Why Your Business Is Worth Less Than You Think (And How to Fix It)

How to Value a Business: The Art and Science of Financial Recasting Price is what you pay. Value is what you get. But how do you determine that value? In this masterclass episode of Letters of Intent, Pankaj Raval and Sahil Chaudry are joined by Stephen Bethel, a veteran business appraiser and broker with decades of experience. They dive deep into the art and science of valuation, exposing the biggest mistakes founders make (like treating their business as a personal ATM), why unsexy industries like porta-potties are often better investments than tech unicorns, and why the commercial real estate market might be facing a 30% correction. If you plan to sell your business one day, this conversation will tell you exactly how to get it wedding ready. In this episode, you will learn: Do not Be a Personal ATM: If you run personal expenses through your business to lower taxes, do not expect a high valuation when you sell. Buyers will not pay for add-backs they cannot verify. Recast Your Financials: Before selling, hire a CPA to recast your financials. Presenting clean, adjusted numbers on letterhead builds trust and value. The Dirty Business Advantage: Simple, unsexy businesses (pallet companies, car washes, solid waste) often trade at better multiples and have more stable cash flow than flashy tech startups. The Real Estate Trap: If you own the building your business operates in and do not pay yourself market rent, your EBITDA is artificially high. A buyer who has to pay rent will value your business much lower. Commercial Real Estate Warning: Why Stephen predicts a potential 25 to 30 percent drop in commercial real estate prices over the next 18 to 24 months due to negative absorption and high interest rates. Get Wedding Ready: Selling a business is like getting married or selling a car. You need to clean it up, organize your contracts, and make sure the restroom is not a dump because buyers judge the unseen by the seen. About Our Guest: Stephen Bethel is a business appraiser and broker with Frazier Capital. ► Connect with Stephen on LinkedIn: [  / stephen-bethel-a78a20105  ](  / stephen-bethel-a78a20105  ) ► Phone: 213-439-9956, extension 102 ► Listen to Letters of Intent's other episodes: bit.ly/LOIPodcast ► Visit Carbon Law Group's Website: carbonlg.com ► Protect Your Brand with Our Trademark Watch Service: [carbonlg.com/introducing-carbon-laws-new-trademark-watch-service/](https://carbonlg.com/introducing-carb...) Connect with Us: ► Connect with Pankaj: [  / pankaj-raval  ](  / pankaj-raval  ) ► Connect with Sahil: [  / sahil-chaudry-6047305  ](  / sahil-chaudry-6047305  ) ► Schedule A Call With Us: carbonlg.com #CarbonLawGroup #BusinessValuations #MergersAndAcquisitions #CommercialRealEstate #EBITDA Carbon Law Group, Los Angeles, Los Angeles County