The phrase “with knowledge comes power” means that possessing information and understanding allows individuals to make better decisions, achieve their goals, and exert influence over situations. “Power without tools is useless power” implies that having power, resources, or knowledge without the means or ability to apply them effectively is essentially ineffective.

At Elite Business Exchange, we are dedicated to bringing you the best technology to streamline your workflows as a business broker and M&A advisor; however, we think it’s just as important to let you know what we’re seeing in the industry so you stay ahead of your competitors and have the knowledge to move in today’s market.

With that in mind, let’s get to it!!

Tariffs Suck: Doubling Down on Domestic Deals

Tariffs are a pain in everyone’s ass. They’re jacking up costs, messing with supply chains, and making M&A deals feel like playing dodgeball; but if you’re a Main Street broker or work with smaller or mid-sized businesses that source locally, you don’t have to just survive the tariff mess; you’ve got a secret weapon.

Let’s unpack this.

Tariffs have been dominating headlines for years, but this year, 2025, they’re in every business and every headline. Their ripple effects are shaking up markets everywhere. You might think: “I source locally, why should I care about tariffs?”

The answer isn’t as simple as “you don’t.” Global tariffs affect local businesses in less obvious but very real ways. Understanding this impact and knowing how to leverage local market strengths is critical to navigating M&A deals successfully when a buyer asks, “What about suppliers?”..... and they are going to ask.

Tariffs Are Like That Drunk Uncle at Your Wedding

You didn’t want to invite them but didn’t have a choice. You hoped they wouldn’t show up, but here they are, dancing around and ruining your special day. See, just because the suppliers are local doesn’t mean tariffs aren’t crashing your close, and here’s how:

• Upstream Cost Increases: Local suppliers often rely on imported raw materials or components. When tariffs raise the price of these inputs, your suppliers’ costs go up, and so do yours. For example, a local manufacturer buying steel or chemicals may face higher costs that trickle down to their buyers.
• Inflationary Pressure: Tariffs can push up energy, fuel, and transportation costs. This affects virtually all businesses through higher operational expenses, squeezing margins whether or not they directly import goods.
• Customer Demand Shifts: If customers pay more for imported goods or feel the inflation pinch, their spending habits adjust. Even local businesses can see softened demand as wallets tighten.
• Competitive Dynamics: Larger companies with global supply chains may find ways to absorb or hedge tariff impacts, temporarily outpricing smaller firms. This puts pressure on our Main Street businesses to adapt.

But Here’s Where You Flip the Script

Buyers, sellers, and brokers must recognize these indirect tariff impacts in valuations and negotiations. A business sourcing locally isn’t immune; understanding cost pressures and demand changes is essential for realistic pricing and risk assessment.

However, the flip side is that local businesses have built-in advantages in this environment; advantages brokers can highlight and capitalize on.

• Less surprise, more control: You’re not waiting on customs paperwork or international shipping nightmares. Local sourcing means fewer curveballs and smoother operations. Buyers value the predictability of local supply chains, which translates into faster deal closes and smoother integrations.
• Move fast or get eaten: Small to mid-sized businesses can pivot quickly, change suppliers, adjust pricing, and tweak offerings at lightning speeds. You can’t do that when you’re managing a global supply chain with a hundred moving parts. Agility is a prized asset in turbulent markets.
• Sellers, know your market like the back of your hand: You live where you work. You know your customers, your competitors, and the local quirks. No amount of spreadsheets or ChatGPT can capture that knowledge. This reduces market risk, making it easier to spot growth or consolidation opportunities.

What This Means for You, the Broker:

• Educate your buyers and sellers on tariff ripple effects. Make sure clients understand that even local businesses feel tariff pressure indirectly and that being prepared is a competitive edge.
• Tell your sellers to get their ducks in a row, ASAP. Find multiple local suppliers for the business’s needs to allow for a fast pivot if needed. Have them clean up financials, document their processes, and plan for cost pressures. A business that is prepared and ready to sell now will beat one waiting for perfect conditions.
• You need to sell local sourcing like it’s gold. When pitching buyers, lead with the fact that these businesses aren’t sitting ducks for tariff shocks. That’s stability buyers pay a premium for. Frame these strengths as risk mitigators that enhance valuation and buyer confidence. Basically, highlight local sourcing and agility as selling points, not points of contention.
• Leverage data and scenario planning. Use valuation and modeling tools to quantify risks and showcase how local businesses are insulated or adaptable to market shifts. Don’t guess what tariffs might do. Show buyers and sellers real numbers. How much margin risk is there? What’s the upside in agility? Information wins deals in today’s savvy buyer profile.
• Focus your hunt locally and regionally. You’re better off chasing deals that work locally and regionally, where you have boots on the ground, trusted contacts, and fewer international curveballs.

B.L.U.F. (Bottom Line Up Front): Quit Complaining About Tariffs and Start Using Them

Tariffs aren’t going anywhere soon. They’re the new normal, like Monday morning meetings or surprise audits. Their indirect effects will continue to shape Main Street business economics, but brokers and local businesses aren’t powerless; in fact, they’re armed with local sourcing, agility, and deep market knowledge.

Understanding these dynamics and leveraging local market strengths will give you an edge over the competition.

Help your clients see the real story behind tariffs, prepare accordingly, and seize the opportunities that a local, agile approach offers in the current M&A landscape.

As a broker, if you’re not pitching those strengths, you’re not representing your clients the way they deserve.

Get your clients prepared, get deals moving, and turn tariffs into your competitive advantage. Because in a “crisis,” speed and smarts win. The market is messy, and that’s exactly the vantage point you want to be in.

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