{"product_id":"the-value-equation-isbn-9781119875642","title":"The Value Equation","description":"\u003cp\u003e\u003cb\u003eDiscover one of the surest means to create personal wealth by building a profitable business\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEvery now and then, a business book comes along that offers original insights and a fresh perspective.  In \u003ci\u003eThe Value Equation: A Business Guide to Creating Wealth for Entrepreneurs and Investors\u003c\/i\u003e, 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.\u003c\/p\u003e \u003cp\u003eReaders 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.\u003c\/p\u003e \u003cp\u003eChris 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:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eExplorations of the true value of using OPM (Other People’s Money) and capital stack variations to build and grow your company.\u003c\/li\u003e \u003cli\u003eAdvice on business assembly, growth, mergers, acquisitions, and corporate reengineering, including discussions of valuation multiples, common risks, and capital options.\u003c\/li\u003e \u003cli\u003eGuidance 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.\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eThe Value Equation\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1: Free Enterprise and Wealth Creation 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn the Beginning Is the Idea 12\u003c\/p\u003e \u003cp\u003eUnicorn Likelihood 13\u003c\/p\u003e \u003cp\u003eOdds of Success 14\u003c\/p\u003e \u003cp\u003eThe Six Variables 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2: Daymond John and the First Variable 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccountants vs. Entrepreneurs 21\u003c\/p\u003e \u003cp\u003eVariable #1: Business Investment 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3: The Capital Stack and Two More Variables 25\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Right Side 25\u003c\/p\u003e \u003cp\u003eOther People’s Money (OPM) 26\u003c\/p\u003e \u003cp\u003eVariables #2 and #3: Amount and Cost of OPM 29\u003c\/p\u003e \u003cp\u003eCost of Capital vs. Cost of Equity 30\u003c\/p\u003e \u003cp\u003eCapital Stack Assembly 31\u003c\/p\u003e \u003cp\u003eEquity Sourcing 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4: Three More Variables and Voilà! 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVariable #4: Sales 36\u003c\/p\u003e \u003cp\u003eVariable #5: Operating Profit Margin 36\u003c\/p\u003e \u003cp\u003eVariable #6: Annual Maintenance Capital Expense 37\u003c\/p\u003e \u003cp\u003ePutting the Six Variables Together 39\u003c\/p\u003e \u003cp\u003eGordon Growth Model 42\u003c\/p\u003e \u003cp\u003eEquity Valuation 43\u003c\/p\u003e \u003cp\u003eThe Miracle of Compounding 44\u003c\/p\u003e \u003cp\u003eDissecting Investment Returns 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5: The Value Equation 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEVA and EMVA 52\u003c\/p\u003e \u003cp\u003eMaking the V- Formula Even Simpler 54\u003c\/p\u003e \u003cp\u003eSolving for Other V- Formula Variables 56\u003c\/p\u003e \u003cp\u003eV- Formula Data Tables 58\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6: Business Model Evaluation 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSTORE Capital 62\u003c\/p\u003e \u003cp\u003eThe FAANGs 66\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7: Pulling the Corporate Efficiency Levers 75\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOperating Efficiency (O) 76\u003c\/p\u003e \u003cp\u003eAsset Efficiency (A) 80\u003c\/p\u003e \u003cp\u003eCapital Efficiency (C) 85\u003c\/p\u003e \u003cp\u003eSix- Shot Economics 88\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8: Choosing from Your OPM Options 89\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDesigning Your Own OPM 90\u003c\/p\u003e \u003cp\u003eLeasing 91\u003c\/p\u003e \u003cp\u003eCreating a Model to Evaluate OPM Options 93\u003c\/p\u003e \u003cp\u003eReal Estate as an Investment 98\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9: Opportunity Cost 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSome Opportunity Cost Illustrations 102\u003c\/p\u003e \u003cp\u003eCreating a Model to Evaluate Real Estate Lease Opportunity Costs 104\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10: The Final Form of OPM 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOPM Equity 116\u003c\/p\u003e \u003cp\u003eSustainable Growth Rate 118\u003c\/p\u003e \u003cp\u003eTaking on OPM Equity 120\u003c\/p\u003e \u003cp\u003eContents ix\u003c\/p\u003e \u003cp\u003eDeciding How Much OPM Equity to Use 121\u003c\/p\u003e \u003cp\u003eCreating a Five- Year Model 122\u003c\/p\u003e \u003cp\u003eSweetening the Deal 125\u003c\/p\u003e \u003cp\u003eOPM Equity Flavors 127\u003c\/p\u003e \u003cp\u003eOPM Equity Considerations 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11: A Look at Public Companies 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDetermining Public Stock Equity Returns 137\u003c\/p\u003e \u003cp\u003eWalmart 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12: Animal Spirits 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eElon Musk and Tesla 152\u003c\/p\u003e \u003cp\u003eStock Exchange Differences 154\u003c\/p\u003e \u003cp\u003eRestaurant Case Studies 155\u003c\/p\u003e \u003cp\u003eLone Star Steakhouse \u0026amp; Saloon 155\u003c\/p\u003e \u003cp\u003eBoston Chicken 158\u003c\/p\u003e \u003cp\u003eValue Investing 159\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13: Mergers and Acquisitions 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOPM Capital Options 167\u003c\/p\u003e \u003cp\u003eSolving for Equity and Company Valuation 170\u003c\/p\u003e \u003cp\u003eEBITDA Valuation Multiples 172\u003c\/p\u003e \u003cp\u003eM\u0026amp;A Risks and Rewards 173\u003c\/p\u003e \u003cp\u003eM\u0026amp;A Nightmares 176\u003c\/p\u003e \u003cp\u003eGE and M\u0026amp;A- Driven Growth 179\u003c\/p\u003e \u003cp\u003eFocusing on What Matters 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14: The Essential Ingredient 187\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Growing Restaurant Illustration 187\u003c\/p\u003e \u003cp\u003eDesigned Structural Change 189\u003c\/p\u003e \u003cp\u003ePlanned vs. Imposed Structural Change 197\u003c\/p\u003e \u003cp\u003eBlockbuster Video 200\u003c\/p\u003e \u003cp\u003eDesigned Revolutionary Change 203\u003c\/p\u003e \u003cp\u003eReengineering the Corporation 205\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15: The Art of the Possible 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Circles of Business Life 212\u003c\/p\u003e \u003cp\u003eEvolving Capital Choices 216\u003c\/p\u003e \u003cp\u003eValue vs. Momentum Investing 219\u003c\/p\u003e \u003cp\u003eDefining a Financial Win 221\u003c\/p\u003e \u003cp\u003eSome Final Thoughts 225\u003c\/p\u003e \u003cp\u003eGlossary of Terms 227\u003c\/p\u003e \u003cp\u003eThe Value Equation Framework 231\u003c\/p\u003e \u003cp\u003eNotes 237\u003c\/p\u003e \u003cp\u003eAcknowledgments 243\u003c\/p\u003e \u003cp\u003eAbout the Author 245\u003c\/p\u003e \u003cp\u003eIndex 247\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChristopher H. Volk\u003c\/b\u003e\u003cbr\u003e \u003c\/p\u003e\u003cp\u003e\u003ci\u003eVeteran Executive, Entrepreneur, Business Leader \u0026amp; Investor\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003eA 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.  \u003c\/p\u003e\u003cp\u003eTHE \u003cb\u003eVALUE EQUATION \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEvery now and then, a business book comes along that offers original insights and a fresh perspective. In \u003ci\u003eThe Value Equation: A Business Guide to Wealth Creation for Entrepreneurs, Leaders \u0026amp; Investors,\u003c\/i\u003e veteran executive, entrepreneur and investor Chris Volk delivers an engaging, straightforward explanation about how businesses work and provide wealth for entrepreneurs and investors.  \u003c\/p\u003e\u003cp\u003eThe 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 \u003ci\u003eThe Value Equation\u003c\/i\u003e is the foundation upon which most of the largest personal fortunes were built.  \u003c\/p\u003e\u003cp\u003ePraise for \u003cb\u003eTHE VALUE EQUATION\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Chris Volk is a walking, talking Capital Asset Pricing Model — only better. He’s a rare combination of successful entrepreneur and talented teacher. This book is a gift for anyone interested in business, from start-up dreamer to seasoned executive.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—R. Ted Weschler\u003c\/b\u003e Investment Manager, Berkshire Hathaway \u003c\/p\u003e\u003cp\u003e“\u003ci\u003eThe Value Equation \u003c\/i\u003eis a natural extension of Chris’ successful career-long exploration of his business formula for creating wealth. A must-read for every business leader, MBA student, entrepreneur or investor.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Amy Hillman, PhD\u003c\/b\u003e Arizona State University, Rusty Lyon Chair of Strategy and Professor, Department of Management \u0026amp; Entrepreneurship \u003c\/p\u003e\u003cp\u003e“In \u003ci\u003eThe Value Equation,\u003c\/i\u003e Christopher Volk presents a time-tested business model that teaches readers the financial dynamics of how great fortunes are built and how they can do it too. I highly recommend it!” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Daniel Burrus\u003c\/b\u003e Serial entrepreneur, and author of seven books including \u003ci\u003eThe New York Times\u003c\/i\u003e bestseller \u003ci\u003eFlash Foresight\u003c\/i\u003e and \u003ci\u003eThe Anticipatory Organization\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“When someone who has helped found and build companies that have created business and corporate wealth writes a thoughtful book about how to create business and corporate wealth you should read it! Chris has written a detailed and informative book which many can benefit from.” \u003c\/p\u003e\u003cp\u003e\u003cb\u003e—Larry Pitkowsky\u003c\/b\u003e Managing Partner, GoodHaven Capital Management\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990362144997,"sku":"NP9781119875642","price":29.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119875642.jpg?v=1761787517","url":"https:\/\/k12savings.com\/products\/the-value-equation-isbn-9781119875642","provider":"K12savings","version":"1.0","type":"link"}