LOS ANGELES, Oct. 27, 2015 /PRNewswire/ -- Carl L. Sheeler, PhD, ASA, is a Managing Director at Berkeley Research Group, and BRG's Global Group Leader of Family Office and Business Strategies. A Strategic Value Architect. He authored Equity Value Enhancement ("EVE"): A Tool to Leverage Human & Financial Capital While Managing Risk (John Wiley & Sons, 2015). He takes management guru Peter Drucker's concepts to another level. Key Biscayne-based ultra-affluent family advisor Richard C. Wilson, and author of Creating, Operating, and Managing Investments of a Single Family Office, agrees: "No other publication dives into value creation like this text. I have hired Carl to address our $100M+ families, and if you read this book you will see exactly why and be glad you spent the time doing so."
Dr. Sheeler culls the following observations from 25 years and 1,200 engagements advising 8- to 10-figure companies: "I'm not saying I create unicorns. However, there is a reason why the results of most Private Equity Groups underperform publicly-traded index funds; why 80 percent of mergers and acquisitions do not achieve the synergies sought; why half of offerings are not consummated; why there are so few business plans and exit strategies and so many unfunded buy-sell agreements. And why owners burn out and private companies get stuck between $10 million and $25 million in sales. Most family business advisors know the answer. The short answer is 'under-utilized human capital.'"
Why is out-performance so elusive? Financial metrics like profits are familiar, but they seldom capture a company's intangible assets, like goodwill, which significantly accelerates enhanced value. Sheeler asks, "Where do you find Governance, Relationships, Risks, and Knowledge (GRRK) on financial statements? You don't." Governance influences strategy and culture. Relationships, and its cousin, Knowledge, are part of the business ecosystem of advisors, clients, vendors, and staff. Their collective role in risk management is essential. The lower the risks, the higher a company's value.
An example: Bob struggles for three years getting his business off the ground. His compensation is "outsized". He shuns outside advice. Jane reinvest hers profits accelerating her business' growth. Bob's business' annual growth is 3 percent because he chose gratification of a higher salary to fund his lifestyle. Jane's business' growth is double digits. In 20 years, Jane's company is worth tens of millions of dollars more than Bob's, because Jane sought growth in lieu of gratification. How does Bob make a course correction this late in the game? He leverages advice and considers it an investment. Bob can achieve 10 to 50 times, and even more, return with the right advisors. Equity Value Enhancement (EVE) addresses how Bob and his advisors can become value stewards and creators.
James M. Hill, Chairman of the Private Equity Practice Group of Benesch, a large, Midwest-based law firm, states: "Carl is someone I would love to work with again for his impressive and consistent ability to create value and help businesses grow." Lari B. Masten, Founder of Masten Valuation, LLC in Denver, shares: "Carl outlines the value drivers and best practices in value-added professional services where intangible assets are of primary concern. 'EVE' will become a must-have resource for any practitioner involved in the valuation and business consulting services area."
Equity Value Enhancement can be purchased at Wiley.com and major book retailers. Dr. Sheeler may be reached at carlsheeler.com.
Berkeley Research Group, LLC is a 900+ person firm Headquartered in Emeryville, CA with 30 global offices. It is a leading strategic advisory and expert consulting firm that provides independent advice, data analytics, authoritative studies, expert testimony, investigations, and regulatory and dispute consulting to Fortune 500 corporations, financial institutions, government agencies, major law firms, and regulatory bodies around the world. www.thinkbrg.com
Dr. Carl L. Sheeler, PhD, ASA is value creation and risk management professional having completed 1,200 midmarket and public company engagements. He has testified as a Court/IRS qualified expert on 170 occasions. A serial entrepreneur with four liquidity events, the proceeds from EVE will fund a 501(c)3 equine, canine and veterans suffering from post-combat PTSD therapies at a Colorado ranch.
Berkeley Research Group
SOURCE Carl Sheeler