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Tariffs—taxes imposed on imported goods—are a powerful tool in international trade policy. While they are often used to protect domestic industries or retaliate against unfair trade practices, their ripple effects extend far beyond trade balances and consumer prices.

One of the less immediately visible, but critically important consequences of tariffs, is their impact on business valuations. This is a very important issue in the current economic landscape, given the Trump Administration’s levying of tariffs on many foreign trading partners. The tariffs themselves have been uncertain, as the Administration has indicated a desire to reach firm agreements with as many nations as possible in the coming months. The ultimate deals and tariff terms remain fluid and uncertain as of the print of this article. Both the tariffs themselves, and the uncertainty surrounding them, can have a material impact on business performance and ultimate valuations.

Given the volume of international trade, the impact may be far-reaching. China, the U.S.’s largest trading partner, saw increased tariffs of between 40% and 70% after a decrease in levied tariffs after the two countries reached a 90 day pause on tariffs of up to 145%, with the goal of continuing to negotiate a long-term trade agreement. The issuance of new tariffs on major trading partners has resulted in increased volatility in both the equity and bond markets, with significant uncertainty remaining through mid-May 2025, as only a handful of tentative agreements have been reached.

6 ways tariffs can materially impact business valuations

Below are a few ways tariffs can have a material impact on business valuations.

1. Revenue and profitability disruptions

Tariffs can directly affect a company’s cost structure. For businesses that rely on imported raw materials, components, or finished goods, tariffs increase input costs. These higher costs may not be able to be fully passed on to consumers, especially in competitive markets, leading to compressed profit margins. Reduced profit margins compress valuations.

Example: A U.S.-based electronics manufacturer importing components from China may face a 25% tariff, increasing production costs and reducing net income.
Impact on Valuation: Lower profitability reduces earnings multiples and discounted cash flow (DCF) valuations, leading to a decline in overall business value.

2. Supply chain reconfiguration costs

To mitigate tariff exposure, companies often restructure their supply chains—shifting production to tariff-exempt countries or sourcing from domestic suppliers. While this may reduce long-term risk, it involves significant short-term costs, including capital expenditures, retraining, and logistical adjustments. The bottom line is that shifting supply chains and building manufacturing facilities takes a significant investment of time, planning and financial resources. These changes often have both short-term and long-term implications on value.

Impact on Valuation: These transitional costs can reduce free cash flow and increase operational risk, both of which negatively affect valuation models. Higher operational risks would likely increase a company’s cost of capital. Lower earnings would lead to lower stock prices and lower multiples.

3. Market uncertainty and investor sentiment

Tariffs introduce uncertainty and raise perceptions of risk in the business environment. Investors dislike unpredictability, especially when it may affect future earnings. Trade tensions can lead to volatile stock prices, reduced investment, and a higher discount rate applied to future cash flows. US markets have reflected this increase in volatility since the tariffs were introduced.

Impact on Valuation: Increased risk perception leads to higher required rates of return, which lowers present value in DCF models.

4. Competitive positioning

Tariffs can alter the competitive landscape. Domestic firms may benefit from reduced foreign competition, potentially increasing market share and pricing power. Conversely, firms that rely on exports may suffer from retaliatory tariffs, losing access to key markets.

Impact on Valuation: For protected industries, valuations may rise due to improved margins and growth prospects. For export-reliant firms, the opposite is often true. The takeaway here is that the ultimate effect of tariffs on valuation is going to be company/industry specific and will require diligent unpacking in valuation processes.

5. Sector-specific effects

The impact of tariffs varies significantly by industry. For example:

Automotive and electronics: Highly globalized supply chains make them vulnerable to tariffs.
Agriculture: Often targeted in retaliatory tariffs, affecting export revenues.
Steel and aluminum: May benefit from protectionist tariffs but face higher input costs if they rely on imported machinery.
Software: While digital goods aren’t necessarily tariffed, SaaS products are dependent on an interconnected system of semiconductors, cloud infrastructure and semiconductors, all of which will be effected.

6. Mergers and acquisitions (M&A)

Tariff uncertainty can delay or derail M&A activity. Buyers may demand lower prices or walk away from deals if tariff exposure is high or difficult to quantify.

Impact on Valuation: Reduced deal activity and lower acquisition premiums can depress market valuations, especially for companies seeking strategic exits.

Navigating tariff uncertainty with valuation guidance

Tariffs are more than just a trade policy tool—they are a material valuation variable. Their effects permeate through cost structures, investor sentiment, and strategic planning. For investors, analysts, and business leaders, understanding the nuanced impact of tariffs is essential for accurate valuation conclusions and sound decision-making. From a valuation perspective, it is critical for practitioners to be thoughtful in assessing both the short-term and long-term implications of changes in tariffs and understand how companies plan to mitigate the effects on their operations moving forward.

BPM’s experienced Valuation team can help navigate this uncertainty with customized, defensible valuations that account for tariff impacts across your supply chain, competitive positioning, and strategic growth plans. Our analysts provide the advanced insights needed to make informed decisions in even the most complex and volatile trade environments. Whether you’re evaluating M&A opportunities, reporting for tax purposes, or strategic planning in response to changing tariff structures, BPM delivers the comprehensive valuation experience needed to protect and maximize your business value.

Contact our Valuation team today to start the conversation about safeguarding your company’s value in an evolving global trade landscape.

Valuation serves as the backbone of any M&A transaction, helping parties determine the fair price for a potential deal. When approaching mergers and acquisitions, understanding the various valuation methods becomes crucial for making informed decisions, aligning expectations and deal strategy and negotiating effectively.

3 fundamental valuation methods used in M&A transactions

This article explores the key valuation methodologies used in M&A transactions, their applications and how BPM can support your valuation needs.

1. Market-based valuation methods

Market-based methods assess a company’s value by comparing it with similar companies or recent completed transactions in the market. These methods provide a relative measure of value and are widely used due to their market-based nature.

The “market approach” compares your company to other comparable businesses that have publicly-available data and/or have been recently acquired. Market-based methods work best when there’s sufficient data on companies of similar size, industry and financial characteristics, enabling the closest apples-to-apples comparisons possible.

Guideline companies analysis
A Guideline Companies Analysis (Comps), or Guideline Public Company Method, involves identifying publicly-traded companies in the same or similar industry with similar financial and economic characteristics. Analysts use financial metrics and multiples such as Price to Earnings (P/E), Enterprise Value to EBITDA (EV/EBITDA), Enterprise Value to Revenue (EV/Revenue) and Price to Book (P/B) ratios indicated by the Comps and apply metrics to the target company’s financials based on a comparative analysis.

For example, when valuing a software company with $10 million EBITDA, if similar public software companies trade at 15x EBITDA, the implied value of such an applied multiple would be $150 million.

Precedent transactions analysis
Precedent Transactions Analysis examines recent completed and/or announced M&A transactions involving similar companies. This method analyzes the deal multiples paid in these transactions, adjusting for differences in size, market conditions and anticipated synergies indicated by a specific deal. It gauges what acquirers have historically paid for companies similar to the target.

Using the same software company example from above, if recent software acquisitions occurred at 18x EBITDA, the implied value of such an applied multiple would be $180 million.

2. Income-based valuation methods

Income-based methods focus on the future earning potential of the target company. These methods, such as Discounted Cash Flow (DCF) analysis, estimate the present value of expected future cash flows generated by the business and directly link valuation to the underlying financial performance, relying on both historical and projected financial performance to estimate value.

Discounted cash flow analysis
The DCF method starts by forecasting the future cash flows of the business being evaluated. These cash flows represent the net amount of free cash expected to be available to interest holders for a specific period. The future cash flows are then discounted back to their present value using a discount rate, typically reflecting the weighted average cost of capital (WACC) or some other supported expected rate of required return.

For example, if a company’s projected cash flows are $12 million in Year 1, $14 million in Year 2, $16 million in Year 3, with a terminal value of $200 million at the end of Year 3, using a 10 percent discount rate would yield a total value of approximately $186.5 million (assuming mid-year convention for the annual cash flows).

There are many critical nuances to an applied DCF analysis for a complex financial instrument such as an operating company. Its application can provide the most precise and refined estimate of value. However, many critical nuances come with a DCF application and applied expertise is critical to ensure an appropriate indication of value using this method.

Capitalized cash flow analysis

This method calculates the value of a business based on a single period’s cash flow, which is typically normalized to represent sustainable estimated long-term performance. By dividing this normalized cash flow by a capitalization rate (which reflects the risk and expected growth rate), this approach determines the present value of all future estimated cash flows. This method is most applicable to interests with a consistent expected cash flow generating capacity.

For example, if a business generates a normalized annual cash flow of $5 million and has a capitalization rate of 8%, its implied value would be $62.5 million ($5 million ÷ 0.08). In the context of business valuation, this method is particularly applicable for stable businesses with predictable cash flows. It would not be appropriate to value businesses in growth or other significant transition phases.

3. Asset-based valuation methods

Asset-based valuation methods may also role in M&A, particularly for companies with significant physical assets or those undergoing liquidation. These methods may be particularly relevant for industries such as real estate, oil & gas, manufacturing, mining, and utilities, which often have substantial investments in tangible assets.

Adjusted book value method
This method assesses the company’s value based on its balance sheet, adjusting for specific assets and liabilities at market values. This often involves revaluing assets that have changes in market value that may materially diverge from depreciated/amortized book value since their purchase. The method also requires updating book liabilities to reflect more accurate adjusted figures to account for changes in liability-specific and/or market factors.

Liquidation value
The Liquidation Value method estimates the net cash that would be received if all assets were sold and liabilities settled. This value is typically lower than other valuation methods as it assumes assets are sold under distressed conditions.

Best practice spotlight: Net Working Capital benchmarking

When evaluating a company’s financial health during M&A, analyzing net working capital (NWC) against industry benchmarks provides valuable insights. By comparing a company’s performance to market indications, buyers can better understand operational efficiency and financial position relative to market participants and assess the impact on expected impacts to post-deal cash flows. Often, in M&A an NWC peg is defined in the deal negotiation and any net surplus or deficit versus the peg is adjusted to the final deal price. Proper benchmarking can help with defining the NWC peg, which can result in real cash impact to buyers and sellers.

Special considerations in M&A valuation

Synergies arise when the combined performance of two companies exceeds the sum of their separate operations. Proper assessment of potential synergies, including cost savings, revenue enhancements and operational efficiencies, is critical to analyzing the potential success of a proposed deal. Accurately estimating these synergies requires an in-depth understanding of how the two companies expect to integrate.

Expected synergies can have a material impact on the potential premium a buyer may be willing to pay to acquire a target company. Understanding the impact of control and synergistic premiums in deal negotiations can have a material impact on negotiations and ultimate deal pricing.

Choosing the right valuation approach

Along with the quantitative analytical component, the art element of M&A valuation lies in turning qualitative factors into quantitative adjustments. Valuation professionals take intangible factors like intellectual property, strong customer relationships, tradname strength, and barriers to entry and translate them into numerical impacts that help align deal expectations and terms.

The best M&A valuations will not rely solely on a single method. Instead, a combination of methods ensures the valuation reflects a triangulated indication of value, helping develop clarity on fairness and reasonableness in a pending deal. Often an indicated range can be helpful to determine potential negotiating parameters and sensitivity bands.

How BPM can help with your M&A valuation

Navigating the complex world of M&A valuations requires both technical knowledge and practical experience. At BPM, our team of valuation professionals brings decades of combined experience in helping businesses determine reasonable and fair value in the marketplace.

We offer comprehensive M&A valuation services including market multiples analysis, net working capital benchmarking, forecasting and cash flow modeling and comparable company analysis. Our professionals work closely with you to identify the most appropriate valuation methodologies for your specific situation, ensuring you have a clear understanding of your company’s (or a potential target’s) value.

“BPM helps our clients understand the key metrics and levers that impact the market value of their business or a potential target. We help companies on both the buy and sell side determine value indications that help win-win deals occur. Understanding the financial metrics and key levers, and also the critical people components, enables us to provide value in one of the most critical phases of a company’s lifecycle.”- Kemp Moyer, Partner – Advisory

Our professionals will guide you through the entire process, providing the insights and analysis you need to make informed decisions about your business’s future. To schedule a consultation with our valuation team, contact us.

When preparing to sell your business, understanding the due diligence process is crucial for achieving a successful transaction. Due diligence findings often reveal issues that can impact valuation, negotiation leverage and even derail potential deals if not addressed proactively.

“Sellers need to be aware that there are multiple due diligence workstreams – besides accounting and tax – that can be overwhelming without professional help. Securing the right strategic partner is essential for navigating this complex process successfully.” – Craig Hamm, Partner – Advisory

3 key due diligence finding to address

This article explores the most common due diligence findings that sellers encounter during the sale process and offers practical strategies to mitigate these challenges before they affect your transaction.

1. Financial statement inconsistencies

Financial statement inconsistencies rank among the most frequent due diligence findings that sellers face. Buyers scrutinize historical financial records to confirm that revenue recognition practices align with accounting standards and that earnings represent sustainable business performance.

Buyers often discover issues like aggressive revenue recognition, undisclosed related-party transactions or financial statements that differ from tax returns. These inconsistencies raise red flags about the reliability of financial information and may lead buyers to question the overall quality of earnings.

To avoid these due diligence findings, sellers should conduct internal financial audits before beginning the sale process. Reconciling financial statements with tax returns and documenting accounting methodologies helps establish credibility with potential buyers.

2. Customer concentration risks

Excessive reliance on a small number of customers frequently emerges as a significant due diligence finding. Buyers analyze customer data to evaluate the stability and predictability of future revenue streams.

When a few customers represent a substantial portion of total revenue, buyers perceive increased business risk. This due diligence finding often leads to purchase price adjustments, earnout provisions or other deal structure modifications designed to shift risk from buyer to seller.

Sellers facing customer concentration should develop strategies to diversify their customer base before entering the market. Demonstrating active efforts to reduce concentration risks can mitigate buyer concerns during due diligence.

3. Tax compliance issues

Tax compliance problems represent another common due diligence finding that creates substantial transaction risk. Buyers examine tax filings across multiple jurisdictions to identify potential liabilities that could transfer with the business acquisition. Findings that frequently surface during tax due diligence include:

Sales tax collection failures
Worker misclassification issues
Transfer pricing concerns

These findings can trigger significant purchase price reductions or escrow requirements to cover potential future tax obligations.

Sellers should conduct comprehensive tax compliance reviews before marketing their business. Addressing identified issues through voluntary disclosure programs can limit liability exposure and eliminate obstacles to closing.

How BPM can help

The due diligence findings outlined above represent common challenges that sellers face when transitioning their business. By anticipating these issues and addressing them before market entry, sellers can maintain transaction momentum and maximize value. Working with BPM provides sellers with experienced transaction advisors who understand how to identify potential due diligence issues before they become deal obstacles.

BPM offers comprehensive pre-transaction assessments that help sellers prepare for buyer scrutiny, minimize disruption during due diligence and ultimately achieve more favorable transaction terms. To learn how our transaction advisory services can help position your business for a successful sale, contact us.

Life Sciences companies today are caught in a perfect storm – racing to innovate while struggling with skyrocketing R&D costs, increasingly complex scientific challenges, and regulators watching their every move.

For organizations developing new pharmaceuticals, medical devices, or healthcare technologies, R&D tax credits represent a valuable but often underutilized financial resource.

Understanding the R&D tax credit opportunity

If your Life Sciences company has invested in developing or improving products, formulations, devices, or advancing medical and pharmaceutical technology, you may be eligible for these R&D tax credit benefits. Federal and state R&D tax credits can provide significant reductions to your tax liability.

What makes these credits particularly valuable is their flexibility. Even if your company is not currently profitable or paying cash income taxes, you can still benefit in the following ways:

Start-ups can apply R&D credits against payroll taxes up to $500,000
Credits can be carried back to earlier tax years or carried forward to future tax years
Many states will refund you the value of your credit directly
Some jurisdictions allow you to sell or transfer credits for cash

Who qualifies for Life Sciences R&D tax credits?

The R&D tax credit is broadly available to companies investing in innovation. Your Life Sciences organization may qualify if you employ or contract any of the following professionals to develop or improve your products, processes, or technologies:

Analytical and Formulations Scientists
Clinical Trial Managers and Support Specialists
QA/QC Specialists
Process/Manufacturing Chemists
Lab Technicians and Research Associates
Pharmaceutical Development Associates
Drug Safety and Discovery Specialists
Research Informatics Specialists
Regulatory Operations Associates

The key eligibility factor is not the job title but rather the nature of the work being performed. Activities must involve technical uncertainty that requires a process of experimentation to resolve.

Qualifying activities in the Life Sciences sector

Provided below are some common examples of activities performed by Life Sciences companies that qualify for the R&D credit:

Designing and formulating new drugs and therapeutics
Developing new or improved medical devices
Creating innovative drug delivery mechanisms
Establishing new testing methods and analytical procedures
Conducting clinical trials and tissue testing
Performing safety studies and pharmacovigilance
Investigating new indications for existing drugs
Improving manufacturing processes
Ensuring adherence to FDA and industry standards
Implementing automation using AI, data technology, or robotics

It is important to note that your research efforts do not have to succeed to qualify for the credit. Measurable and functional improvements to existing products or processes can be eligible as well — you do not need to be revolutionizing the entire industry to benefit.

The Orphan Drug Credit: A specialized opportunity

For companies working on treatments for rare diseases, the Orphan Drug Credit offers a tax benefit equal to 25% of qualified clinical testing expenses. This credit applies to testing performed on drugs that were granted orphan drug designation, before FDA approval.

Qualified expenses for the Orphan Drug Credit include:

Wages for researchers and clinical staff
Supplies used during clinical trials
Payments to contract research organizations
Fees to contracted individuals supporting the clinical testing process

This specialized credit can significantly enhance the financial benefits of developing treatments for conditions that affect small populations, helping to make previously unprofitable research activities more economically viable.

Doing R&D internationally – further credits could apply

Many companies will conduct some of their R&D activities overseas, and whilst these activities will not qualify for US R&D credits, other international jurisdictions have some very favorable credits, with the UK leading the way in Europe.

In the UK, HM Revenue & Customs (HMRC) encourages innovation through R&D credits, supporting and rewarding companies who look to make scientific and technological advancements in their field.

Once the activity has passed the qualifying activity test, HMRC permits costs relating to staff wages, materials, equipment, and, in certain circumstances, and subcontractors or subsidized costs, to be included when calculating the relevant tax credit to be repaid to the company as a cash receipt, or as a deduction in the Company’s taxable profits in the year.

Although the UK process has undergone some recent changes to tighten some controls and processes regarding the submission of claims, along with changes in the restriction of overseas costs for periods on or after 1 April 2024, this process can still provide valuable relief for eligible companies.

Similar to the US incentive, success in the trials, testing, and development does not have to occur to obtain the benefits. As the UK incentive is similarly focused on highlighting attempts at resolving a scientific uncertainty, Life Sciences companies should consider the potential benefits of these R&D credit benefits.

Developing a comprehensive R&D tax strategy

To maximize your company’s tax benefits, consider these strategic approaches:

Prepare contemporaneous documentation: Establish systems that record and track R&D activities performed, personnel time attributable to technical activities, and R&D expenditures as they occur rather than reconstructing information later.

Involve cross-functional teams: Collaborate across finance, tax, R&D, and operations to identify all qualifying activities and expenses.

Review vendor contracts: Analyze agreements with CROs, CMOs, and other partners to properly identify and allocate qualified research expenses.

Consider international incentives: If you conduct research globally, explore the generous R&D incentives available in other countries.

Align with your business strategy: Integrate tax planning with your overall business objectives to maximize both innovation and financial benefits.

Common misconceptions about R&D tax credits

Many Life Sciences companies miss out on valuable credits due to misunderstandings about eligibility:

“We’re not profitable yet”: Pre-revenue companies can apply R&D credits against payroll taxes.
“Our work isn’t innovative enough”: Even improvements made to existing products or processes can qualify.
“We outsource our clinical trials”: Contracted research performed in the U.S. can still qualify.
“The credit isn’t worth the effort”: For many Life Sciences companies, R&D credits represent one of their largest tax benefits.

Taking the next step with BPM

Navigating the complexities of R&D tax credits requires specialized experience. At BPM, our dedicated Life Sciences team combines industry knowledge with tax guidance to help you identify, document, and claim the full value of your research investments.

We understand the unique challenges facing Life Sciences companies and can help you develop a tailored strategy that aligns with your business objectives while maximizing your return on investment.

Ready to explore how R&D tax credits can benefit your Life Sciences company? Contact BPM today to discuss your potential tax credit opportunity. Our team is ready to help you transform your R&D investments into valuable financial benefits that can fuel your next breakthrough.

Earlier this week, the U.S. and China reached a deal to temporarily de-escalate their trade war — slashing the eye-popping tariffs imposed just last month and agreeing to a 90-day pause. While global markets rallied, the agreement brings more questions than clarity. Tariffs remain historically high and there’s no guarantee a lasting solution will follow.

In short: volatility is here to stay. And businesses are left navigating a fragile, fast-changing trade landscape — with rising costs one month and diplomatic reversals the next.

It’s a reminder that no matter what happens in Washington or Beijing, resilience must be built into your operations.

That’s why forward-looking companies are embedding sustainability into their supply chains — not just to respond to rising tariffs, but to prepare for the unexpected.

Tariffs may fall today — but volatility is the new normal

The recent U.S.–China agreement to ease tariffs offers short-term relief, but it does little to resolve the broader uncertainty facing global trade. From climate-aligned tariffs in the EU to retaliatory measures in Asia, businesses are navigating a wave of shifting rules, rising costs, and geopolitical risk.

Even temporary pauses don’t eliminate exposure. Volatility is here to stay — and that makes proactive, sustainability-driven supply chain planning more critical than ever.

These trade shifts have already created significant ripple effects:

Delays in renewable energy projects

Higher prices for solar panels, EVs, and wind infrastructure

Complex supply chain rewiring

Budget cuts to ESG initiatives, as companies absorb unexpected costs

Some businesses are turning to domestic suppliers, which may reduce transportation emissions — but could increase overall emissions if the local energy mix is more carbon-intensive.

Meanwhile, the EU’s Carbon Border Adjustment Mechanism (CBAM) is redefining the trade landscape — aligning tariffs with product-level carbon emissions. It’s a preview of a future where trade and sustainability are inseparable.

So, how are forward-looking companies responding?

Sustainability as a tariff defense strategy

Some companies are using this moment to adapt — embedding sustainability into operations not just as a values-driven initiative, but as a resilience strategy. While the examples below are illustrative, they reflect the kinds of strategic shifts we’re seeing across industries as businesses rethink sourcing, risk, and regulation.

Here’s how:

Circular supply chains reduce tariff exposure. Circular models prioritize reuse, remanufacturing, and recycling — lowering reliance on tariffed virgin materials.

Example: A consumer electronics company redesigned its warranty program to reclaim used devices. By refurbishing components in-house, they reduced reliance on imported rare earth minerals and improved margins.

Local sourcing strengthens resilience. Regionalizing the supplier base shortens lead times and limits exposure to cross-border trade barriers.

Example: A specialty food brand, once reliant on European glass packaging, switched to a U.S. supplier using recycled materials. When tariffs hit imports, they avoided a 15% cost increase and improved brand reputation.

Material innovation future-proofs operations. Sustainable alternatives to traditional inputs protect against future supply shocks and policy shifts.

Example: A furniture company replaced imported hardwoods with bamboo and recycled composites. When tariffs hit wood imports, their costs remained stable — while competitors scrambled to adjust.

Climate-aligned compliance reduces regulatory risk. As ESG and trade policy merge, companies that track emissions and align with global standards stay ahead of regulatory changes.

Example: An industrial supplier that had tracked product-level emissions was able to meet a buyer’s climate procurement requirements — winning the contract while others were disqualified.

Sustainability unlocks cost avoidance and growth. ESG investments can qualify companies for tax incentives, preferred supplier status, and access to new markets.

Example: A construction firm that invested early in low-carbon materials gained eligibility for infrastructure contracts requiring ESG compliance — winning bids competitors couldn’t pursue.

Your next move: ESG as an operational playbook

If you lead finance, legal, procurement, or supply chain functions, this is your moment.
You don’t have to overhaul everything overnight — but staying still is no longer safe.

Start here:

Map opportunities for reuse and circularity
Evaluate local sourcing through a sustainability lens
Rethink materials and their tariff/regulatory exposure
Align ESG efforts with climate and trade policy trends
Build ESG into procurement, contracts, and supplier engagement

Partner with BPM to build resilience amid trade volatility

The 90-day pause in U.S.–China tariffs is a welcome development — but it doesn’t solve the underlying uncertainty businesses face in global trade. Whether tariffs rise again or shift in scope, companies that embed sustainability into their sourcing, procurement, and operations will be best positioned to adapt.

At BPM, we support clients in exploring how sustainability can strengthen supply chain resilience. Our team helps assess risk exposure, identify sustainability integration opportunities across procurement and operations, and align sustainability efforts with evolving policy and regulatory trends. Our tax professionals also help clients evaluate eligibility for financial incentives — including applicable Inflation Reduction Act (IRA) tax credits — to support more sustainable business decisions.

Get in touch to explore how BPM can help your organization navigate trade uncertainty and move toward a more sustainable, future-ready supply chain.

IT security is a concern for organizations in any industry. While the issue is often discussed in the context of governments and private-sector companies, all businesses need to be just as vigilant when it comes to understanding the importance of data privacy and implementing solutions to keep critical information safe.

5 IT security best practices for your company

When it comes to security concerns, it’s important to think differently, which is easier said than done. We explain five areas of focus to help frame your future strategy.

1. Ensure that stakeholders understand how to update or transform their approach

For business leaders and stakeholders, the message could not be clearer: transform your thinking. This sounds like a tall order for organizations that typically do not have large technology budgets. However, it’s important to let the strategy — not budget concerns — lead the conversation. There are plenty of good security options that will not break the bank — you just need to find them.

2. Discuss modern methods of managing patching, updates, vulnerabilities and exploits

It is easy to get caught in a loop when it comes to IT, where the goal is to use every possible dollar to support bigger applications. But a big budget should not create a blind spot when it comes to data security. Make sure that your IT team or external consultant is up to speed on the latest methods hackers are using to access information and disrupt operations.

3. Assess your environment – do not just guess

We need facts to make smart decisions. Look at how your servers, networks and databases are running or being maintained, and see how they are protected. Test the process a bit from the “inside in” and the “outside in,” so you can know exactly what is going on and make sure that everything is properly configured for efficiency and security.

4. Document your current security landscape

Once you know what your security situation is, be sure to formally document it. Not only does this help with continuity, but it also prevents misunderstandings and disconnects that can create chaos — or worse. Retention is key to long-term visibility and needs to be part of any meaningful approach to security.

5. Roadmap future states and check in often

Chances are that you will find things in your current security setup that you’ll want to address. The next step is to document them so that you have a clear roadmap to get from Point A to Point B. However, that is not the end of the journey — it is just the beginning. You should have regular check-ins to ensure that you are pointing in the right direction and are meeting your interim goals.

How BPM can help with IT Security

When setting the agenda for your organization’s IT security framework, perhaps the most important question to start with is: “What is your most valuable asset?”

Is it intellectual property? A database? A tangible asset or item? Whatever your answer to that question is, that is the North Star of your IT security investment. That’s what you are working to protect — and that end goal should always be at the forefront of your work in this space. As Steven Covey, author of The 7 Habits of Highly Effective People, said, “If we all started with the end in mind, we would likely pick the best tools, processes and people — and build an easy-to-use Fort Knox.”

BPM can help your organization strengthen its IT security through better technology. Learn more about how to leverage BPM’s managed services to realize your organization’s vision.

Cost segregation studies have increased in popularity with middle market companies and small business owners who own real estate. We explore the potential benefits and risks of this tax planning tool.

What is a cost segregation study and how does it work?

Cost segregation (“cost seg”) studies are analyses of building costs for the purpose of identifying and quantifying business property eligible for accelerated depreciation for tax reporting purposes. They are essentially a tax savings and cash flow planning tool, typically utilized by businesses that acquire or construct commercial buildings and other real estate property.

Although these studies have existed for more than three decades, the passage of recent tax legislation has helped to further enhance the benefits associated with them. As a result, there has been an industry-wide surge in their popularity, especially as smaller businesses, owners of rental properties and their tax advisors become increasingly savvy about the power of this tax planning tool.

Tax legislation affecting cost segregation benefits

Tax legislation passed recently has included several provisions that have been particularly beneficial to taxpayers who invest in commercial real estate and rental properties. For example, the Protecting Americans from Tax Hikes (PATH) Act of 2015 created a new category of property, Qualified Improvement Property or “QIP,” to apply bonus depreciation eligibility to a category of property that is especially meaningful to small business owners, tenants and landlords.

Shortly thereafter, the Tax Cuts and Jobs Act (TCJA) of 2017 increased first-year bonus depreciation to 100%, but inadvertently included a technical error that made QIP ineligible for bonus depreciation. In 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act, correcting the error and making QIP eligible for 100% bonus depreciation.

Taxpayers are also realizing that cost segregation can be utilized in tandem with other tax planning strategies. For example, these studies can be completed on property acquired as part of a Sec. 1031 like-kind exchange. There are also synergies between cost seg studies and Historic Rehabilitation Tax Credits analyses that can translate into meaningful efficiencies. For newly constructed properties, taxpayers are increasingly looking to enhance the benefits of cost seg studies by simultaneously including work to secure the Sec. 179D tax deduction related to energy-efficient commercial buildings.

Evolving regulations on cost segregation

The IRS has taken notice of the increasing popularity of cost seg studies and is beginning to issue more guardrails around their use. It initially issued its first Audit Techniques Guide (ATG) for cost segregation almost 20 years ago in response to the increased application of these studies and to also acknowledge the seminal Healthcare Corporation of America (HCA) v. (IRS) Commissioner case. At the time, the published ATG represented a formal acknowledgment of the legitimacy of cost seg while simultaneously laying the groundwork for future rules for the studies.

In its most recent 2022 update, in response to the expansion and changes in this practice area, the IRS put taxpayers on notice that they should expect added scrutiny when it comes to cost segregation studies. Additionally, the IRS has established a “more likely than not” standard as it applies to tax positions relied upon in these studies – suggesting that consultants issuing these studies and CPAs signing off on the tax positions may be subject to “preparer” penalties if their work does not measure up.

Navigating cost segregation with professional support

As cost segregation continues to grow in popularity among real estate owners and investors, the IRS is responding with increased scrutiny and evolving regulations. To maximize benefits while managing potential risks, working with knowledgeable professionals is essential.

BPM’s team can advise on the use of cost segregation studies and help mitigate future risks as new rules related to this planning tool are released by the IRS. With experienced guidance, real estate owners can confidently explore how cost segregation might enhance their tax strategy.

Ready to optimize your real estate tax strategy?

Contact BPM today to learn how our professionals can help you navigate the complexities of cost segregation for your property investments.

Business leaders are constantly seeking new ways to gain competitive advantages while reducing operational costs. NetSuite, a leading cloud-based ERP solution, has responded to this challenge by weaving artificial intelligence throughout its platform, helping businesses work smarter rather than harder.

With smart automation and machine learning capabilities, organizations can now streamline routine tasks and uncover valuable insights hidden within their data. This article explores how AI is revolutionizing NetSuite’s functionality and delivering tangible benefits to organizations of all sizes.

In the following sections, we will examine the key AI features in NetSuite, their impact on various business functions and how partnering with the right implementation team can maximize your AI investment.

Built-in AI capabilities driving productivity

NetSuite’s approach to AI stands out in the enterprise software market through its embedded integration strategy. The AI capabilities in NetSuite use data and automation from the suite to handle repetitive tasks, which helps increase accuracy, speed up work and free up employees to focus on other work.

Rather than offering AI as a separate module or add-on, NetSuite has woven intelligent features throughout the platform, making advanced technology accessible without requiring specialized skills. This approach delivers immediate value to businesses that might otherwise find AI implementation costly or complex.

Key AI features revolutionizing business processes

NetSuite’s recent releases have introduced several groundbreaking AI features designed to transform everyday business tasks.

Text Enhance

Text Enhance, a generative AI tool, automates content creation for customer service, HR and marketing, improving productivity and consistency. This tool helps draft everything from product descriptions to customer communications, significantly reducing the time needed for content creation.

Bill Capture

Another standout feature is Bill Capture, which uses AI to quickly extract and input data from scanned invoices into NetSuite, further streamlining operations by verifying invoices against purchase orders and delivery documents. This automation dramatically reduces manual data entry and minimizes errors in financial workflows.

Intelligent Performance Management (IPM)

For finance teams, IPM for NetSuite Planning and Budgeting leverages AI for continuous monitoring and analysis, offering real-time insights and improving forecasting accuracy. This capability helps businesses make more informed decisions based on data-driven insights rather than intuition.

AI across business functions

The impact of NetSuite’s AI capabilities extends across multiple business functions. In financial management, AI-powered tools automate invoice processing, detect anomalies in financial data and recommend corrective actions.

NetSuite Financial Exception Management helps to increase efficiency and mitigate risk by continuously scanning financial data to identify and flag anomalies and recommends corrective actions.
For sales and marketing teams, AI enhances customer relationship management by analyzing customer behavior patterns and providing insights that help personalize communications and improve engagement.
Supply chain operations benefit from AI through improved inventory forecasting and automated location assignment for fulfillment.
Fulfillment automation can now automate multi-location fulfillment based on warehouse proximity, ranking or other rules input by the user.

Future of AI in NetSuite

NetSuite continues to expand its AI capabilities with each release. The 2025.1 release introduces domain-specific GenAI assistants, a new search tool to answer questions about NetSuite and tools that automatically write reports and analysis. These innovations will further enhance productivity and decision-making across organizations.

Additionally, SuiteScript developers can now access large language models (LLMs) powered by Oracle Cloud Infrastructure (OCI) Generative AI services, allowing for integration of generative AI models into NetSuite customizations and SuiteApps. This opens new possibilities for businesses to tailor AI functionality to their specific needs.

Maximizing your NetSuite AI investment

Implementing and optimizing NetSuite’s AI capabilities requires strategic planning and technical knowledge. BPM brings deep understanding of both NetSuite’s platform and AI technologies to help your organization maximize the return on your investment.

Our team works closely with you to identify the most impactful AI applications for your specific business challenges, ensure data quality for optimal AI performance and develop implementation strategies that align with your business goals. Ready to harness the power of AI in NetSuite? For a consultation to discover how our tailored approach can transform your business operations through intelligent automation and data-driven insights, contact us.

When it comes to securing your financial future, both financial planning and estate planning can be essential. While these terms are often used interchangeably, they serve distinct yet complementary purposes in your overall wealth management strategy.

At BPM, we understand that navigating these two areas can seem overwhelming. That’s why we’re breaking down the key differences between estate and financial planning, while showing you how they work together to protect your assets now and for generations to come.

Understanding financial planning: Building wealth during your lifetime

Financial planning is essentially a strategic roadmap for managing your money throughout your life. It’s about understanding where you are today financially and creating a clear path to reach your short and long-term goals.

A comprehensive financial plan typically includes:

Budgeting strategies to manage everyday expenses and save effectively
Investment planning tailored to your risk tolerance and time horizon
Tax planning techniques to minimize your tax burden
Insurance planning to protect against unexpected financial setbacks
Retirement planning that allows you to maintain your lifestyle after you stop working

For example, if you’re dreaming of purchasing a home in the next few years, a well-structured financial plan can help you get there. Creating a comprehensive financial plan helps to assess your current situation, develop a savings strategy for your down payment, and optimize your credit profile to secure favorable mortgage terms.

Financial planning is about making your money work for you during your lifetime, helping you build wealth while maintaining financial security along the way.

Understanding estate planning: Preserving wealth beyond your lifetime

While financial planning focuses on growing and managing your wealth during your life, estate planning addresses what happens to your assets after you’re gone. It’s about ensuring your hard-earned wealth benefits the people and causes you care about most.

Estate planning isn’t just for the ultra-wealthy. Everyone has an “estate” – whether it’s a family home, retirement accounts, investments, or personal possessions with sentimental value.

A well-crafted estate plan typically includes:

A will that outlines how you want your assets distributed
Powers of attorney that designate someone to make financial and medical decisions if you’re unable to
Trusts that can help avoid probate and potentially reduce estate taxes
Healthcare directives that specify your wishes for end-of-life care
Guardianship designations for minor children

Beyond simply distributing assets, estate planning helps minimize taxes, protect assets from potential creditors, and create a smooth transition of wealth—especially important if you own a business or have complex family dynamics.

Why you can’t have one without the other

The debate between estate planning vs. financial planning misses an important point: these strategies work best when implemented together as part of a holistic approach to wealth management.

Think of financial planning as building and growing your wealth, while estate planning helps ensure that wealth is preserved and distributed according to your wishes. They’re two sides of the same coin.

Here’s how they complement each other:

Tax efficiency: Financial planning helps minimize your tax burden during your lifetime, while estate planning works to reduce potential estate and inheritance taxes after you’re gone.

Asset protection: Financial planning helps you build assets, while estate planning helps shield those assets from potential creditors or legal claims.

Business succession: If you own a business, financial planning helps you grow and manage the business, while estate planning helps ensure a smooth transition of ownership.

Family security: Financial planning helps provide for your family while you’re alive, and estate planning is designed to continue that security after you’re no longer here.

When do you need to start planning?

Many people put off financial and estate planning, believing it’s something to worry about later in life. However, certain life events should trigger you to revisit both your financial and estate plans:

Receiving a significant inheritance or selling a business
Getting a substantial promotion or increase in income
Approaching retirement
Marriage, divorce, or having children
Purchasing major assets like a home
Changes in tax laws that may affect your wealth

The truth is, it’s never too early to start planning. Young professionals can benefit from basic financial and estate planning just as much as those approaching retirement. The sooner you start, the more options you’ll have to grow and protect your wealth.

How BPM can help with your integrated planning needs

At BPM, we believe in taking a holistic approach to your financial life. Our team of experienced advisors can help you develop both financial and estate plans that work together seamlessly.

We understand that every client’s situation is unique. Whether you’re just starting your career, growing your family, approaching retirement, or thinking about your legacy, we can create customized strategies that align with your specific goals and circumstances.

Our integrated approach is designed to manage your wealth effectively during your lifetime while creating a thoughtful plan for how it will be preserved and distributed according to your wishes after you’re gone.

Ready to start securing your financial future?

Don’t wait until a major life event forces you to think about your financial and estate plans. Being proactive now can save you and your loved ones significant stress and potential financial loss in the future.

Contact BPM today to schedule a consultation with one of our advisors. We’ll help you create a comprehensive strategy that addresses both your financial planning and estate planning needs.

Let us help you build, protect, and pass on your wealth in the most effective way possible. Your future self (and your loved ones) will thank you.

Securities offered through Valmark Securities, Inc. Member FINRA, SIPC | Investment Advisory services offered through BPM Wealth Advisors, LLC and/or Valmark Advisers, Inc. a SEC Registered Investment Advisor. BPM LLP and BPM Wealth Advisors, LLC are entities separate from Valmark Securities, Inc. and Valmark Advisers, Inc.

Recent data shows that roughly two-thirds of Americans are unsure about their retirement readiness. While this statistic is concerning, proper financial planning can help bridge the gap between uncertainty and confidence in your retirement journey.

If You Fail to Plan, You Are Planning to Fail” – Benjamin Franklin

Let’s explore the key elements of creating a robust retirement plan that can help secure your financial future.

Understanding your retirement needs

Planning for retirement requires a clear understanding of your future financial needs. Most financial professionals suggest aiming to replace 70-85% of your pre-retirement income to maintain your standard of living. This includes accounting for essential expenses like housing and utilities, as well as discretionary spending for the lifestyle you envision.

Your retirement budget should factor in both predictable costs and potential variables. Essential expenses will include housing, utilities, and day-to-day living costs, while discretionary spending might cover travel, hobbies, and entertainment. It’s also crucial to consider healthcare costs, which typically increase as you age, and maintain emergency funds for unexpected expenses. The tax implications of different retirement income sources will also play a significant role in your planning.

Building your retirement income strategy

A successful retirement plan typically draws from multiple income sources, creating a diversified income stream that can help ensure financial stability. Social Security benefits form a foundation for most retirees— depending on your income level during your working years, Social Security benefits may replace 40% of an annual worker’s income. But understanding when to claim these benefits is crucial – the longer you wait (up to age 70), the higher your monthly payments will be.

Employer-sponsored retirement plans like 401(k)s and individual retirement accounts (IRAs) often form the backbone of retirement savings. These accounts offer tax advantages and, in many cases, employer matching contributions that can significantly boost your retirement savings. Personal savings and investments can provide additional flexibility, while those with pension benefits need to carefully consider their options for maximizing this guaranteed income source.

7 key steps in retirement planning

Creating a reliable retirement strategy requires a systematic approach that addresses every aspect of your financial future. By breaking down the planning process into manageable steps, you can build a comprehensive plan that evolves with your needs. Here’s how to get started:

1. Assess your current financial situation

Before you can plan for tomorrow, you need a clear picture of where you stand today. Begin by taking a comprehensive inventory of your financial life, including all retirement accounts, personal savings, investments, expected Social Security benefits, and current debts.

2. Define your retirement goals

Your retirement plan should reflect your personal vision for the future. Consider not just when you want to retire, but what kind of lifestyle you want to maintain, where you plan to live, and whether you might want to continue working part-time.

3. Calculate expected retirement expenses

Understanding your future financial needs is crucial for effective planning. Start with your current monthly expenses as a baseline, then adjust for anticipated lifestyle changes, healthcare costs, and inflation over time. For many, this may also include the cost of caring for a loved one.

4. Evaluate your retirement savings

Once you’ve defined your goals and expected expenses, it’s time to determine if your current savings strategy will get you there. Review your retirement account balances, savings rate, savings type (pre-tax vs. after tax), and whether you’re taking full advantage of employer matching programs. You should also evaluate how your portfolio is allocated, and whether your current allocation is suitable for your risk tolerance and time horizon.

5. Develop a tax-efficient withdrawal strategy

Smart tax planning now can help your retirement savings last longer. Create a coordinated withdrawal strategy that considers the tax implications of different account types – from tax-deferred 401(k)s to tax-free Roth IRAs and taxable investment accounts.

6. Create a debt management plan

Entering retirement with minimal debt gives you more flexibility and security. Focus on paying down high-interest debt first, then develop a strategy for handling longer-term obligations like mortgages.

7. Establish regular review schedule

Your retirement plan isn’t a static document – it should evolve as your life changes. Schedule annual reviews of your plan and make adjustments following major life events or changes in your financial situation.

Remember, while these steps provide a framework for retirement planning, each person’s journey is unique. At BPM, we can help you navigate this process and create a personalized strategy that aligns with your specific goals and circumstances.

Working with financial professionals

Professional guidance can provide invaluable insights and help ensure your retirement planning addresses all crucial aspects of your financial future. A qualified advisor can help develop a comprehensive retirement strategy that aligns with your goals and circumstances. This includes optimizing your investment portfolio, navigating tax implications, and adjusting your plan as circumstances change.

Your advisor can also provide objective advice during market volatility, helping you maintain a long-term perspective and avoid emotional decision-making that could impact your retirement security. Regular reviews with your advisor ensure your plan remains on track and adapts to changing market conditions and personal circumstances.

Taking action with BPM

Regardless of your age or career stage, the time to start planning for retirement is now. Building a secure retirement requires consistent effort and regular review of your progress. Start by maximizing contributions to retirement accounts where possible and create a realistic budget that balances current needs with future goals.

You should review and adjust your retirement strategy regularly to ensure it continues to align with your objectives. This includes addressing any gaps in your retirement savings and adjusting your investment strategy as needed. Remember that retirement planning isn’t just about reaching a certain age – it’s about ensuring your finances can support your desired lifestyle after you stop working.

By taking a proactive approach to retirement planning today, you can work toward the confident, secure retirement you envision. At BPM, our financial advisory team is ready to help you create and implement a personalized strategy for your retirement future. Contact us to begin building your path to a confident retirement.