How to Tariff Proof Your Business
STEAM =
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Science
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Technology
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Engineering/Manufacturing/Architecture
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Agencies
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Math/Accounting/Tax/Bookkeeping
WHAT STEAM BIZ OWNERS MUST KNOW
Private equity isn't just for Wall Street anymore. PE-backed companies employ 13 million Americans (7% of GDP), pay $300B+ in taxes yearly, and offer higher wages ($85K vs $77K national average). Many of these companies operate in science, tech, and engineering sectors—making them particularly vulnerable to upcoming policy shifts.
Why This Matters:
President Trump's administration is moving quickly to implement tariffs, especially targeting Canada and Mexico. For STEAM companies with cross-border supply chains or international customers, this creates both challenges and opportunities.
What Forward-Thinking STEAM Companies Are Doing:
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Investing in AI ($200B+ industry-wide) to be competitive
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Restructuring supply chains to minimize tariff exposure
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Positioning for gov’t contracts while preparing for shifts in federal spending priorities
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Documenting tariff mitigation strategies to maintain valuation
TAKE CONTROL OF YOUR EXPOSURE
Drew Maloney from the American Investment Council shared with me this week: "The president really believes in tariffs, he has always wanted to do them, and previously he was more restrained. Now, they're going to do tariffs, and do them until the market says they don't work. Plan on tariffs coming. "
Want to know how much the coming tariffs might affect your business valuation? Grab the free worksheet and find out (<5 min).
HOW TO TARIFF PROOF YOUR EXIT
How One Tech Company Increased Value Despite Tariffs
A tech hardware company was planning to sell within 6 months. When tariff announcements threatened to spook buyers, they took three simple steps:
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Created "with tariffs" and "without tariffs" financial projections
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Identified alternative suppliers for key components
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Highlighted their adaptability in marketing materials
Their valuation multiple actually increased from 6.2x to 6.8x EBITDA, adding millions to their exit price.
Quick Action Steps:
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Review your supply chain for exposure to tarrif activity, with Mexican and Canadian tarrifs potentially softening EOY
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Develop a "tariff response plan" for potential buyers
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Consider accelerating your exit if your biz has little exposure
Stay rebellious,
kinza
p.s. See how much tariffs might impact an acquisition or exit in five minutes or less. Click below.
