"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 and Sahil 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."

Takeaways

• Don't Be a Personal ATM: If you run personal expenses through your business to lower taxes, don't expect a high valuation when you sell. Buyers won't pay for "add-backs" they can't 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.
• Real Estate Trap: If you own the building your business operates in and don't 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: Stephen predicts a potential 25-30% drop in commercial real estate prices over the next 18-24 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 isn't a dump"—because buyers judge the unseen by the seen.

Soundbites

• "If you're screwing the IRS, maybe I'm going to get screwed too."
• "Simpler the business and the dirtier the business, the better it is."
• "Everyone thinks their house is worth a whole bunch... My business is different... you're like, yeah, well, maybe not."
• "I've seen a lot of software companies go nowhere... I haven't made money in four years, we're going to break even in two."
• "It's kind of like getting in shape to go get married... you gotta look good."
• "Everyone looks at it as basically a private ATM... but on the flip side, I also want my cake and eat it too."

Keywords

Business Valuation, Stephen Bethel, M&A, Commercial Real Estate, EBITDA, Exit Strategy, Small Business, Entrepreneurship, Due Diligence, Financial Planning, Carbon Law Group

Guest
Stephen Bethel (Frazier Capital)

• Socials: https://www.linkedin.com/in/stephen-bethel-a78a20105/
• Phone: 213-439-9956, extension 102

🔗 Learn More

Website: carbonlg.com

Connect with Pankaj: https://www.linkedin.com/in/pankaj-raval/

Connect with Sahil: https://www.linkedin.com/in/sahil-chaudry-6047305/

Trademark Watch Service: https://carbonlg.com/introducing-carbon-laws-new-trademark-watch-service/

Click Here To Schedule A Call With Us

Jorge Rabaso arrived in the United States with $300 in his pocket, limited English, and a suitcase full of fear. Today, he is a pillar of the Los Angeles business community, founder of the Hispanic Business Network, and a Fernando Award nominee.

In this inspiring episode of Letters of Intent, Pankaj and Sahil sit down with Jorge to discuss his incredible journey of resilience. They explore his "Win-Win" philosophy for business, why he dedicates his life to giving back, and tackle the often-misunderstood world of life insurance—explaining how to turn a necessary cost into a powerful, tax-free asset for your family and business.

Takeaways

• The Immigrant Edge: Jorge channeled the fear of being in a new country into a relentless drive to connect. He didn't wait for a community; he built one by founding the Hispanic Business Network.
• Win-Win or Nothing: Success isn't a zero-sum game. Jorge believes that true power comes from ensuring everyone you interact with also wins.
• Life Insurance as an Asset: For high-income earners, permanent life insurance (like IULs) can be a tax-free savings vehicle, not just a death benefit. It can fund retirement, college, or emergencies.
• The Buy-Sell Essential: If you have a business partner, you need a buy-sell agreement funded by life insurance. Without it, your partner's spouse could become your new 50% partner if tragedy strikes.
• Living Benefits: Modern life insurance often includes "living benefits" that pay out if you get a critical or chronic illness, acting as a safety net while you are still alive.
• Service fills the Void: Jorge argues that money and ego cannot fill the human "hole." Only teaching and helping others provides true fulfillment and peace of mind.

Soundbites

• "I arrived with $300 in my pocket... I still remember the feeling of scare."
• "I remember looking to Los Angeles from the 9th floor... I didn't know 20 people. I asked myself, how am I going to do this?"
• "Play win-win means whatever goes through our life, they have to win and we have to win."
• "That hole with money doesn't fill... teaching others made me power and that made me alive."
• "People don't want to think about life insurance... because to die is something I don't want to think about."
• "If something happened to one of the partners... the family of the partner is going to be the owner... unless you have a buy-sell agreement."

Keywords

Jorge Eduardo Robasso, Hispanic Business Network, Immigrant Story, Entrepreneurship, Resilience, Life Insurance, IUL, Buy-Sell Agreement, Financial Planning, Community Leadership, Fernando Award, Carbon Law Group

🔗 Learn More

Website: carbonlg.com

Connect with Pankaj: https://www.linkedin.com/in/pankaj-raval/

Connect with Sahil: https://www.linkedin.com/in/sahil-chaudry-6047305/
Connect with Jorge: https://www.linkedin.com/in/jorge-eduardo-rabaso-lutcf-3a956a7/

Trademark Watch Service: https://carbonlg.com/introducing-carbon-laws-new-trademark-watch-service/

Click Here To Schedule A Call With Us

"Tariff" might be the President's favorite word, but for businesses, it's becoming a nightmare. In this episode of Letters of Intent, Pankaj Raval and Sahil Chaudry break down the new "Trump 2.0" trade regime.

They explain why tariffs are no longer just a trade tool but a "core policy weapon," how "tariff stacking" can quietly triple your landed costs (up to 67% on some goods), and why courts are rejecting "Force Majeure" as an excuse to break contracts. If you import goods, you need to audit your agreements now—because silence on tariffs means you foot the bill.

Takeaways

• Tariffs are a Weapon: The administration is using tariffs as a broad economic tool, not just for trade disputes. Expect a baseline 10% global tariff plus country-specific penalties.
• The "Stacking" Trap: It’s not just one duty. You face a baseline tariff, plus Section 301, Section 232, and reciprocal tariffs. This "stacking" effect can increase costs by 40-100% overnight.
• Force Majeure is Dead: Courts have ruled that tariffs are "foreseeable" market risks, especially when announced publicly on social media. You cannot use "Act of God" clauses to escape a contract just because it became expensive.
• Audit Your Contracts: Review your "Fixed Price" and "Change in Law" provisions. If your contract is silent on who pays new tariffs, the burden usually falls on the performing party (the importer).
• Drafting for Uncertainty: Future contracts need explicit tariff allocation. Include triggers for price adjustments, renegotiation rights, or termination clauses if duties spike beyond a certain threshold.
• Preserve Refund Rights: Even if tariffs are later ruled illegal by the Supreme Court (which is pending), you won't get a refund unless you actively preserved your rights.

Soundbites

• "Trump has said repeatedly, tariffs are the most beautiful word in the dictionary."
• "We're not just talking about a few targeted duties. We're talking about a baseline global tariff regime."
• "A sudden 20% increase... with Indian goods right now... you're talking about upwards of 67%. That can vaporize your entire pricing model."
• "Courts are consistently saying [you can walk away] only if your contract says you can."
• "It's almost impossible to argue surprise... generic force majeure clauses... it's just not working."
• "Contracts have to become living, breathing documents that can respond to tariff risk."

Keywords

Tariffs, Trump 2.0, Trade War, Supply Chain, Force Majeure, Commercial Contracts, Import/Export, Customs, Risk Management, Tariff Stacking, Carbon Law Group

🔗 Learn More

Website: carbonlg.com

Connect with Pankaj: https://www.linkedin.com/in/pankaj-raval/

Connect with Sahil: https://www.linkedin.com/in/sahil-chaudry-6047305/

Trademark Watch Service: https://carbonlg.com/introducing-carbon-laws-new-trademark-watch-service/

Click Here To Schedule A Call With Us