How Will the New Bill Impact the Valuation Multiples?

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July 11, 2025

by a searcher from Hult International Business School in Cambridge, MA, USA

I'm looking for information on how the new Bill will impact the valuation Multiples.
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Reply by an intermediary
from Harvard University in Boston, MA, USA
Up we go. Expect demand (and multiples) to further increase as buyers and sellers alike look to take advantage of lower corporate tax rates and more favorable deductions. BVR, AICPA, the Tax Foundation, and Journal of Accountancy all concur afaik. DCF and WACC should be revisited.
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
My answers are for SBA changes and for OBBBA. 1) SBA: I do not expect major changes in multiple###-###-#### changes primarily impact deals with partial ownership change (PCO). PCO deals are few and PCO did not exists prior to 2 years ago. 2) OBBBA: I do not see any material changes to multiples for small or large deals. The changes in 2017 were more significant than OBBBA changes, and we did not see material impact. However, OBBBA will impact multiples if interest rates come down or economy goes South or picks up. If there is impact, it will be small and short-lived. I have seen much bigger changes in my 35+ years in M&A, and no database proven correlation of multiples to DC policies. Afterall, value is NPV of future CF, and such NPV includes PV of TV which accounts for a large portion of NPV ,and TV assumes CF till infinity.
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