Equity Value Enhancement - A Tool to Leverage Human and Financial Capital While Managing Risk

Informationen zum Autor CARL L. SHEELER, PHD, ASA, is the managing director and global group leader of family office and business strategies at Berkeley Research Group, LLC?a 900+ staff global business litigation and advisory services firm. He is also the founder of Business Valuations, Ltd./Allison Appraisals & Assessments, Inc. and co-founder of Privatus CI3O Services, LLC. He has performed more than 1,200 high-profile litigation, valuation, and restructuring engagements from midmarket to national companies. He has testified more than 170 times on matters ranging from IRS taxpayer to shareholder disputes and assisted hundreds of clients on the measurement, creation, management, and defense of more than $50 billion in values. Carl is also a Manager of the Two Bears Ranch, LLC, formed to receive the proceeds from the sale of this book which will be used to serve combat PTSD veterans and at-risk horses and dogs. They will be healed through equine and canine therapy. Donations, grants, and ranch operation revenues will also subsidize this cause. If interested, contact Carl at his website at www.carlsheeler.com or www.twobearsranch.com . Klappentext A detailed look at risk identification and value creation in private equity investmentEquity Value Enhancement ("EVE"): Governance, Risk, Relationships & Knowledge ("GRRK") provides the information and tools practitioners and business owners need to work with the multitude of intangibles ("GRRK") in equity investment decisions. The author engages readers with an insightful and brief claim: "Values are more than numbers." He then provides support for just how important human capital is to the value creation paradox. He doesn't stop there because ideas without definitive actions don't promote transformation. He further challenges the reader with: "If you don't think outside of the box, you're doomed to live in the box."A user-friendly manual chock full of vignettes, suggestions and pithy commentary EVE is a must read for owners, officers, boards and advisors to derive understanding of business value drivers. This book teaches the reader how to conduct more intangible asset due diligence as well as what decisions and behaviors impact value. With more effective methods of risk identification, measurement, management, and mitigation ("IMMM"), trusted advisors and owners can establish a "working on the business" strategy to prioritize issues impacting a company's intangible assets - assets which almost inevitably create the largest component of value in flourishing companies. This focus also serves to reduce risk while leveraging human capital and operational effectiveness. This book challenges users of value enhancement and valuation services to demand greater intellectual rigor to best serve owners/investors of the United States' economic engine--the midmarket company. Therefore, readers are challenged to look beyond the common metrics and numbers. They are admonished to rely less on formulaic approaches and on software that can generate spurious opinions. The reader is called to action by the author, a US Marine Combat Officer veteran, to lead the change: "You burn the boats if you want to be sure you succeed taking the island."Trillions of dollars of private equity are changing hands as Baby Boomer owners and investors seek greater liquidity and legacies while investors seek higher returns from direct investment in private companies. This book provides risk and human capital guidance removing some of the guesswork on valuation and value creation.* Provide better evidence of value & equity discounts* Identify and quantify risk and provide tools to manage it* Inform better business management and investment decisions* Create a more comprehensive valuation for equity investments* Roadmap and strategy for enhancement of going concern valueGovernance, Risk and Compliance ("GRC") management are hot topics in today's economic environ...

List of contents

Foreword xv
 
Preface xix
 
Acknowledgments xxxi
 
About the Author xxxiii
 
Author's Vision and Challenge xxxvii
 
CHAPTER 1 Value ABCs 1
 
Capital and Risk 4
 
Understanding Assets 5
 
Plugging the Gap 7
 
Notes 8
 
CHAPTER 2 Focus on Trusted Advisors 9
 
The Path to Being the Best 16
 
Question Yourself 18
 
Taking It to the Next Level 19
 
Notes 22
 
CHAPTER 3 Focus on Business Owners 23
 
The Role of Advisors 27
 
The Cost of Bad Advice 28
 
The Value of Leveraged Knowledge 29
 
Engaging the Best 31
 
Practical Vetting Suggestions 32
 
Size and Scope Considerations 33
 
Setting Expectations 34
 
Note 44
 
CHAPTER 4 Risk in the Eye of the Beholder 45
 
Inexperienced Business Appraiser Lenses 47
 
CPA Lenses 48
 
Attorney Lenses 51
 
Investment Banker/Business Broker/Business Intermediary Lenses 52
 
Commercial Banker Lenses 54
 
Insurance Professional Lenses 55
 
Wealth Manager/Financial Advisor/ Fiduciary/Trust Officer Lenses 55
 
Research on Risk and Returns 59
 
Economist Lenses 60
 
MBA/PhD/CFA Lenses 61
 
Owner/Family Lenses 63
 
Family Business Advisor Lenses 70
 
Staff/Vendor Lenses 71
 
Client Lenses 75
 
Notes 80
 
CHAPTER 5 The Role of Governance 81
 
Governance 83
 
Focus on Culture 84
 
About Boards, Governance, and Strategy 85
 
Healthy Board Governance and Strategy Creates Value 87
 
Strategy and Equity Value 90
 
Family Harmony and Legacy as a Governance Driver 93
 
Board Strategic Direction and Accountability 94
 
Board Structure and Member Traits 95
 
Governance and Risk Management 97
 
Qualitative Value Measures 98
 
Taking Control 99
 
The Secret Sauce 101
 
Governance Measurements 104
 
Governance Takeaways 106
 
Notes 106
 
CHAPTER 6 The Role of Relationships 107
 
Client Relationships 112
 
Advisor Relationships 114
 
Commercial Bankers 116
 
Investment Bankers 116
 
Insurance Agents 118
 
Wealth Advisors 120
 
Board of Directors 121
 
The Bottom Line on "Free" Advisors 122
 
Accountants 122
 
Attorneys 126
 
Fractional CFO 127
 
Family Relationships 128
 
Shareholder Relationships 129
 
Vendor Relationships 129
 
Community/Legislative/Philanthropic Relationships 130
 
CHAPTER 7 The Role of Risk: Financial- and Legal-Oriented Risk 131
 
Commonly Missed Risks 137
 
Final Thoughts 172
 
Notes 174
 
CHAPTER 8 The Role of Risk: Operational-Related Risks 175
 
CHAPTER 9 The Role of Knowledge 241
 
A Matter of Culture 244
 
Healthy Knowledge 247
 
Be Transparent 248
 
Encourage Two-Way Communication 249
 
Knowledge and Human Capital 249
 
Knowledge Measures 252
 
Notes 253
 
CHAPTER 10 Valuation versus Value Creation (GRRK) 255
 
Software and Rules of Thumb 258
 
A Personal Aside 260
 
Collaboration, Cohesion, and Transformation 261
 
Notes 262
 
CHAPTER 11 Putting It All Together--Four Vignettes 263
 
Vignette One: What the 2009 Financial Crisis Can Teach Us (It's about Relationships) 265
 
Vignette Two: The Trees-and-Forest Syndrome 272
 
Vignette Three: The Path Not Taken 275
 
Vignette Fou

Product details

• Authors: Carl L. Sheeler, Sheeler, Carl L Sheeler, Carl L. Sheeler, CL Sheeler, Sheeler Carl L.
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 09.02.2016
• EAN: 9781118871003
• ISBN: 978-1-118-87100-3
• No. of pages: 368
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; Wiley Finance Editions
• Subjects: Social sciences, law, business > Business > Business administration; Rechnungswesen, Bewertung, Accounting, Valuation