In this episode of the iWealth Podcast, Brad Connors sits down with Matt to unpack one of the biggest (and often overlooked) financial questions for business owners: What is your business actually worth—and will that be enough to support your lifestyle when you exit?Brad kicks off the conversation by introducing two common valuation methods—EBITDA multiples and revenue-based valuation. For business owners nearing the end of their journey or even just starting to plan their exit, understanding these calculations can be crucial. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the industry-standard way many businesses are valued, particularly when selling to outside buyers or private equity. But it’s not the only method. Some industries and companies may be valued using top-line revenue with a multiple—especially if EBITDA isn’t the clearest indicator of value in their business model.But as Brad and Matt point out, valuation alone isn’t the full picture. That’s where the wealth gap comes in.The wealth gap is the difference between what your business (and assets) are worth and what you actually need to maintain your lifestyle after you sell or retire. Brad shares how business owners often overestimate how far the proceeds from selling their company will go. He walks through a common example: if you need $100,000/year to support your post-business lifestyle and apply the 4% rule, you’ll need around $2.5 million saved. If your business is worth $2 million and you’ve got $250K saved elsewhere, you’re short—and that’s your wealth gap.Matt brings a more personal perspective. For him, it’s not just about EBITDA or revenue—it’s about how much his wife spends (a relatable benchmark for many couples!). Jokes aside, it illustrates how important it is to connect business valuation with real-world spending. Retirement isn’t just a number—it’s your lifestyle, your hobbies, your travel, and your future healthcare costs.Brad urges business owners to plan ahead, not wait until the sale is imminent. Whether you plan to sell your company to an outsider, pass it on to family, or just slowly exit over time, you’ll do yourself a favor by understanding the valuation process early—and more importantly, how it ties into your personal financial needs.They also touch on other common realities like “taking chips off the table” to reduce risk, the emotional attachment to your business, and the fact that whether you’re ready or not, every business owner exits someday—through sale, transition, or death.This episode is a must-listen for entrepreneurs who haven’t done the math—or are nervous about what they’ll find when they do. Brad and Matt make the complex feel more approachable, bringing insight, humor, and encouragement to a topic that’s often avoided.#iWealthPodcast #BusinessOwner #ExitPlanning #EBITDA #WealthGap #EntrepreneurFinance #RetirementPlanning #FinancialFreedom #BusinessValuation
