How Trump’s Tax Code Changes Will Accelerate Business Exits in 2025 -

In my view, Trump will significantly accelerate business exits over the next four years through a plethora of tax, deregulation, and trade policy changes. Here is a brief summary of what, I think, you can expect:

1.?????? Tax Policy:

As he did in 2016, President Trump intends to cut taxes on capital gains and corporate income. Lower taxes benefit business owners looking to exit their businesses by allowing them to keep a higher share of the sale proceeds. Additionally, Mr. Trump has indicated that he will repeal the increase in estate taxes. Repealing higher estate taxes would significantly influence future exit planning strategies and wealth transfer decisions, but many business owners might decide to get out while the getting’s good.

2.?????? Deregulation:

Donald Trump’s focus on deregulation could, moreover, reduce compliance costs for small and medium businesses, making them more attractive to potential buyers. Reduced environmental and labor regulations would also simplify exit planning for businesses in industries affected by ESG requirements but also decrease the appeal to buyers of these businesses who prioritize sustainability.

3.?????? Cross-Border Trade:

Based on Trump’s statements about trade during his campaign, it is likely that President Trump will reintroduce tariffs and prioritize American-made goods, which could affect businesses with global ties or supply chains. These policies will impact valuations, particularly for companies reliant on imports or exports, as they could face increased costs or market access issues, both of which are crucial in exit valuations and planning.? The reshoring of manufacturing, on the other hand, will create significant business opportunities for American businesses.

4.?????? Less Market Volatility and Economic Uncertainty:

Lastly, Trump’s policies could increase market confidence and lead to lower interest rates, which are critical factors for exit planning. Market conditions directly affect valuations and timing decisions for exits, and Trump’s approach should reduce uncertainty, which would increase the number of business exits in many industries given the estimated $5 trillion dollars currently held by investors interested in acquiring privately held businesses.

In summary, I believe Trump’s policies will result in a more favorable environment overall for business exits, especially where tax benefits are concerned, but advisors and business owners will need to remain agile in responding to regulatory changes, trade policy shifts, and market changes.

?About Greater Prairie Business Consulting, Inc.:

Greater Prairie Business Consulting, Inc. is an award-winning, national consulting practice serving entrepreneurs, small to mid-sized privately held and family-owned businesses and middle market companies of any type with revenues between $1 million and $250 million. The firm helps small, mid-sized and middle market companies maximize their performance and exit.

Greater Prairie Business Consulting, Inc. can be reached by calling 1-800-828-7585 or emailing [email protected] .

?About the Author:

James J. Talerico, Jr. is an award-winning author, speaker, and a nationally recognized small to mid-sized (SMB) business expert.

With more than thirty- (30) years of diversified business experience, Jim has a solid track record and an A+ BBB rating helping thousands of business owners across the US and in Canada tackle tough business problems to improve the performance of their organizations.

His client success stories have been highlighted in the?Wall St. Journal,?Dallas Business Journal,?Chicago Daily Herald, and on?MSNBC’s Your Business. He was named “Texas Business Consulting CEO of the Year,” by?CEO Today Magazine, identified as a?“Top 10 Management Consulting Entrepreneur to Watch in 2023” by Entrepreneur Magazine, was listed among the?“10 Most Visionary Companies to Watch in 2023” by Inc. Magazine, and has also been ranked among the?“Top Small Business Consultants”?followed on?Twitter.

For more than half a decade, Jim was a regular guest on “The Price of Business,” a nationally syndicated radio program on Bloomberg Talk Radio and has also appeared as a subject matter expert on many FOX Radio interviews. He is a regular contributor to several blog sites and has frequently been quoted in publications like the New York Times, Dallas Morning News, Philadelphia Inquirer, The Entrepreneur’s Review, and on INC.com , in addition to numerous, other industry publications, radio broadcasts, business books, and Internet media.

Jim received a Gold?“Stevie Award”?for?“Thought Leader of the Year,”?a Gold?“Stevie Award”?for?“Media Hero of the Year During Covid”?and a Bronze?“Stevie Award”?for?“Best Entrepreneur”?in the Category of?“Business and Professional Services”?at the?American Business Awards ??in New York City. The competition received more than 3,700 nominations and is the premier accolade for business excellence in the US honoring organizations of all sizes and industries. Jim also received an?“Outstanding Leadership Award”?at the Money 2.0 Conference for his contributions to the financial services industry.

Jim is the author of “8 Steps to Becoming an ETHICS FOCUSED ORGANIZATION,”? a small business certification program that utilizes a unique eight – (8) step approach for strengthening ethics in any organization. The certification program won the Better Business Bureau’s “Torch Award for Ethics” for the North – Central Texas Region, the International Better Business Bureau’s “ Torch Award for Ethics,” and a Gold “Stevie Award” for “Ethics in Sales” at the International Sales & Customer Service Stevie Awards ?. Participants who complete this certification program are eligible to receive eight – (8) continuing education units from the University of Texas’ Division of Enterprise Development.

Jim received his Certified Business Exit Consultant (CBEC) ? designation from The International Exit Planning Association (IEPA) to help entrepreneurs, small business owners, family businesses, and middle market companies maximize their business exit, and he received his certification in succession planning from the ASPE.

Jim is also a Certified Management Consultant (CMC) ? and an active member of the Institute of Management Consultants.

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