Why I wrote Equity Value Enhancement ("EVE") December 21, 2015

Talk about stretch goals....  First, it was serving as a combat officer in the US Marines; then developing land in Costa Rica; then running for U.S. Senate; then foster care.....  My passion has always been and continues to be serving.

While most consider what I do (what's this worth?) is who I am, I live, eat and breathe value creation (so much more than financial engineering).  This usually means execute a strategy to align advisors' and owners' expectations and efforts.

Ultimately, this is to achieve owner success to significance.  So, while I advise and litigate on matters of equity value, I wrote the John Wiley & Sons "EVE" to share the wisdom of hundreds of advisors and owners over the past 25 years.

But about stretch goals and serving... Since I don't know my expiration date (our 5 kids do!), I try to live my bucket list on a daily basis.  My next effort is to take the proceeds from this book and fund a 501(c)3 that rescues horses and dogs that will be used for equine and canine therapy in conjunction with helping veterans suffering from combat Post Traumatic Stress Disorder ("PTSD").

This will be part of the offerings at TwoBearsRanch.org (will also host spiritual and business retreats as well as other ranch operations).  The balance is to raise capital for this ranch as a form of impact investing.  If you want to read an advance ("draft") of the first few EVE chapters, go to www.carlsheeler.com; or order the book at Amazon.com (Amazon Link to Equity Value Enhancement); or learn more about the ranch and/or book by contacting me direct.  Cheers.

What is the difference in having $100,000 in personal assets & liabilities and $100,000,000?

The first response might be they're the same as each liability zeroes out the assets held.  Simply put the simple math is $0.  Is it?  Really.

Au contraire.  Those holding the notes are less likely to accelerate payment on $100 million as this is a big chunk of change to have to write down.  They may be more conducive for restructuring.  They might wish to swap equity for debt.

There is often confusion between value ("worth") and price (what's asked).  Further, when reported as a single number, the value is more so  central tendency versus shown as along a continuum.  The spread between "ask" and "bid" for common lesser assets tends to be in a narrower range.  Think cookie-cutter starter homes versus McMansions.  Since, value may be more intrinsic for larger assets like a portfolio of real property, risk and opportunity assumptions may differ sufficiently that there is adequate variance for "up-side" potential. 

Then there is another fundamental issue.  What is the work versus wealth income in the two scenarios?  The latter deals with income that is primarily generated passively.  The former is the income capacity of the party in debt.

Finally, what are the nature and the value of relationships of the party with $100 million in assets?  Can they access personal guarantees?  Can they convert some assets to more liquid capital with the help of others?

Sure, the fall is steeper for the $100 million, but it may be more gradual when options abound.  It is this simple example of the optics of risk and opportunity and through whose lens examination must be made.  What's your view?  :  )

Thanks for allowing me to share.  Carl

Posted on January 3, 2016 by Carl Sheeler.

Brooklyn-born, USMC Tank Officer & PhD Writes John Wiley "EVE" Book - It's about human capital

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When I'm on stand in court testimony I find the contradiction of my background to some is an opportunity for levity.  The combination suggests I might be able to deal with large figures; however, must remove my shoes and socks if the result is above ten digits.  This modest approach connects with the jury as while my background might be formidable, I don't take myself too seriously.  No ego.

Another leadership trait I learned in the military, as a corporate executive and entrepreneur is the notion of "skin in the game".  There is a significant difference between administrating, supervising, managing and leading.  If one is to lead, they must respect how to follow.  Further, they must be willing to sacrifice for the greater good when it's not convenient to do so.  Putting others first as a servant-leader is not naturally hard-wired even with service providers; yet, real value is garnered by others when we are willing to sacrifice. 

This raises issues about authenticity and leadership.  As professional service providers, we're often searching to find who needs our services in context of a client challenge.  This is akin to the belief, "when you're a carpenter with a hammer everything looks like a nail."  Juxtapose the issue to "what is this person looking for and if I'm not the right fit, can I source the provider who is?"  The latter mindset is one of a concierge.  A concierge versus a technician not only gets a seat at the desired table, but by solving an issue even when it does not immediately benefit the expenditure, earns the right to sit on the same side of the table as the party requesting assistance.  Now that is the type of leadership that builds deeper relationships and referrals.

Yet, nothing bruises self-confidence like a dose of reality.  It's hard to be a trusted advisor.  Love the work.  Usually like the clients.  So-so on those advisors who jockey-around protecting their "turf" and seek justification of my worth and theirs like jackals at a watering hole on the Serengeti.  My jugular gets exposed. 

Like literally millions of professionals before me, we studied hard and worked harder to get to a career zenith.  Yet, like drivers who are asked about the quality of their skills, we can't all be great.... the auto insurance industry claims prove otherwise.  Working hard enough to make a good living is not the same thing as making a measurable difference - the latter is exceptionalism.  Yet, a livelihood and a life well-lead are often seen as one and the same. 

The blocking and tackling between fellow solutions providers about fees or commissions for service - year over year - has suggested few see the value they bring (myself included) much less value others offer, which seldom has anything to do with what they charge.  Even if Equity Value Enhancement's ("EVE") 35 years of jaw-dropping experiences had thousands or millions of dollars worth of insights would the $85 list price have anything to do with its value?  (Under one's breath being "who has the time to read the thing.... business as usual....")

While I enjoy what I do, I am passionate about three things:  being a steward/"consigliore" ("chief-of-staff") to align and leverage professionals' knowledge and relationships; being well-compensated for my strategy, risk management and value creation advisory services; and, spending time with four-legged animals and down-to-earth, two-legged folks outdoors away from the rat paths many follow to and from home and work and places to dine and shop.

Why I wrote EVE Post   Amazon Book - EVE Link    Free Book Preview

So, the above sharing is to demonstrate one of hundreds of points within EVE, which is much more than financial engineering and reporting.  Rather, it is about the nexus of financial and human capital. 

As an example, while a conversation starter is often what you do, where you live/grew up or where you were educated... many see this as a way to determine social pecking order.  An alternative might be "How did you come to do what you do for a livelihood?  If you weren't doing this, what career path might you have selected?"  And, the ubiquitous "what keeps you up at night?" might be replaced by "What excites you about what you do?  What is your top challenge or opportunity (might receive a personal or business reply)?"

The point above is one path tends to be a "transactional" mindset.  The other tends to be relationship oriented.  The latter focus is on who one is as a person versus what they do for a living and are they a viable client.

While I'm not beneath pandering to sell EVE, I'm much more interested in personal and professional relationships that provide a win for clients, those with whom I collaborate and puts a dent in my student loan balance.

So, my jugular is exposed.  What say you?

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