Value Equation - A Business Guide to Wealth Creation for Entrepreneurs, Leaders &

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.

Sommario

Preface xi
 
Introduction 1
 
Chapter 1: Free Enterprise and Wealth Creation 11
 
In the Beginning Is the Idea 12
 
Unicorn Likelihood 13
 
Odds of Success 14
 
The Six Variables 16
 
Chapter 2: Daymond John and the First Variable 17
 
Accountants vs. Entrepreneurs 21
 
Variable #1: Business Investment 23
 
Chapter 3: The Capital Stack and Two More Variables 25
 
The Right Side 25
 
Other People's Money (OPM) 26
 
Variables #2 and #3: Amount and Cost of OPM 29
 
Cost of Capital vs. Cost of Equity 30
 
Capital Stack Assembly 31
 
Equity Sourcing 33
 
Chapter 4: Three More Variables and Voilà! 35
 
Variable #4: Sales 36
 
Variable #5: Operating Profit Margin 36
 
Variable #6: Annual Maintenance Capital Expense 37
 
Putting the Six Variables Together 39
 
Gordon Growth Model 42
 
Equity Valuation 43
 
The Miracle of Compounding 44
 
Dissecting Investment Returns 47
 
Chapter 5: The Value Equation 51
 
EVA and EMVA 52
 
Making the V- Formula Even Simpler 54
 
Solving for Other V- Formula Variables 56
 
V- Formula Data Tables 58
 
Chapter 6: Business Model Evaluation 61
 
STORE Capital 62
 
The FAANGs 66
 
Chapter 7: Pulling the Corporate Efficiency Levers 75
 
Operating Efficiency (O) 76
 
Asset Efficiency (A) 80
 
Capital Efficiency (C) 85
 
Six- Shot Economics 88
 
Chapter 8: Choosing from Your OPM Options 89
 
Designing Your Own OPM 90
 
Leasing 91
 
Creating a Model to Evaluate OPM Options 93
 
Real Estate as an Investment 98
 
Chapter 9: Opportunity Cost 101
 
Some Opportunity Cost Illustrations 102
 
Creating a Model to Evaluate Real Estate Lease Opportunity Costs 104
 
Chapter 10: The Final Form of OPM 115
 
OPM Equity 116
 
Sustainable Growth Rate 118
 
Taking on OPM Equity 120
 
Contents ix
 
Deciding How Much OPM Equity to Use 121
 
Creating a Five- Year Model 122
 
Sweetening the Deal 125
 
OPM Equity Flavors 127
 
OPM Equity Considerations 129
 
Chapter 11: A Look at Public Companies 131
 
Determining Public Stock Equity Returns 137
 
Walmart 143
 
Chapter 12: Animal Spirits 149
 
Elon Musk and Tesla 152
 
Stock Exchange Differences 154
 
Restaurant Case Studies 155
 
Lone Star Steakhouse & Saloon 155
 
Boston Chicken 158
 
Value Investing 159
 
Chapter 13: Mergers and Acquisitions 165
 
OPM Capital Options 167
 
Solving for Equity and Company Valuation 170
 
EBITDA Valuation Multiples 172
 
M&A Risks and Rewards 173
 
M&A Nightmares 176
 
GE and M&A- Driven Growth 179
 
Focusing on What Matters 184
 
Chapter 14: The Essential Ingredient 187
 
The Growing Restaurant Illustration 187
 
Designed Structural Change 189
 
Planned vs. Imposed Structural Change 197
 
Blockbuster Video 200
 
Designed Revolutionary Change 203
 
Reengineering the Corporation 205
 
Chapter 15: The Art of the Possible 209
 
The Circles of Business Life 212
 
Evolving Capital Choices 216
 
Value vs. Momentum Investing 219
 
Defining a Financial Win 221
 
Some Final Thoughts 225
 
Glossary of Terms 227
 
The Value Equation Framework 231
 
Notes 237
 
Acknowledgments 2

Info autore

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.

Riassunto

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.

Dettagli sul prodotto

• Autori: Ch Volk, Christopher H Volk, Christopher H. Volk
• Editore: Wiley, John and Sons Ltd
• Lingue: Inglese
• Formato: Copertina rigida
• Pubblicazione: 31.05.2022
• EAN: 9781119875642
• ISBN: 978-1-119-87564-2
• Pagine: 272
• Categorie: Guide e manuali > Diritto, professione, finanze; Scienze sociali, diritto, economia > Economia > Management; Wirtschaft, Business & management, Klein- und Mittelbetrieb, Wirtschaft u. Management, Small Business & Entrepreneurship, Klein- u. mittelständische Unternehmen u. Existenzgründung