs, and providing regulatory stability, the bill creates an environment where businesses are more valuable and transactions are more appealing. While tariffs introduce some uncertainty, the overall outlook is positive for both buyers and sellers.

At BridgePoint Business Group, we’re excited to help our clients navigate this evolving landscape. Whether you’re looking to sell your business at a premium or acquire a company poised for growth, we’re here to make the process seamless and successful.

Ready to buy or sell a business? Contact BridgePoint Business Group today to explore how these tax changes can work in your favor!

BridgePoint Business Group is a premier business brokerage dedicated to facilitating the buying and selling of businesses with a focus on maximizing value for our clients. Follow our blog for the latest market insights and updates.

Mike DeVault 
Principle Broker/Owner
BridgePoint Business Group