November Insights: How Tax Changes and Buyer Behavior Impact Business Value

Dear Readers,

Welcome to the November edition of The First Choice Triangle Tribune from First Choice Business Brokers of the Triangle. Each month, we share timely insights to help North Carolina business owners make informed decisions about growth, exit planning, and long-term value.


This month, we’re looking at three key developments shaping business decisions right now:


  • How business owner confidence is holding up amid economic pressure
  • The 2025 tax changes every NC owner should plan for
  • What shifting consumer behavior means for your company’s value



Business Owner Confidence Remains High but Pressures Are Real


Triangle business owners are entering the final quarter of 2025 with cautious optimism. Surveys show that 84% of small and mid-sized business owners feel positive about their outlook, the highest in recent years. However, nearly half cite inflation and rising costs as their main concern.


Locally, North Carolina firms report steady operations but tighter margins and ongoing labor challenges. The Richmond Fed’s survey shows that business conditions across the Carolinas cooled slightly this fall, even as companies plan modest wage increases and expect hiring to stabilize.


For owners thinking about selling, this creates a mixed picture. Buyer demand remains strong, but inflation can trim EBITDA and lower valuations. The takeaway: if your business is performing well, it’s a good time to explore valuation and exit options before cost pressures start eroding margins.


Pro tip: Review your year-end financials early. Buyers and lenders want to see updated performance metrics before the new year begins.
A clean, verified set of 2025 financials helps strengthen your position if you decide to sell in early 2026.


2025 Tax Changes: What NC Owners Should Prepare For


Several new tax adjustments will take effect in 2025, and they could influence both your after-tax income and the timing of a potential sale:


  • Federal SALT cap: Increasing from $10,000 to $40,000 for individuals through 2029
  • Pass-through (QBI) deduction: The 20% deduction for LLCs and S-corps is now permanent
  • NC corporate tax rate: Drops from 2.5% to 2.25%, with a further reduction to 2.0% in 2026
  • NC franchise tax: Slight increase for C-corps, but small businesses will typically pay a $200–$500 minimum
  • Pass-through entity (PTE) election: Now open to partnerships and S-corps, helping owners manage federal SALT limits

For business owners, this combination of lower corporate tax rates and expanded deductions can improve net income and post-sale proceeds. If you’re planning an exit in the next 12–18 months, review these changes with your CPA. Timing your sale around these rules could increase what you keep after closing.

Stay Ahead: Subscribe to The First Choice Triangle Tribune for monthly updates on state and federal policies
that impact North Carolina business owners. We keep you informed so you can plan confidently.


Consumer Behavior Is Shifting and It Affects Business Value


North Carolina’s retail and service sectors continue to expand, but growth is slowing. Retail sales rose about 2.6% year over year in early 2025, down from previous highs. Raleigh’s retail market remains tight with low vacancy, while Durham’s vacancy ticked up slightly.


For owners, this signals a shift: customers are becoming more selective and price-conscious. When buyers evaluate a business, they now look closely at customer loyalty, repeat sales, and diversification. Metrics like Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV) are increasingly common in due diligence.


If you’re planning a sale, strengthen your recurring revenue streams, retain long-term customers, and document your retention rates. A stable, repeat-driven customer base will help your business stand out and command stronger offers.

Action Tip: Audit your customer data before year-end. Identify which clients bring consistent revenue and which ones
depend heavily on discounts or promotions. That insight helps you strengthen profitability and improve buyer appeal.

Click Here for a Confidential Business Evaluation


Featured Listings of the Month


Dual Craft Beer & Wine Retail Lounges - Loyal Local and Military Customers

Dual Craft Beer & Wine Retail Lounges - Loyal Local and Military Customers


Well-established retail business, located in central North Carolina, focusing on craft and curated alcoholic and non-alcoholic beverages. Multiple locations, each with a distinct and stable customer base, and each surrounded by a population with disposable income. Retail nature of the company allows for flexibility and diversification of product line in the shifting beverage marketplace. Strong brand equity, prime real-estate visibility, a focus on customer service and employee training, coupled with double-digit population growth in the surrounding community, have led to six-figure net profits from a semi-absent owner business.

Established Weight Loss & Body Toning Center – Profitable


Turnkey Body Transformation & Weight Loss Studio in Growing NC Suburb Located in the heart of one of North Carolina’s fastest-growing suburban communities, this boutique body contouring and weight loss center offers a unique mix of non-invasive treatments, nutritional coaching, and personalized client care that sets it apart from larger, impersonal chains. With an established local brand, proprietary programs, and a loyal client base, the business is ready for immediate transition and continued growth.

High Margin Environmental Testing Lab - SBA


This niche certification lab provides opacity and particulate matter testing services, along with specialized test filters, to major industrial clients across the U.S. and internationally. Serving utilities, refineries, pulp and paper mills, and environmental consulting firms, the business plays a vital role in regulatory compliance and emissions monitoring. With over four decades of successful operation, it boasts a loyal, diversified client base, high margins, low overhead, and minimal competition. It operates from a home office with a single owner-operator and one employee, requires little/no travel, and includes proprietary processes and strong repeat business. 
View All Listings


Final Thought


Confidence remains strong among North Carolina business owners, but success in 2025/26 will depend on careful planning around costs, taxes, and customer retention. The good news: buyer interest is steady, and well-run companies continue to command solid offers.


Thank you for reading this month’s First Choice Triangle Tribune. Until the next issue, we’re here to help you plan your strategy, evaluate your options, and build lasting value for your business.