Your company has a value, and it is measured by equity: what your stake in the business is worth. What drives that number is usually kept under lock and key by large companies and investors. This guide, written by Pablo Constantino, founding partner of Vispe Capital, opens that black box and shows how to grow equity through three pillars: growth, margin and risk.
What's inside
- The three pillars of equity: business scale, financial efficiency and risk factors.
- Real-world cases: Amazon's growth strategies and Walmart's financial efficiency.
- Risk strategies: diversification, professional financial management and corporate governance.
- The black box in detail: LTV, repeat purchases, revenue diversification, recurring revenue, product ladder, CAGR, TAM and growth equity on the growth side; EBITDA, net income, COGS, SG&A, cash generation, ROIC and EGPI on the margin side; and strategic and financial planning, governance, compliance and moat on the risk side.
- An equity target: how to define what your company should be worth a few years from now and work backwards.
- A three-step action plan: initial self-assessment, goal setting and a plan for each metric.
Who it's for
- Business owners who want to understand what really increases a company's value.
- Partners considering M&A, fundraising or succession in the medium term.
How to use it
Start with the self-assessment of each metric, set a target for each one and turn the targets into actions with an owner, a start date and a status.
