On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law by President Trump.  After a dramatic few months of political infighting and intense negotiations, Republicans managed to move their sprawling tax and spending package across the finish line.

The OBBBA underwent several changes and iterations, as detailed in our previous alert.  To recap, the House passed the original version of the bill on May 22, 2025.  The Senate then made various amendments and passed its version of the bill on July 1, 2025.  Once sent back to the House to reconcile differences between the two chamber’s versions, the Senate version of the bill passed without amendment on July 3, 2025.  And of course, the bill then reached President Trump’s Desk shortly thereafter for a ceremonial July 4 signing.

The final bill includes a broad collection of tax cuts and offsets that will impact virtually every type of taxpayer.  The key tax items in the bill include:

• A permanent extension of many provisions from the Tax Cuts and Jobs Act of 2017 (TCJA);
• New and restored business favorable provisions;
• Some campaign-promised tax cuts;
• A substantially reworked international tax framework; and
• A sweeping rollback of Biden-era clean energy tax incentives.

Other rumored items, such as a new corporate tax rate, a domestic manufacturing tax rate, a new capital gains tax rate, and carried interest reform, remained omitted from the final bill.

Now that the budget reconciliation process is over, and now that virtually all taxpayers have new legislation that could impact their tax compliance, cash flows, and overall business or wealth goals, please begin consulting with your Elliott Davis tax adviser.

As we continue to digest the OBBBA and eventually provide industry-targeted guidance, consider the following deeper dive into many of the final provisions, summarized by tax type.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.

“Elliott Davis" is the brand name under which Elliott Davis, LLC or PLLC and Elliott Davis Advisory, LLC and its subsidiary entities provide professional services. Elliott Davis, LLC or PLLC and Elliott Davis Advisory, LLC (and its subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Elliott Davis, LLC or PLLC is a licensed independent CPA firm that provides attest services to its customers. Elliott Davis Advisory, LLC and its subsidiary entities provide tax and business consulting services to their customers. Elliott Davis Advisory, LLC and its subsidiary entities are not licensed CPA firms. The entities falling under the Elliott Davis brand are each individual firms that are separate legal and independently owned entities and are not responsible or liable for the services and/or products provided by any other entity providing services and/or products under the Elliott Davis brand. Our use of the terms “our firm” and “we” and “us” and terms of similar import, denote the alternative practice structure conducted by Elliott Davis, LLC or PLLC and Elliott Davis Advisory, LLC.

The Struggle: Navigating Multiple Challenges Simultaneously

A portfolio company was undergoing a significant transition—moving to new ownership, merging with another business, and expanding its facilities. The leadership needed to maintain operational continuity while managing integration challenges. Meanwhile, labor and overhead costs were increasing, straining profitability. The company was dealing with the following challenges:

• They had recently been acquired by a private equity (PE) firm and were merging with another portfolio company, requiring seamless operational integration.
• Rapid growth demanded a facility expansion, but inefficiencies in labor structure and inventory management threatened to escalate costs.
• A $4 million automation investment was under evaluation to boost productivity, but the return on investment (ROI) for various options remained unclear.

The company lacked a structured approach to facility design, staffing, and inventory flow. Without a clear strategy, inefficiencies would persist, limiting scalability. They needed a way to “wipe the slate clean” and rebuild operations in a more structured and scalable manner.

The Turning Point: A Data-Driven Approach

Recognizing the challenges, the company engaged the Elliott Davis advisory team to develop a data-driven operational plan. The focus shifted to facility redesign, process improvement, and integration of automation with labor strategies. Elliott Davis’s approach addressed each challenge with detailed guidance, including the following action steps:

Facility Expansion & Optimization

• Oversaw a large-scale facility expansion, tripling the company’s operational footprint.
• Designed new layouts using AutoCAD to maximize space utilization and workflow efficiency.
• Introduced process improvements to streamline production and reduce manual inefficiencies.

Cost Reduction & Staffing Efficiency

• Addressed labor inefficiencies by introducing process improvements and alternative staffing models.
• Provided oversight on vendor selection, guiding cost-effective and scalable solutions.

Seamless Integration with New Ownership

• Supported the management team post-acquisition to align operations with the new merger partner.
• Standardized inventory tracking and pick paths within the enterprise resource planning (ERP) system.

The Resolution: A Scalable, Efficient, and Future-Ready Operational Model

By implementing operational best practices, the company successfully scaled while reducing inefficiencies. Labor costs stabilized and automation was fully integrated into daily operations. Achievements included:

• Implemented bespoke inventory strategy, reducing order fulfillment times.
• Streamlined ERP processes to improve inventory management and procurement strategy.
• Reduced overtime year-over-year as a percentage of sales due to operational improvements.
• Improved facility design, supporting long-term growth and operational scalability.

The Elliott Davis team helped streamline operations while supporting the integration process, resulting in a seamless strategic transition. With an enhanced operational structure, the client was well-positioned for sustained growth and success under new ownership.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.

The Struggle: A Complex Technology Firm Acquisition

An established company was preparing for its first acquisition in the technology space and facing unfamiliar challenges. They were overwhelmed with the sheer volume of due diligence, reconciliation, and integration work ahead.

The Elliott Davis team quickly recognized that the CFO was facing significant challenges. The lack of a structured plan for integration was leading to mounting stress and a high risk of inefficiencies post-close. With multiple systems operating separately, they needed a clear roadmap to unify financial reporting, align teams, and streamline operations.

While the initial ask was centered around accounting reconciliation and due diligence, it quickly became clear that the integration process was far more complex than management anticipated. Many workstreams were being handled in isolation without a comprehensive vision. Without a structured roadmap, the company was facing a chaotic first year post-close. Management was addressing issues on a reactive basis rather than a strategic one.

The Turning Point: Creating a Unified Vision

Recognizing the challenges ahead, the Elliott Davis team proposed a structured approach: a six-week discovery phase to deeply assess the finance function, organizational structure, and system integration. The goal was to provide clarity before the transaction closed to avoid unnecessary delays and inefficiencies post-close.

Elliott Davis built a cross-functional team spanning technical accounting, valuation, tax, financial planning & analysis (FP&A), and integration professionals, bringing in analytics specialists and industry veterans to consider every aspect of the integration. The team served as a sounding board for the CFO, alleviating stress and providing a structured plan to manage the transition effectively.

Key deliverables included:

• Day 1 priority item checklist

• A detailed finance, strategy & operations assessment including focus areas of month-end close, roles and responsibilities, accounting processes, FP&A, organizational design, and technology integration.

• An integration roadmap, breaking down the integration process into 30/60/90-day milestones.

• A comprehensive scorecard, rating each measure (red/yellow/green) to prioritize areas needing immediate attention.

• Working with management to develop their centralized Project Management Office (PMO) framework, aligning stakeholders, including external service providers, on key workstreams and progress tracking.

The Elliott Davis team presented this strategy to the CFO, emphasizing the importance of a structured approach. Without it, the integration would become a game of "whack-a-mole," addressing challenges reactively instead of proactively. The leadership team saw the value and immediately engaged Elliott Davis to supplement their efforts and provide guidance.

The Resolution: A Seamless Integration

With the roadmap in place, the integration process became significantly more manageable. The Elliott Davis team provided end-to-end guidance, helping the CFO and other leaders manage the acquisition with confidence.

Key outcomes included:

• Clear Ownership & Accountability: Identification of project tasks, personnel assignments, and tools to monitor progress. The collaboration identified areas where Elliott Davis could enhance value.

• Talent Strategy: Assessment of employee and contractor roles, identification of skill gaps, restructuring to align with business goals, and strategic workforce planning.

• Technology Consolidation: Development of a plan to integrate multiple systems, reducing inefficiencies and improving data connectivity.

• Post-Close Audit Readiness: The company was confident in their compliance with regulatory requirements and implemented a structured financial reporting system to fit their financial reporting framework.

Throughout the process, the Elliott Davis team helped organize and guide strategy and execution across workstreams. The collaboration created an organized approach that simplified communication and decision-making for the CFO.

Final deliverables included:

• An integration roadmap aligned with leadership’s vision.

• Key findings to encourage rapid progress post-close.

• A comprehensive scorecard that provided visibility into the integration process.

As a result, the acquiring company avoided major post-close inefficiencies and now has a strong, structured plan for continued success. The Elliott Davis team took what could have been a chaotic process and turned it into a seamless, strategic integration.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.