How Will the “Big, Beautiful Bill Act” Impact Your Business Sale?

About the Episode

Have you been wondering what the “Big Beautiful Bill Act” means for the sale of your business? Join returning guest Bill Weirsema as we discuss the changes that are designed to make M&A transactions more attractive, reduce tax burdens for both buyers and sellers, and stimulate more activity in the market.

It’s great news for M&A. Valuations will rise. There’s going to be a renewed confidence, because there’s going to be an improved ROI for buyers after tax.

Bill Wiersema

What You’ll Learn

• Details of the Bill and Its Impact: The bill renews favorable provisions and incentivizes the exemption on gain on sale (QSBS) and includes a 100% write-off of capital expenditures.
• Tax Rates and Exemptions: Individual tax rates remain at a maximum of 37%, and the qualified business income deduction (QBID) at 20%. The estate tax exemption is now $15 million per individual, providing significant tax savings for many.
• Bonus Depreciation and Section 179: Bonus depreciation now includes qualified production property and is extended to 100% for new or used machinery and equipment. Section 179 allows a write-off of up to $2.5 million of the first $4 million in assets, but bonus depreciation is generally more beneficial.
• Interest Deductions and Pass-Through Entities: The bill reinstates the deduction limit on interest to 30% of EBITDA. The pass-through entity tax (PTE) election is preserved, allowing companies to deduct state taxes at the entity level.
• Qualified Small Business Stock (QSBS): The QSBS provision allows for a potential 100% tax-free exit if certain conditions are met.

Topics Covered

Want More? Related Resources:

• Allocation of Purchase Price & Taxes When Selling a Business
• EBITDA | Definition, Formula & Example – A Complete Guide
• Qualified Small Business Stock – Tax Benefit That Could Pay Millions

Meet Our Guest

Bill Wiersema

CPA with Miller, Cooper & Co. | Chicago, Illinois

Bill Wiersema is a CPA with Miller, Cooper & Co., specializing in M&A financial due diligence. He is also the author of several books on finance. He has assisted middle-market companies, private equity groups, financial institutions, and international entities across Asia, Europe, and Latin America. Bill has extensive experience assisting sellers across diverse industries in preparing for sale, conducting due diligence, creating business plans and projections, assisting in negotiations with financial institutions, and advising clients on post-acquisition financial issues.

LinkedIn: https://www.linkedin.com/in/billwiersema/