The Intent
You want capital, but you do not want to lose control or future upside by agreeing to a poorly structured deal.
How I Solve It
I determine enterprise value using the 25 Factors, then assess how new capital changes Risk, Opportunity, and Return on Investment. Factor #4: ROI, Factor #11: Future Outlook, Factor #21: Minority Interest, and Factor #22: Special Interest Purchaser are central here.
The 5 Senses Inspection Report helps determine whether the investor will be a passive capital provider or an operational influence, which materially affects value.
Experience
It is vital because "What percentage should I give an investor?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You arrive at an equity structure that reflects true economic contribution and preserves long-term value.