On July 4, 2025, the president signed the One Big Beautiful Bill Act (OBBBA) into law. This tax and spending bill contains many new and expanded rules that could soon change the business climate and affect M&A a bit further down the line.
To benefit the Class VI Community, we invited our sponsor CBIZ to break down this pressing issue. At a recent event in our Denver office, CBIZ representatives delivered insights into provisions relevant to businesses—not to mention the headline-grabbing items relating to individual taxpayers.
The video is worth watching in full, but here we want to highlight the three OBBBA sections that could have the biggest impact on M&A in the near term.
Bonus depreciation
Now might be the time to invest in any machinery or equipment you’ve been eyeing: these and other short-term assets are now 100% deductible in the year a business buys them. The deduction even applies retroactively to assets acquired on or after January 20, 2025.
This clause might encourage investment in operational technology by reducing the cost of added infrastructure. Business buyers are always looking for companies with efficient operations, so the bonus depreciation provision could have a second-order boosting effect on M&A.
Qualified production property deduction
Another key OBBBA deduction is for qualified production property, defined as a place in the U.S. where your company produces, manufactures, or refines materials. Unlike the bonus depreciation, this item has an end date: you must buy or build the qualified property between January 20, 2025 and December 31, 2028, and its production operation must launch before January 1, 2031.
This deduction is a clear attempt to promote U.S.-based manufacturing. Combined with the still-up-in-the-air tariff regime on imported goods and materials, it’s possible that some U.S. manufacturers could make the math work to shift production onshore.
Ultimately, M&A investors will find the most cost-efficient firms most attractive, whether that means they produce at relatively low cost in the U.S. or find enough carve-outs to make overseas production profitable.
Research and experimentation
Businesses now have more incentive to spend on qualified R&E, thanks to the bill’s immediate deduction option. Companies previously had to wait for five-year amortization before deducting their R&E expenses. Smaller firms with less than $31 million in receipts can even amend their filings for tax years 2022–2024 to account for the deduction.
The R&E deduction might save companies money in a variety of industries, thus improving their financial health and making them more attractive acquisition targets. This may be especially true in SaaS, because software development counts as one of the deductible R&E expenses.
One big wild uncertain year
The OBBBA runs to hundreds of pages, so analysts are still combing through it and thinking about the implications for the economy. It’s possible the legislation could have a stimulating effect on M&A that would counteract some of the cooling brought about by the tariff chaos.
Entrepreneurs should study the bill’s provisions seeking advantageous strategies for their business model and industry. When everything is changing, those who react most effectively can improve their growth prospects and pull ahead of the competition.
Be sure to watch the video for a taste of what Class VI Community members enjoy regularly!