An Estate Planning Opportunity for Owners of Companies Impacted by Recent Events
March 6, 2025 – The recent efforts by the Department of Government Efficiency (DOGE), new tariffs going into effect, and the looming March 14th deadline to avoid a U.S. government shutdown have significantly impacted companies operating in certain segments of the market. For the owners of those companies feeling the brunt of these recent developments, there’s an opportunity to take advantage of the historically high lifetime estate tax exemption amounts while the valuations of their companies are temporarily depressed.
Effective January 1, 2025, the lifetime estate tax exemption amount increased to $13.99 million for individuals and to $27.98 million for married couples. These exemption amounts are the highest they’ve ever been, however, under current law, on January 1, 2026, the amounts are scheduled to be cut in half.
Since the GOP holds a majority in both the House and the Senate, there’s a strong possibility the current tax provisions will be extended beyond 2025. However, given the cacophony of recent events and next week’s impending deadline to avoid a government shutdown, continued uncertainty is likely.
If legislative action is not taken by Congress, the reduction in the lifetime estate tax exemption would mean that individuals with estates exceeding the thresholds would incur significant estate tax liabilities and reduce the amount of assets they can pass on to their heirs.
Therefore, given these potential changes, time is of the essence to begin estate planning. Estate and gift advisors typically suggest setting up trusts and gifting assets to the trusts to minimize estate tax liabilities in the future. For owners of privately held companies, gifting equity to a trust is almost always advised. And for owners of companies impacted by the recent developments in the market, it’s a rare opportunity to take advantage of the temporarily depressed valuations to shield even more equity under the historically high lifetime exemption amounts.
The McLean Group can provide you with an independent, IRS-compliant valuation to support your estate planning needs. The McLean Group’s dedicated valuation advisory services practice is one of the largest and most respected valuation practices in the Mid-Atlantic region. Please contact us to discuss how we can best support your objectives.
Contact Ryan Berry (rberry@mcleanllc.com) or Scott Sievers (ssievers@mcleanllc.com) today to discuss this or other valuation topics and services that can help you and your firm achieve your missions and goals.
About The McLean Group
For over 30 years, The McLean Group has been providing investment banking and financial services offerings focused on the Defense, Government & Intelligence (DGI), Security, Critical Infrastructure, Maritime, Facility Services, Unmanned Systems, and Public Safety markets. Our 60+ professionals bring deep industry experience and relentless execution to every client engagement. We provide solutions that blend financial creativity with operational expertise. Whether we are providing transaction advisory, valuation opinions, or growth capital, our services are unmatched in these core markets. Learn more at www.McLeanLLC.com.
RECENT NEWS
Q3 2026 Mergers & Acquisitions Market Update
The McLean Group’s Q3 2026 M&A Insider Report tracks 137 transactions across Defense, Government & Intelligence; Physical & Cyber Security; Critical Infrastructure; and Maritime Transport & Facilities, down from 167 in Q2. Deal activity slowed as the Federal Reserve raised its benchmark rate to 3.75%–4.00%, its first hike in more than three years, and the 10-year Treasury yield passed 5%. Large strategic deals continued, led by GE Aerospace’s pending $11.75B acquisition of Consolidated Precision Products, while Congress funded the government through December 11 under a continuing resolution, deferring the FY2027 appropriations fight until after the midterms. […]
SBA 7(a) Change-of-Ownership Loans Now Require an Independent Quality of Earnings Report
Effective October 1, 2026, the SBA requires 7(a) lenders to obtain an independent quality of earnings report on Initial Acquisition and Business Expansion change-of-ownership loans where the business purchase price is $3 million or more. The report must be commissioned by and for the benefit of the lender, and lenders must size the loan on its normalized EBITDA instead of the seller’s add-backs. This article explains what the report has to contain, who is exempt, how disallowed add-backs can shrink a loan or force a larger equity injection or a renegotiated price, and why sellers who understand their add-backs before going to market are better positioned for a smoother financing process. […]
Fairness Opinions: What Boards Should Know Before They Sign
A fairness opinion is an independent assessment of whether the financial terms of a transaction are fair to shareholders, but it speaks to how a board reached its decision rather than whether the decision was right. In this article, The McLean Group’s Valuation Advisory team examines what a fairness opinion is and is not, the three protections it provides to directors, and the situations that most often call for one: conflicts, complex consideration, multiple share classes, and the absence of a competitive process. For boards approaching a significant transaction, engaging an opinion early gives directors a record built while the analysis can still inform the outcome. […]