Читать книгу The Value Equation - Christopher H. Volk - Страница 20

Having solved for the required amount of equity, the question is, where does the equity come from? In the case of Daymond John, he was unable to get any OPM to start up FUBU, so he had to put up all the money himself in the form of equity by pledging a personal asset to the bank. He would later get OPM from Samsung and others as he grew FUBU into the success that it became.

As you might guess from our discussions up to now, there is a limit to the amount of equity you should invest. Equity is entitled to all the free cash flow remaining after paying the OPM obligations. The relationship of that free cash flow to the equity you invest, combined with the potential growth of that cash flow and the risks in the business, will determine whether you have the potential to create EMVA.

Equity does not have to all come from you. Most entrepreneurs I have known began their careers with little in the way of financial resources. After he became a financial success story, Daymond John landed a spot as a “shark” on the syndicated show Shark Tank. Each week, select entrepreneurs seeking capital to start or grow their business would pitch their offerings to Daymond and other sharks, all highly successful businesspeople, in the hopes of raising added equity without giving away too much of their companies. In essence, the sharks became OPM equity for business founders and brought with them added skills to help the companies (and their personal investments) succeed. With that said, for simplicity I will start with the notion that all equity is your own money, which I also call YOM. OPM equity will be a subject for later.