The Value Equation: A Business Guide to Wealth Cre ation for Entrepreneurs, Leaders & Investors
CH Volk
Résumé
Discover one of the surest means to create personal wealth by building a profitable business
Every now and then, a business book comes along that offers original insights and a fresh perspective. In The Value Equation: A Business Guide to Creating Wealth for Entrepreneurs and Investors , veteran executive, entrepreneur, and investor Chris Volk delivers an engaging, straightforward explanation about how businesses work and provide wealth for entrepreneurs and investors. The author's signature approach is centered on his award-winning wealth creation formula in a book designed to simplify complex subjects with math no more complicated than what you learned in middle school.
Readers will become acquainted with the characteristics of successful business models, together with insights into how leaders can improve their own models in ways that generate personal and collective wealth. The author's framework presented in The Value Equation is the foundation upon which most of the largest personal fortunes were built.
Chris Volk also provides supplemental materials including interactive Excel spreadsheets, illustrations, and sample corporate financial models on a companion website. There is even a link to an award-winning video series created by Volk that served as his inspiration for the book. Full of illustrative case studies that highlight crucial business and finance concepts The Value Equation includes:
- Explorations of the true value of using OPM (Other People's Money) and capital stack variations to build and grow your company.
- Advice on business assembly, growth, mergers, acquisitions, and corporate reengineering, including discussions of valuation multiples, common risks, and capital options.
- Guidance on how to valuate business models, delivered with help from a variety of stories and case studies. Uniquely, the author also draws on his own background, including the introduction of three successful companies to the public markets, two of which he was instrumental in founding.
The Value Equation is an indispensable addition to the libraries of anyone interested in growing wealth and capital through business, whether as a business leader, entrepreneur or investor.
Preface 1
Introduction 3
1. Capitalism and Wealth Creation 10
In the Beginning Is the Idea 10
Unicorn Likelihood 11
Odds of Success 12
The Six Variables 14
2. Daymond John and the First Variable 15
Accountants vs Entrepreneurs 19
Variable #1: Business Investment 20
3. The Capital Stack and Two More Variables 21
The Right Side 21
Other People's Money (OPM) 22
Variable #2: Amount of OPM 24
Variable #3: Cost of OPM 25
4. Three More Variables and Voila! 29
Variable #4: Sales 29
Variable #5: Operating Profit Margin 30
Variable #6: Annual Maintenance Capital Expense 31
Putting the Six Variables Together 32
Gordon Growth Model 34
Equity Valuation 36
The Miracle of Compounding 37
Dissecting Investment Returns 38
5. The V-Formula 42
EVA and EMVA 42
Making the V-Formula Even Simpler 44
Solving for Other V-Formula Variables 46
V-Formula Data Tables 48
6. Business Model Evaluation 50
STORE Capital 50
The FAANGs 55
7. Pulling Corporate Financial Levers 62
Operating Efficiency (O) 63
Sales 63
Operating Profit Margin 64
Asset Efficiency (A) 66
Business Investment 66
Maintenance CapEx 69
Capital Efficiency (C) 71
% of OPM x Cost of OPM 71
Six-Shot Economics 73
8. Choosing from Your OPM Options 75
Designing Your Own OPM 75
Leasing 77
Creating A Model to Evaluate OPM Options 78
Real Estate as an Investment 82
9. Opportunity Cost 85
Some Opportunity Cost Illustrations 86
Creating A Model to Evaluate Real Estate Lease Opportunity Costs 87
10. The Final Form of OPM 98
OPM Equity 99
Sustainable Growth Rate 100
Taking on Modest OPM Equity 102
Deciding How Much OPM Equity to Use 103
Creating a Five-Year Model 105
Sweetening the Deal 107
OPM Equity Flavors 108
OPM Equity Considerations 110
11. A Look at Public Companies 112
Determining Public Stock Equity Returns 117
Walmart 122
12. Animal Spirits 126
Elon Musk and Tesla 128
Stock Exchange Differences 129
Restaurant Case Studies 130
Lone Star Steakhouse & Saloon 131
Boston Chicken 132
Value Investing 134
13. Mergers and Acquisitions 138
OPM Capital Options 139
Solving for Equity and Company Valuation 142
EBITDA Valuation Multiples 144
M&A Risks and Rewards 145
M&A Nightmares 147
GE and M&A-Driven Growth 149
Focusing on What Matters 153
14. The Essential Ingredient 156
The Growing Restaurant Illustration 156
Designed Structural Change 157
Technology-Enabled Changes 158
Core Competency Refinement 160
Keeping It Simple 163
Planned vs. Imposed Structural Change 165
Blockbuster Video 167
Designed Revolutionary Change 169
Reengineering the Corporation 171
15. The Art of the Possible 173
The Circles of Business Life 175
Evolving Capital Choices 178
Value vs Momentum Investing 181
Defining a Financial Win 182
Some Final Thoughts 186
Glossary of Terms 188
The V-Formula Framework 190
Current Pre-Tax Return on Equity 190
The V-Formula Deconstructed 190
Relative V-Formula for Current Pre-Tax Return on Equity 191
Equity Valuation Multiple 191
Equity Value 191
Equity Market Value Added (EMVA) 192
Sustainable Growth Rate 192
Your Current Equity Rate of Return Without Whole Company Ownership 192
Market Return on Equity 193
Company Valuation 193
Compound EMVA Growth Formula 193
Footnotes 194
About the Author 196
Christopher H. Volk
Veteran Executive, Entrepreneur, Business Leader & Investor
A recognized business model expert, Chris has introduced and led three successful public companies, two of which he co-founded. Those companies provided more than $20 billion in growth capital to thousands of businesses, helping them succeed. Chris resides with his wife in Arizona and Alabama.
Caractéristiques techniques
| PAPIER | |
| Éditeur(s) | Wiley |
| Auteur(s) | CH Volk |
| Parution | 03/07/2022 |
| Nb. de pages | 272 |
| EAN13 | 9781119875642 |
Avantages Eyrolles.com
Consultez aussi
- Les meilleures ventes en Graphisme & Photo
- Les meilleures ventes en Informatique
- Les meilleures ventes en Construction
- Les meilleures ventes en Entreprise & Droit
- Les meilleures ventes en Sciences
- Les meilleures ventes en Littérature
- Les meilleures ventes en Arts & Loisirs
- Les meilleures ventes en Vie pratique
- Les meilleures ventes en Voyage et Tourisme
- Les meilleures ventes en BD et Jeunesse
