Value Acceleration Method (VAM)

Goal:

Increase the value provided to the investor who will buy a share of the business.

Equation:

(Increase # of Customers x LTGP) ÷ Risk = Enterprise Value (EV)

1. Leadership Team in Place

• The leadership team runs the day-to-day operations independently.
• The owner can leave the business, and it will still maintain and grow.
• A good operator minimizes work across the company using the least amount of systems.
• Roles start lower (Manager) and scale up (COO).
• Team members need a growth mindset.
• A-Players are more expensive but significantly more valuable.
• Focus on expanding the “size of the pie” (incentives) rather than worrying about individual shares.

2. Marketing Without the Founder

• Train someone to handle marketing in the founder’s stead.
• Separate personal branding from business branding.

3. Delivery Without the Founder’s Face

• Use subject matter experts to handle different components.
• Non-compete clauses are effective when equity is involved.

4. Multiple Reliable Acquisition Channels