Assuming tax structure is changed following the election to match the Democratic Party's campaign promises, there will need to be a significant increase in valuation to achieve the same proceeds business owners would get in 2020.
July 23,2020
Valuation Impact: Proposed Post-Election Tax Changes
If the tax structure is changed to match the Democratic Party’s campaign promises, achieving similar after-tax proceeds will require higher transaction multiples–for example, to get the same after-tax transaction proceeds for a California-based business in 2020 at 7.00x EBITDA, business owners would need to sell the same business for 10.2x EBITDA.
