Why Every Business Owner Needs a Valuation, Even If You Are Not Selling

In this episode of EWA's FIN-LYT Podcast, Matt Blocki sits down with Tom Krahe, Managing Shareholder at Strategic Advisors and one of Pittsburgh's leading experts in business valuation and investment banking, to break down why every small business owner should get a valuation done. Even if selling is the furthest thing from your mind, this conversation will change the way you think about your most valuable asset. Matt and Tom walk through a real-world scenario where a business owner with a $50 million company and $10 million in outside assets could face a $14.7 million tax bill at death. In that situation, the liquid assets go to the government and the business gets forced into a fire sale. They explain the estate planning strategies that can prevent this, including gifting minority interests into irrevocable trusts and how valuation discounts for lack of control and lack of marketability can legally reduce the amount of exemption used. Tom shares one of his partner's most memorable lines: "Anyone paying the estate tax was either ignorant or lazy." The conversation also covers what actually goes into a business valuation, from recasting three to five years of financials and removing personal expenses to building out forecasts and understanding the income approach. Tom explains why sloppy books can cost you real value on both the estate planning and sale side, and why a one month turnaround is entirely realistic if you come prepared. Matt and Tom also discuss the psychological barriers that keep successful business owners from taking this step and why the most important work on your to do list is usually the thing you least want to do. Whether you own a $5 million or $100 million business, this episode gives you a clear roadmap for protecting what you have built and planning for what comes next. Be sure to like and subscribe for weekly conversations that help you align your wealth with the life you want to live. Connect with EWA: https://ewa-llc.com/   / ewa.llc     / equilibrium-wealth-advisors     / equilibriumwealthadvisors   View EWA Disclosures and Firm ADV: https://adviserinfo.sec.gov/firm/summ...