Trapped Wealth Ratio

Producers Wealth

Trapped Wealth Ratio

How much of your wealth is trapped in your business?

Two numbers tell you how exposed your family is if the business has a bad year, loses a key client or fails to sell. Takes about 2 minutes. Rough figures are fine.

Step 1 of 3

Business value

$

Enter your valuation to continue.

$

Enter your annual profit to estimate the value.

Valuation multiple3.0x

Most owner-operated businesses trade at 2-5x. This is an estimate, not an appraisal.

Your ownership share100%
Estimated value of your share$0

Leave anything that doesn't apply blank.

$
$
$
$
$

Rentals and other property, not your home.

$

Many planners leave your home out because you can't spend it.

$
$

Credit cards, personal loans and other debts not already netted out above.

Net worth outside the business$0
$

Used to show how many years your outside wealth could support your lifestyle. Skip it if you prefer.

Your Trapped Wealth Ratio

0.00
Trapped
00.250.501.002.00+

0% of your net worth is trapped in your business.

Your personal debts are larger than your assets outside the business, so your ratio shows as 0.00. Every dollar you own is effectively tied to the company.

If the market turns or a major event hits your business, it doesn't just hit the business. It hits 0% of everything you've built.

And most businesses never sell. Only about 20-30% of businesses that go to market actually sell.* If yours is one of the 70-80% that don't, that wealth may never turn into cash you can use. Even when a sale does close, taxes come out before you see a dollar.

*Source: Exit Planning Institute. Industry estimate; individual outcomes vary.

1.00 is the line. Below it, the business is more than half of your net worth, and you're one bad year, lawsuit, health event or failed sale away from serious damage.

Your full report

Unlock your full breakdown and escape steps

See the dollar gap to the line, what you'd keep if the business disappeared tomorrow, and three steps for where you stand. We'll email you a copy of your report.

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Diagnosis

Here's what your ratio means

The gap

What it takes to cross the line

Needed outside the business to reach 0.50
Needed outside the business to reach 1.00

If the business disappeared tomorrow

You would keep .

Your escape steps

Three moves for where you stand

    These steps are general education, not personal financial advice.

    Next step

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    Run your own numbers

    Educational content only. The Trapped Wealth Ratio is a general educational tool based on the figures you enter. It is not a valuation, and it does not constitute tax, legal, accounting or investment advice, or a recommendation to buy any financial or insurance product. Results are hypothetical and vary with your circumstances. Consult your own qualified CPA, attorney and licensed financial professionals before acting. Producers Wealth (Laubscher Wealth Mgmt LLC) is licensed to offer insurance products in all 50 states and Puerto Rico. Insurance products are subject to underwriting and carrier approval. By submitting your information you consent to be contacted by Producers Wealth by email, phone or text about your results; you may opt out at any time.