Big Beautiful Bill: Big Business Valuation Changes

Written by: Megan Ramey, CPA, CFF, ABV

In July 2025, President Trump signed the “One Big Beautiful Bill,” a comprehensive economic package aimed at stimulating growth, cutting taxes, and promoting American-made products. While most of the headlines are about the politics, there’s a lot in this bill that could seriously impact how businesses are valued.

How the Big Beautiful Bill Influences Business Valuations

Valuations aren’t just about looking at the past; they’re all about what’s ahead. And when big legislation like the “Big Beautiful Bill” comes along, it can shake up the future in a big way. Changes to taxes, subsidies, and labor rules directly impact factors such as cash flow, financing costs, risks, and a company's growth potential.

Here’s a quick breakdown of how this new bill could affect different industries:

·       Healthcare: Cuts to Medicaid could mean fewer patients and more unpaid care, putting pressure on margins and increasing the risk around future reimbursements.

·       Energy: Clean energy loses tax support, making it tougher for renewables to compete. Meanwhile, oil and gas get a boost from faster permits and tax breaks.

·       Manufacturing: Extra tax deductions and bonus depreciation help free up cash, which is a big deal for companies with heavy equipment needs. A new auto loan interest deduction might also help U.S. carmakers.

·       Tech and R&D: The ability to fully expense R&D costs right away is great for cash flow and investment returns. Some international tax changes could also work in favor of global tech firms.

·       Consumer-Facing Businesses: Temporary tax perks tied to tips and overtime could help manage labor costs at least until they sunset in 2028, which adds a bit of future uncertainty.

·       Wealth, Real Estate, and Nonprofits: A higher estate tax exemption (now $15 million) makes wealth transfers easier. Changes to the SALT cap and charitable donation rules could shake up both real estate dynamics and nonprofit giving.

What This Means for Valuation Analysts

For valuation professionals, the Big Beautiful Bill highlights the need for flexible modeling and industry-specific adjustments. With many provisions set to expire after 2028, scenario and sensitivity analyses are essential. Cash flow forecasts should be updated to reflect changes in tax rates, labor costs, depreciation, and R&D incentives. Additionally, shifts in risk profiles may require reassessing discount rates and the cost of capital. Monitoring market reactions and regulatory developments will help ensure valuations remain accurate and defensible.

Conclusion

The Big Beautiful Bill is more than a political slogan; it represents a significant shift in the economic landscape affecting business valuations across multiple industries. Whether you’re an owner, investor, or advisor, now is the time to revisit valuation assumptions and ensure your analysis accounts for these changes.

If you want expert guidance on how the Big Beautiful Bill may impact your business valuation, contact Cogence Group today. We help businesses navigate changes like this all the time. If you’re wondering how the bill might impact your valuation, we’re here to break it down, run the numbers, and help you get ahead of whatever’s coming next!