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HOW TO BE AN
ALPHA MALE
Michael Herlache MBA
Doctorate in Business Administration Candidate 2020
TABLE OF CONTENTS
ALPHA MALE METHODOLOGY:
Chapter 1: Alpha Male Methodology
ALPHA IN PHILOSOPHY:
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ALPHA IN FINANCE:
PERPETUITY SCIENCE:
Part I: Perpetuity Methodology
Chapter 50: Perpetuity Methodology
Part II: Standard of Living
Chapter 51: Standard of Living: Perpetuities & Investment
Part III: Perpetuities (Value)
Chapter 52: Perpetuities: Build or Buy
Part IV: Perpetuity Science (Value Creation)
Chapter 53: Business: The Science of the Perpetuity
FOUNDATIONS OF FINANCE:
Part V: Tracking Value (Accounting)
Chapter 54: Tracking Value with Accounts
Part VI: Analyzing Value (Finance)
Chapter 55: Analyzing Value with Finance
Part VII: Modeling Value
Chapter 56: Finance with Excel
Chapter 57: Financial Statement Modeling
Chapter
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87:
88:
89:
BUY-SIDE:
Part XXI: Buying a Perpetuity
Chapter 90: The Operating Model
Chapter 91: The Financial Buyer aka Private Equity (LBO)
Chapter 92: The Strategic Buyer aka Corporation (Merger)
PERSONAL FINANCE:
Part XXII: Cost of Living
Chapter 93: Passive Income vs. Expenses
Chapter 94: Target Countries
Part XXIII: Education
Chapter 95: Undergraduate
Chapter 96: Graduate
Chapter 97: Post-Graduate
Part XXIV: Career
Chapter 98: The Value of a Career
Chapter 99: Wall Street Career Paths
Part XXV: Portfolio Management
Chapter 100: Own Portfolio
Chapter 101: The Market Portfolio
Chapter 102: Alternative Investments
Part XXVI: GP/LP Portfolio Management
Chapter 103: Micro Venture Capital
Chapter 104: Lower Middle Market Private Equity
ALPHA IN HEALTH:
Chapter 105: Archetypal Body Types
Chapter 106: Developing an Archetypal Body Type
Chapter 107: The Alpha Diet
ALPHA IN LOVE:
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NEXT STEPS:
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PREFACE:
Seeming vs. Being Alpha
The majority of the alpha male books are concerned with how to seem
like you are alpha rather than how to actually be alpha. Thus, they speak
about social situations, body language, and framing. This text and Alpha
University are concerned primarily with how to be an actual alpha male.
Alpha University has created a methodology for doing so. This is the Alpha
Male Methodology:
Alpha in
Philosophy
Alpha in
Health
Alpha
Male
Alpha in
Love
Alpha in
Finance
Beta males do not add value and are focused on taking others value via
political (ingroup/outgroup bullying/threats) means.
the goal is not simply to diversify among asset classes, but concentrate
wealth in perpetuities. this is a paradigm shift between diversified
gambling on price volatility to principled investing. the principle of
investing is to invest only in perpetuities or risk free assets.
Copyright: Alpha University
www.UniversityAlpha.com
Reason (value):
Concentrate only on perpetuities and ignore everything else.
Philosophy: Objectivism, Alpha & Beta
Finance: Perpetuity Science
Health: Alpha workout & diet
Love: Alpha & Beta in Love
having a job and adding value are two entirely different things.
ALPHA MALE
METHODOLOGY
Chapter 1:
Alpha Male Methodology
This text and Alpha University are concerned primarily with how to be an
actual alpha male. Alpha University has created a methodology for doing
so. This is the Alpha Male Methodology:
Alpha in
Health
Alpha
Male
Alpha in
Love
Alpha in
Finance
ALPHA IN PHILOSOPHY
Alpha in
Philosophy
Alpha in
Health
Alpha Male
Alpha in
Love
Alpha in
Finance
Chapter 2:
High Value Models
In order to understand how to be an alpha male, one must first
understand value as it relates to the sexes. Namely, what is high value for
the male and female and what is low value for the male and female. We
use the High Value Model as shown here:
From the High Value Model shown above, a number of key questions arise
for the male:
From the High Value Model, a number of key questions arise for the
female:
After understanding what high value for the female is, the male naturally
asks, where can I find beta females?
As you can see, the level of feminism in the country has a negative
correlation to the level of value of the average female in the country. The
higher level of feminism means a lower level of value in the average
Remember, alpha is high value for the male and beta is high value for the
female so naturally, the alpha male being with a beta female is the ideal
relationship. For alpha male and beta females, this means avoiding
relationships with beta males and alpha females:
When the alpha male and beta female are together, this yields true love:
True love is the goal of all healthy human beings and is truly the purpose
of life. By following the methodologies in this book, we are going to be
you there sooner than you think!
In order to obtain true love and the alpha & beta way of life, you are
going to need to utilize reasoning. We can apply the High Value Model to
reasoning in the following manner:
From philosophy, we can then use the High Value Model to analyze
perspectives on individual sovereignty:
As you can see high value males and females see the individual as being
sovereign unto themselves and that their own self-interest is the highest
moral purpose of their lives. The biased see the sacrificing of anothers
self-interest as a necessary component to advance their agenda.
From perspectives on individual sovereignty, we can then analyze views
on the nature of true love:
As you can see, applying reason to true love means that love is selfinterest/ego-based and is truly synergistic meaning that the two come
together to yield something more than when they were separate. The
biased see love as requiring sacrifice which is not consistent with reason
and is thus not true love.
The biased see all aspects of life as zero sum meaning that for there to be
a winner there has to be a loser. They extend this to imply that the
winner therefore is a victimizer and the loser is thus a victim. The biased
extend this flawed reasoning to male/female relations (hence feminism),
to economics (hence Marxism), and politics (hence Progressivism):
Chapter 2:
What is an Archetype?
When we discuss high value, we are ultimately learning about what is
archetypal for a particular sex. The definition for archetype is:
The original pattern or model from which all things of the same kind are copied or on which they are based; a
model or first form; prototype.
Chapter 3:
Gender Archetypes
Continuing to extend the concept of the archetype to the sexes, we get
gender archetypes. Unfortunately, in the Western world, we have a
relatively new phenomena in the past few decades, the fall of gender
archetypes. Gender archetypes provide the ideal for both the male and
female and provide an initial distinction that guides human behavior. The
initial distinctions that are provided by gender archetypes is represented
in the Alpha & Beta Model taught at Alpha University. The Alpha & Beta
Model states that the gender archetype for the male is alpha (i.e.
masculinity) and the gender archetype for the female is beta (i.e.
femininity):
The distinctions in the Alpha & Beta Model are foundation and provide the
core to developing philosophically.
Chapter 4:
What is an Alpha Male?
Chapter 5:
What is a Beta Male?
A beta male is the opposite of the gender archetype for the male (i.e.
feminine). A beta male is synonymous with low value. Beta males do not
possess optionality. Beta males do not see their primary role as love with
a beta (feminine) female nor the building of a perpetuity.
Philosophy:
Primary method of influencing others is bias in the form of framing,
ingroup/outgroup bullying, censorship and histrionics
Beta males possess a biased philosophy (progressivism or moralism) and
model the opposite gender archetype (i.e. femininity)
See all aspects of life as zero sum meaning that for there to be a winner
there has to be a loser. They extend this to imply that the winner
therefore is a victimizer and the loser is thus a victim. They further
Chapter 6:
What is a Beta Female?
Chapter 7:
What is an Alpha Female?
An alpha female is the opposite of the gender archetype for the female
(i.e. masculine). An alpha female is synonymous with low value. The
alpha female does not see her main role in life as love with a male.
Philosophy:
Primary method of influencing others is bias in the form of framing,
ingroup/outgroup bullying, censorship and histrionics (i.e. victimizing
themselves to others)
Alpha females possess a biased philosophy (progressivism/feminism or
moralism) and model the opposite gender archetype (i.e. masculinity).
See all aspects of life as zero sum meaning that for there to be a winner
there has to be a loser. They extend this to imply that the winner
therefore is a victimizer and the loser is thus a victim. Furthermore, they
extend this flawed reasoning to male/female relations (hence feminism),
to economics (hence Marxism), and politics (hence Progressivism).
Chapter 8:
Where to Find Beta Females?
As a male, you are looking for high value rather than just any female. So
the natural question becomes, where are the beta females?
Due to the rise of feminism in the West, women in the West nolonger see
their primary role in life as love with a male. Since the alpha male sees
his primary role in life as love with a beta (feminine) female, this is a
major problem. Thus, we need to identify country by country the level of
femininity of the average female which we have done in the Female Value
Scale below:
As you can see, the level of feminism in the country has a negative
correlation to the level of value of the average female in the country. The
higher level of feminism means a lower level of value in the average
female due to the female adopting more masculine behavior and being
less feminine (not seeing her primary role in life as love with a male).
Feminism, being both masculiphobic and feminiphobic, is quite an
Orwellian word!
Ultimately we find beta females in countries that have cultures that
reinforce gender archetypes (i.e. objective cultures). Some of these
countries are:
Ukraine
Russia
Poland
Czech Republic
Japan
China
India
We can see the culture based upon what the country's media, education,
and politicians portray as heroic (ideals). In the West, the female being
alpha and the male being portrayed as beta is held out as heroic. Beta
females will not be found here. Women prioritize career over love in the
West. The cultures in the West (progressivism & feminism) are in fact
Chapter 9:
The Love Archetype
After we determine where the beta females are located, one has to
understand what the goal with a beta female is. This means asking the
question, what is the ideal relationship?
Remember, alpha is high value for the male and beta is high value for the
female so naturally, the alpha male being with a beta female is the ideal
relationship. For alpha male and beta females, this means avoiding
relationships with beta males and alpha females:
When the alpha male and beta female are together, this yields true love:
Chapter 10:
Behavioral Modeling
So what do with do with the High Value Model and the Alpha & Beta
Model?
We behaviorally model our own genders archetype!
In order to become successful, we model other successful people's
behavior. The best practice of behavior for a gender is called an
archetype. Gender archetypes are thus the ultimate guide for those
pursuing success. The Alpha and Beta behavioral model is a gender
archetype model allowing both the male and female to identify successful
behavior and eliminate low value behavior.
Behavioral models allow us to model successful behavior and obtain love
and significance. Modeling your gender archetype is ultimately the
decision to become successful in life. Alpha is success for the male. Beta
is success for the female.
The Alpha and Beta behavioral model also allows us to identify low value
behavior; namely the male being beta and the female being alpha. We are
to use the Alpha and Beta model and apply it to any situation. The key
question to ask is:
Am I being alpha or beta with my behavior?
Chapter 11:
The Value Spectrum
Chapter 11:
Alpha and Beta Model
The core model that we are going to refer to when behaviorally modeling
our gender archetype is the Alpha & Beta Model:
The alpha and beta behavioral model guides the male and female in
determining what behavior is ideal and what behavior is not ideal. Alpha
(i.e. masculinity) is ideal behavior for the male. Beta (i.e. femininity) is
ideal behavior for the female.
Alpha for the male (sex drive). The male should be striving towards alpha.
Alpha maximizes bioelectricity (i.e. pleasure) in the male.
Beta for the female (love drive). The female should be striving towards
beta. Beta maximizes bioelectricity (i.e. pleasure in the female.
Chapter 12:
The Purpose of Life
Remember, alpha is high value for the male and beta is high value for the
female so naturally, the alpha male being with a beta female is the ideal
relationship. For alpha male and beta females, this means avoiding
relationships with beta males and alpha females:
When the alpha male and beta female are together, this yields true love:
An alpha male and a beta female in love is the love archetype. This
archetype is what we should be striving towards. The love archetype
maximizes bioelectricity (i.e. pleasure) in both the male and female.
Alpha and beta in love will bring you more happiness than any amount of
money. It truly is the purpose of life.
Chapter 13:
Principles of Alpha & Beta
From the High Value Model and Alpha & Beta Model, certain principles
emerge. One can have principles without being a moralist/religious. The
following are the principles that form the foundation for the alpha and
beta philosophy:
The Principle of the Gender Archetype:
The male and the female should strive to be their gender archetype
The male should be alpha (i.e. masculine) and the female should be beta
(i.e. feminine)
The Principle of the Love Archetype:
Both the male and the female should strive toward the love archetype
The love archetype is monogamy between an alpha male and a beta
female
Being monogamous with a beta female is alpha
The Principle of Providing:
The male should provide for the female in finance and the female should
provide for the male in love.
The male should build a perpetuity in order to do so.
The Principle of Bioelectricity Maximization:
The male and female should strive to maximize bioelectricity rather than
money.
Bioelectricity for the male is maximized with health, love, and finance
(i.e. perpetuity + meaningful work)
The Principle of Love:
Copyright: Alpha University
www.UniversityAlpha.com
Chapter 14:
Ego
Ego is the highest moral purpose of ones life. The larger the ego, the
more attractive the male. Alpha is the male ego. Alpha is associated with
the sex drive and value drive. Beta is the female ego. Beta is associated
with the love drive and beauty drive.
Chapter 14:
Reason vs. Bias
Chapter 15:
The Natural Organizing of
Society
From the different egos of the male (alpha) and female (beta), there
comes the natural organizing of society. The natural organizing of society
is that high value males (i.e. alphas) have sex with high value girls (i.e.
betas) and the high value males (i.e. alphas) build/buy perpetuities to
support the high value girls. This is the Alpha & Beta way of life that
emerges from the Alpha & Beta philosophy.
There is no victim in the natural organizing of society. There are those
that simply have less value and those that have high value. It is upon
those with low value to do the work (behavioral modeling) to increase
their value.
Chapter 16:
Protecting the Natural
Organizing of Society
Instead of working to raise their value, the beta males and alpha females
sought to change the definition of what is valuable by attacking gender
archetypes, reason, and attempting to change the natural organizing of
society. The beta males and alpha females even created their own
philosophies including progressivism and feminism.
Chapter 17:
The Dominant Narrative
The dominant narrative is the high value males having sex with high value
females, building perpetuities, working out, and being reasoned. This is
the Alpha & Beta way of life. This way of life is under attack from the
biased, including moralists/religious and progressives that seek to do
away with the natural organizing of society (i.e. capitalism).
There is no victim in the natural organizing of society. There are those
that simply have less value (beta males and alpha females) and those that
have high value (alpha males and beta females). It is upon those with low
value to do the work (behavioral modeling) to increase their value.
The beta males and alpha females decided that instead of becoming high
value by becoming objective, behavioral modeling and building
perpetuities, they would organize to change the natural organizing of
society to reward beta males and alpha females. This is what has
happened in the West to corporate America, education, politics.
Chapter 18:
The Non-Dominant Narrative
The non-dominant narrative claims that there is a victim in the natural
organizing of society (beta males and alpha females) and that this
justifies changing the natural organizing of society via soft and hard
coercion. The non-dominant narrative is now propagated in
progressive/feminist and moralist families, education, media, corporate
America, and politics.
Chapter 19:
Dealing with Accusations from
Beta Males & Alpha Females
Since there are so many of them, one is bound to run into low value
people (i.e. beta males and alpha females). Since they are hostile to
reason especially when applied to the sexes, these beta males and alpha
females will often make accusations against alpha males and beta
females.
Alphas know how to remain unreactive, tease the frame, and continue
with the dominant narrative.
Alpha females and beta males are merely frame trolls.
Chapter 20:
Objectivism
1.
Objective reality nature, to be commanded must be obeyed.
Wishing wont make it so.
2.
3.
Self-interest man is an end in himself. Mans own happiness is
the highest moral pursuit.
4.
Right to life
2.
Right to property
3.
Is man free?
Chapter 21:
Epistemology, Reason &
Philosophy
Objectivism is the philosophy consistent with metaphysics. What then is
mans nature and means of human knowledge (epistemology)?
Mans epistemology is rooted in his ability to reason. Reason is his sole
means of forming concepts and interpreting the material from his senses.
Reason applies to all and everything. Nothing supersedes reason including
God, the state, or victims. No-one/nothing is exempt from reason.
Chapter 22:
Biased Philosophies
Philosophies not consistent with reason and metaphysics are known as
biased. The leading biased philosophies in the West are:
Progressivism
Feminism
Moralism
It is important for the male to develop philosophy consistent with reason
and metaphysics.
Biased Philosophies:
Progressivism/Feminism:
Progressivism advocates behavior (i.e. advocates the girl becoming more
alpha and the male becoming more beta). Progressives portray the female
being alpha as heroic and the male being beta as heroic. You can look at
how media, universities, and politicians portray beta males as heroic. A
cultures heroes convey its ideals. The progressive schema is also hostile
to the value schema and sees a system designed around value (i.e. the
maximization of pleasure) as unfair.
Moralism:
Moralism is another biased philosophy as it is not consistent with the
reason and metaphysics in that the moralist advocates sin and a
personal God that enforces morality. As we know, there is no sin in
nature. We also know from science that God is the infrastructure that
allows the multiverse to exist (dark matter).
Chapter 23:
Reasoned Behavior vs. Biased
Behavior
There is such a thing as objective behavior and biased behavior. Objective
behavior is consistent with reason, the philosophy of objectivism, and the
philosophy of alpha & beta. Biased behavior is not.
A male should be a heterosexual that is an engineer in some capacity
building perpetuities, being reasoned, having sex with a beta female, and
working out. Objective behavior for the male is called alpha.
A female should be a heterosexual female that is feminine and loving,
reasoned, pleasing her man, and working out. Objective behavior for the
female is called beta.
Biased behavior for the male is called beta. Biased behavior for the
female is called alpha.
Chapter 24:
The Reason Reward Cycle
The reality (i.e. the metaphysics of the universe) rewards reason and
reasoned behavior. The philosophy consistent with metaphysics is known
as objectivism. Philosophy of objectivism and behavior consistent with
this is known as objective behavior. Objective behavior receives
objectively positive outcomes. Objectively positive outcomes create
objective happiness.
Reasoned
Rewards
Reason
Reasoned
Communication
& Behavior
Reasoned
Philosophy
Chapter 25:
Value & Values
Values are objective and are consistent with reason.
Using reason, we identify which phenomena has high value and that which
has low value. Related to the sexes, that which has value in the first
place are individuals aligned with their genders archetype. Other
phenomena that has value includes the love archetype, perpetuities, and
the natural organizing of society/objective culture.
Chapter 26:
Intellectually Dominant vs
Intellectually Submissive
In addition to being dominant in finance, love, and health, an alpha male
is dominant philosophically (i.e. objective). That is what we cover in the
Alpha Philosophy portion of this text and the How to Be an Alpha Male
course.
Dominant philosophically has to do with the male or females knowledge
and application of the philosophy of objectivism and the philosophy of
alpha & beta. Girls can be knowledgeable philosophically and still be
beta. Alpha males teach their girls to be knowledgeable philosophically in
order to protect them from progressivism/feminism and moralism.
Being intellectually submissive has to do with the male or females
advocacy of the philosophy of bias including progressivism/feminism and
moralism. Philosophical submissiveness conveys low value for the male
and female. These individuals would include the beta male and the alpha
female. Another tell regarding those that are non-dominant
intellectually/philosophically are those that advocate that there is no
objective reality.
Chapter 27:
High Value vs Low Value
The objective truth is that some people have higher value and some
people have lower value. Those with higher value are reasoned and model
their genders archetype. Those with lower value are biased and do not.
Those with the lowest value model the opposite sex's gender archetype.
A female does not get more value by being alpha, she gets more value by
being beta. A male does not get more value by being beta, he gets more
value by being alpha.
Society naturally organizes around high value. Progressives/feminists and
moralists call this unfair. High value males (alpha) get sex from high value
females (beta). High value males build perpetuities (career is a
perpetuity) and use them to support high value females. This social
system is called Capitalism. There is nothing unfair about this. It is only
low value males (beta) and low value females (alpha) that are unwilling to
be reasoned and model their gender's archetype that complain about this.
Alphas do not associate with low value people.
Chapter 28:
Clarity vs Agreement
Remember that alphas do not display certainty seeking behavior and are
comfortable operating in a context of tension. A wise Jewish man once
said, seek clarity rather than agreement. Alphas seek clarity rather
than agreement with people. So when you disagree with someone, that is
ok. You would rather be clear than to try to supplicate to agreement with
them. They will respect you more and you will respect yourself more for
clarity than simply agreeing with them trying to seek certainty.
When someone does not agree with you regarding the Alpha & Beta
model, you do not have to convince them. Simply explain that, A wise
man once said seek clarity rather than agreement. It is better to clearly
understand each others position. Most times, those that disagree with
gender archetypes and the Alpha & Beta model are those that have their
identities tied to a purely subjective view of the world. They do not want
to live in a world with an objective reality and actually assess their own
level of value, let alone do the work to become high value. This purely
subjective view of the world can be viewed as a rationalization as a result
of cognitive dissonance driven by ones realization that they are low
value.
Chapter 29:
Reasoned Culture vs Biased
Culture
Objective cultures both advocate and espouse reason, the gender
archetypes and the love archetype. Objective cultures exist in the East
(ex. Eastern Europe, South Asia, East Asia). Biased cultures are hostile to
reason, gender archetypes and the love archetype. Biased cultures exist is
the West (ex. USA and Western Europe). Biased cultures portray the
woman being alpha as heroic (i.e. high value) and the male being beta as
heroic (i.e. high value).
As you will observe in the Culture Model on the following page, philosophy
drives behavior which in turn drives culture. When you put in bias as an
input you get biased behavior (process) and ultimately a biased culture
(output). Biased culture is characterized by zero sum meaning that life is
seen as transactional with winners and losers in every transaction and
thus a victimizer and victim in every interaction including male/female
relationships. As such, true love is not seen as the goal and is even viewed
as not existing. This sort of culture is not conducive to value creation and
actually will destroy value.
A reasoned/objective culture is characterized as being synergistic where
relationships translate into additional value being created which are more
than the sum of the parts including male/female relations. True love is
seen as the goal and is strived for by all. This culture is conducive to
value creation.
Chapter 30:
Femininity vs Feminism
Girls need to understand that womens rights and feminism are entirely
different things. Womens rights come from nature and are protected by
reason. Feminism comes from the philosophy of Marxism and views the
world in terms of victimizer/victims especially in male/female relations.
To them, relationships are zero sum meaning that there is a clearly
defined winner and a clearly defined loser. Thus, they view true love as
something that is not real and ultimately a negative thing for a woman.
Chapter 31:
Protecting Your Girl from
Feminism & Moralism
It is important for males to educate their women philosophically to avoid
bias. The bias that the male should warn his woman about is known as
progressivism, feminism and moralism. Teach your woman reasoning
skills and help her identify what bias looks like (help her to make the
distinction). There is no "wrong" or "sin" or victim in male/female
relations and sex is natural and healthy. Women love sex and want sex all
the time, just like men.
Chapter 32:
Standards
Pickup either assumes that all girls are equally valuable and has no
standards or claims that their value is entirely determined by their looks.
PUAs typically refer to attractive females as HB and a number as if her
looks entirely determine her value. This is simply not the truth. Girls that
are beta (i.e. feminine) have high value. Girls that are alpha (i.e.
masculine) have low value despite how physically attractive they are. If
you find yourself settling for sex with low value women (i.e. alpha
females), I suggest that you raise your standards.
Before you get in field, it is crucial to get your intentions and standards
defined.
Males should look for high value (i.e. beta) females and stay away from
low value (i.e. alpha) females.
In the USA and Western Europe (i.e. the West), we have a biased culture
that is hostile to reason, gender archetypes and the love archetype.
Biased cultures portray women being alpha as heroic (i.e. high value) and
men being beta as heroic (i.e. high value).
So what do we do as a male in the West?
Make the effort to find high value women globally in the East. In the East,
reason, gender archetypes and the love archetype are alive and well. We
must utilize the internet and social networks to connect with these beta
females and build a real relationship. It will be lasting.
You do not have to settle for low value women.
Chapter 33:
Relationship & Search Costs
When you are in a relationship or married to a beta female, you have
more time to build perpetuities and to work out which would otherwise
be spent trying to find sex (relationship eliminates search costs) if you
were simply pursuing pickup. Marriage to a beta female entirely
eliminates search costs.
The benefits of variety that come with pickup do not outweigh the costs
associated with search costs, especially for those living in a country with
a biased (feminist) culture. When you live in a country with a feminist
culture, search costs almost become infinite within the geography of the
country. One must search in different countries in order to find a beta
female.
For men living in countries with objective cultures, search costs are
extremely low and pickup becomes more viable. However, relationship
with a beta female is the preferred route as there are benefits that are
not available to those just pursuing pickup such as being in love, cuddling,
working out together, enjoying meals together, listening to music
together.
Chapter 34:
What Should a Male Look for in
a Girl?
Beta (i.e. femininity)!
Possesses reason and alpha & beta philosophy:
Advocates and espouses gender archetypes (alpha for the male and beta
for the female) and the love archetype
Avoid those with bias including those with a:
Moralist/religious (the concept of sin and non-scientific view of God)
Progressive schema (hostile to reason, gender archetypes and the love
archetype)
Prioritizes love (i.e. a relationship with a male) over career. Love with
the male is her primary focus.
Feminine body type with height 50 to 59 and weight 95 lbs to 130 lbs.
Enjoys wearing feminine clothing such as dresses and skirts.
Chapter 35:
What Should a Girl Look for in a
Male?
Alpha (i.e. masculinity)
Possesses reason and alpha & beta philosophy:
Advocates and espouses gender archetypes (alpha for the male and beta
for the female) and the love archetype
Avoid those with bias including those with a:
Moralist/religious (the concept of sin and non-scientific view of God,
hostile to reason)
Progressive (hostile to reason, gender archetypes and the love archetype)
Corporate finance/investment banking/investment management. Either
studying finance or working in finance
Game (cocky, teasing, sexual). Guys that know and implement the
positive tension model in the pickup phase and in relationship.
Male should have a mectomorph or mesomorph body type:
Mectomorph body type: Cannot put on fat and can put on some muscle
mass. Muscle is entirely fast twitch.
Mesomorph body type: Can put on muscle mass without fat without limit.
Muscle is a combination of fast twitch and slow twitch.
Bodybuild
Workouts that include the major masculine muscle groups including:
bench, arms, shrugs, back/lats
Chapter 36:
Bioelectricity & Evolution
In order to become an alpha male, it is crucial to understand human
behavior and its drivers. Humans, while possessing free will are ultimately
driven by pleasure in the form of bioelectricity. Bioelectricity is the cause
of pleasure for and governs the behavior of organic life.
After the needs of survival are met (i.e. food, shelter, water, clothing),
bioelectricity guides humans towards more pleasure. Organic matter
moves towards more bioelectricity (i.e. pleasure) automatically without
choice.
The human brain and body evolved to conduct more pleasure in the form
of bioelectricity. Human behavior can be explained by the effort to obtain
more and experience bioelectricity.
The nature of the mind is bioelectricity in the brain. The brain acts as the
infrastructure conducting the bioelectricity (ie mind).
The earliest organic life found that bioelectricity was increased when they
integrated with other organic life and worked as one. Bioelectricity acted
as a coordinating mechanism allowing the new life form to operate as one
and continue evolving to maximize bioelectricity. The cells that make up
the human are guided by bioelectricity individually. The precursors to
human life were guided by bioelectricity and found out that working
together created the infrastructure for the maximum conduction of
bioelectricity. The human brain evolved to conduct more bioelectricity
and bring maximum pleasure to the human.
Evolution is towards the maximization of bioelectricity. The male and
female evolved to maximize bioelectricity and what evolved was the
human ego (alpha for the male, beta for the female). Human progress is
towards the maximization of bioelectricity; it can be said that evolution is
a selfish phenomena.
Chapter 37:
Value & Pleasure
As mentioned, bioelectricity not only facilitates reasoning (i.e. the mind)
but is also pleasureful. The human ego and pleasure are intertwined. The
reward for creating value and being valuable is bioelectricity. This speaks
to the relationship between value and pleasure.
The key to being high value is to be bioelectricity causing (i.e. value
creating). The key to this is being the gender archetype in health, love,
and finance (discussed in Alpha and Beta in Love presentation). One can
do this especially with game as it spikes and maintains high levels of
bioelectricity in the female.
Implications:
Attraction is not a choice. Bioelectricity drives human behavior.
High value males maximize their own bioelectricity through relationships,
finance, and health. Being high value means maximizing your own
bioelectricity and the bioelectricity of others.
Alpha is high value (bioelectricity maximizing) for the male and beta is
high value (bioelectricity maximizing) for the female.
There is a difference between being high value and being rich. High value
means that you maximize bioelectricity in yourself and others (alpha for
male and beta for female). Rich people are not necessarily high value.
There is a distinction between money and value. Those that only pursue
money are not high value even if they have more money than those that
are high value.
The key question that all should ask is, "how do I become high value?"
The answer is alpha for the male and beta for the female.
Chapter 38:
Attraction
Attraction is the spiking and sustainment of bioelectricity (i.e. pleasure).
Attraction is not a choice. Attraction is a result of being in the presence
of a gender archetype. One can demonstrate the gender archetype
physically or behaviorally. Demonstrating higher value is done by
demonstrating alpha for the male. This amounts to behaving in a
confident and cocky manner coupled with teasing and playful behavior.
Chapter 39:
Positive Tension Model
By using the Positive Tension Model we are intentionally trying to create
positive tension with the girl that is the source of attraction and which
allows for the creation of love. We are not going to break the tension but
merely satisfy the tension through sex and repeat as shown in the model.
Chapter 40:
Game
Introduction
Game has to do with creating and sustaining peak levels of bioelectricity.
Game is the ability to generate attraction in female and escalate
physically to sex.
The best model to learn game is the Positive Tension Model. The Positive
Tension Model involves cocky & teasing communication with a girl to spike
her bioelectricity and then not breaking the tension but escalating the
positive tension by escalating physically, handling logistics where you can
pursue sex, and ultimately having oral sex with her and then penetration.
Positive Tension Model
Using the Positive Tension Model we are intentionally trying to create
positive tension with the girl that is the source of attraction and love. We
are not trying to build rapport with the girl but rather we are trying to
playfully break rapport with her. We are not going to break the tension
but merely satisfy the tension through sex and repeat as shown in the
model.
Conclusion
Build and maintain positive tension which means spiking bioelectricity
(i.e. pleasure) in the girl. Lead this bioelectricity towards love and turn
into a lifetime of Alpha and Beta in Love. Game should continue in the
relationship with playful, sexual and direct communication daily.
Chapter 41:
Game in Relationship
Game through the Positive Tension Model is essential to maintaining
attraction and passion in a relationship. Simply because you are in a
relationship with a girl does not mean that game stops, in fact game gets
taken to a new level as you begin to integrate more cuddling and I love
you's.
Fulfill your dreams of love and sex. Any time you think of sex or want sex,
be sexual and speak sexually with your girl. This is what alpha males do.
Get her talking about how much she wants your dick and how much she
loves your cum. She will get more comfortable discussing sex openly with
you the more sexual you are with her. Always be moving your encounters
with women towards sex.
Become an attractive man. The type of man a woman wants is a sexual
man that leads the interaction. Don't make her lead. Move your
encounters with women towards sex.
Chapter 42:
Marriage: The Sex Perpetuity
The purpose of pickup is to build a sex perpetuity with a girl. Men that do
not take the time to build relationships with women are not building sex
perpetuities. The ultimate sex perpetuity is known as marriage. The male
simply has to be sure that she is a beta female. Marriage with an alpha
female is not the goal.
Chapter 43:
The Horniness Principle
The alpha male is constantly horny and so is the girl. It is evolutionarily
hardwired into the male and female and bioelectrically automatic.
Horniness is not a choice but is automatic and a part of everyday life for
both sexes. Bloodflow through the genitals is a part of existence. This
constant bloodflow through genitals means continuous horniness as the
nature of life. The girl wants sex all time but relies on the male to initiate
and lead.
Chapter 44:
Assume Horniness
Alphas have a high sex drive and want sex all the time. Some men were
born with lower sex drives than others. For those that find themselves
having sex infrequently, one should assume that they are horny even if
they do not currently feel it and then take action to satisfy that
horniness. In doing so you condition yourself to be horny more often and
in doing so increases your sex drive. Simply by consciously choosing
horniness, you can make yourself more horny. As a rule of thumb, you
should either be busy doing work (i.e. career, building perpetuities,
working out) or you should be escalating physically with your girl towards
sex. When the logistics are not right for sex, you should be communicating
your horniness to your girl via text, phone call, or directly telling her.
Alphas sexualize all interactions with their women and their women love
them for it. Assume horniness and become alpha.
Chapter 45:
A Day in the Life of an Alpha
Male
For those that desire to become an alpha male, it is important to have an
idea or a mental picture of what the life of an alpha male actually looks
like.
7:00 am I wake up naked next to beta female wife. Cuddle and have sex
using morning wood. We tell each other I love you while I am inside of
her.
8:00 am Naked wife is making breakfast. Check work email for IOIs from
buyers as well as appointments for the day. Running a boutique M&A shop
means that time is spent winning engagements as well as working with
buyers on existing engagements to move them towards making and offer
and ultimately closing. There are three calls for the day; one at 11 am
with a potential seller. The business has approximately $10M in revenues
as well as $1.5M in EBITDA. Multiples for businesses that are under $25M
in total enterprise value (TEV) typically get done at a 5x to 5.5x EBITDA
multiple. The two other calls are in the afternoon at 1pm and 2pm and
they are both with lower middle market PE firms that are interested in
the firms engagements. Eat breakfast with the wife. She made eggs, irish
oatmeal, fresh fruit, and black coffee. Delicious.
9:00 am Put workout clothes on and bring wife to the gym inside the
building. Workout for an hour doing bodybuilding, working on the major
masculine muscle groups. After strength training begin to run on the
treadmill. Running generates a natural high. The wife loves to see me
bodybuild; it turns her on.
10:00 am Back to the condo and I strip my wife naked. We take a shower
together and wash each other.
Chapter 46:
The Alpha Code
The alpha male does not cheat on a beta female but is free to be with
other women if the female is not beta. The key is to determine if the
female is beta or not. If she is not beta, then the male should simply
enjoy sex with her and then spend his time looking for a beta female.
When he finds a beta female he should be exclusive with her and enjoy
alpha and beta in love.
Chapter 47:
The Alpha & Beta Lifestyle
The alpha & beta lifestyle is what we should all be working towards. The
alpha & beta lifestyle is characterized by an alpha male and beta female
being married, working out together daily, having sex together daily, the
male having a perpetuity, and both being reasoned/objective
philosophically.
Chapter 48:
Winning the Game
Winning the game means achieving the Alpha & Beta way of life by
becoming alpha, finding and building love with a beta female, and
building one perpetuity with passive income larger than your expenses.
Investing is not an end itself but is towards maximizing quality of life as
represented by owning a perpetuity that generates passive income greater
than ones expenses. The most efficient way to win the game is through
syndicating the perpetuity yourself.
The highest quality of life is the alpha and beta lifestyle. When you have
achieved this, you have won the game.
ALPHA IN FINANCE
Alpha in
Philosophy
Alpha in
Health
Alpha Male
Alpha in
Love
Alpha in
Finance
Perpetuity Science
Perpetuities to create
2.
3.
4.
II.
III.
Part I:
Perpetuity Methodology
Foundations
of Finance
Buy-Side
Perptuity
Build-Side
Sell-Side
Chapter 49:
Perpetuity Methodology
This text and Investment Banking University are concerned primarily
with how to become an actual investment banker. Investment
Banking University has created a methodology for doing so. This is
the Perpetuity Methodology:
Foundations
of Finance
Buy-Side
Perptuity
Build-Side
Sell-Side
Part II:
Standard of Living
Chapter 50:
Standard of Living: Perpetuities
& Investment
The Goal
To increase standard of living without sacrificing quality of life.
Perpetuity
Building Perpetuities
The building of perpetuities is known as being on the build-side;
commonly referred to as entrepreneurship.
Buying Perpetuities
The buying of perpetuities is known as investment or being on the
buy-side.
Selling Perpetuities
The selling of perpetuities is known as the sell-side.
Part III:
Perpetuities
Chapter 51:
Perpetuities: Build or Buy
The Goal
The goal is to build/buy at least one perpetuity in order to maximize
standard of living while not sacrificing quality of life.
Types of Perpetuities
Perpetuities can be created from companies that possess some aspect
of recurring revenue and automated work processes associated with
product creation.
Commodity
i. Durables
ii. Non-durables
II.
Platform
i. Digital
ii. Physical
III.
Content
i. Educational
ii. Entertainment
IV.
Service
i. Analysis
ii. Allocation
iii. Engineering
iv. Logistics
v. Management
vi. Advocacy
vii. Relationship
V.
Infrastructure
i. Private
1.
Real estate
ii. Public
Part IV:
The Science of the
Perpetuity
Chapter 52:
Business: The Science of the
Perpetuity
Introduction to Business
Business is the science of the perpetuity (buy vs. build)
Business as Science
To maximize returns, one either invests in building perpetuities in the
form of positive NPV (net present value) projects or one invests in the
market portfolio when there are no positive NPV projects. If an
Business Methodology
When referring to business, we are referring to the science of the
perpetuity and we can break this down further into a methodology:
I.
II.
III.
2.
FOUNDATIONS OF
FINANCE
IV.
V.
VI.
Part V:
Tracking Value
(Accounting)
Chapter 53:
Tracking Value with Accounts
Value
The formula for value is:
Get D&A from SCF (CF from Operations) and CAPEX from SCF (CF
from Investing)
Part VI:
Analyzing Value with
Models (Finance)
Chapter 54:
Analyzing Value with Models
Analyzing Value
Strategics, financials, and entrepreneurs undertake investment with
the expectation of NPV & IRR. They accept projects that have positive
NPV and IRR higher than the cost of capital. They actively find and
structure positive NPV projects and then match financial products to
them.
The positive NPV project is ideally a perpetuity with the value of the
business being the perpetuity value:
Modeling
After getting valuation, we can then model the different actions we
can take in a capitalist economy to increase the valuation of the
strategic, financial or entrepreneurial firm.
Modeling in Excel
Part VII:
Modeling Value
Continuing deeper into the field of finance we now discuss the actual
work associated with understanding the value of a perpetuity. The
work is done by modeling the perpetuity in Excel.
Chapter 55:
Finance with Excel
Implement financial analysis using the tool for financial analysis, Excel
Valuation process
))
Cash in the financial model is a plug. The plug is so that the balance
sheet balances.
Cash = total liabilities and equity current assets net fixed assets
The plug is the balance sheet item that guarantees the equality of the
future projected total assets and future projected total liabilities and
equity. Every financial model has a plug and the plug is almost always
cash, debt, or stock.
Cash is King
Capital Markets
Copyright: Alpha University
www.UniversityAlpha.com
Cost of Capital
Calculate IRR of financing alternatives to determine cost of capital
=IPMT( )
To calculate the interest portion of the payment of debt
=PPMT( )
To calculate the principal portion of the payment
VIII. Financing Alternatives: Direct Comparison
IRR of differential cash flows tells you the cost of the option
Minimum NPV
Hurdle rate (IRR)
You are using NPV and IRR to make investment decisions but you
need the discount rate. The discount rate is associated with the
financing decision
Value of Equity
The value of equity is the present value of all future dividends
Sources & Uses
Uses
Sources
=STDEVP( )
Determine risk measure known as beta and plug this into CAPM to
get the discount rate of equity. Derive the cost of debt and then
calculate WACC to get the discount rate of the firm.
=Varp( )
To get variance of returns
=Stdevp( )
To get standard deviation of returns
=Covar( )
To get covariance between two sets of returns
=Correl( )
To get correlation between two sets of returns
Are the returns correlated? If no, then add security to the portfolio
(i.e. diversify)
The efficient frontier is the set of all portfolios that are on the
upward-sloping part of the graph starting with the minimum variance
portfolio (i.e. the market portfolio). Choose the portfolio that is on the
efficient frontier.
Only relevant risk is systematic risk since the investors will all be
diversified
Only relevant risk is systematic risk since the investors will all be
diversified
Only relevant risk is systematic risk since the investors will all be
diversified
VIII. Security Market Line & Investment Performance Continued
Investment performance:
Excess Return
Excess return is the investments spread over the one year treasury
(i.e. risk free rate)
WACC is the discount rate based upon the capital structure of the
investment
Chapter 56:
Financial Statement Modeling
b.
c.
2.
3.
a.
Best case
b.
Base case
c.
Worst case
d.
Disruption case
4.
5.
a.
b.
LIBOR is the base that banks use to price spread their loans to make
money (called L)
c.
6.
Project IS and BS & two items on SCF (D&A and CAPEX (before gross
PPE on BS))
a.
7.
8.
a.
9.
a.
b.
c.
BUILD-SIDE
Part VIII:
Perpetuity Analysis
Chapter 57:
Perpetuity Science
Technology
2.
Media
3.
Education
4.
Business Services
Perpetuity Analysis
II.
Perpetuity Building
III.
Perpetuity Management
IV.
Perpetuity Exit
Chapter 58:
Market Analysis
GDP
Industry Spend
Chapter 59:
Value Chain Analysis
General
Industry
Sub-sector
Sub-sector by product
Chapter 60:
Gap Analysis
General
Industry
Sub-sector
Sub-sector by product
Chapter 61:
Product/Platform Analysis
Base
Mods
Part IX:
Perpetuity Building &
Management
Chapter 62:
Perpetuity Building
To begin our study of the perpetuity, we can observe the formula for
the perpetuity:
Perpetuity Value = CF / r
Syndication
II.
Job Shop
III.
Perpetuity
IV.
Growing Perpetuity
V.
Diversified
The key here is taking a concept that has a large enough total
addressable market and turning it into a single sale as represented by
PMT. This demonstrates product market fit between the minimum
viable product/platform and allows the owner to invest additional
time/energy/resources into turning the syndication into a perpetuity.
The syndications value to the owner will be related to the NPV/DCF
value, however, since there is an inefficient market for syndications,
the value is going to be discounted at a high rate, in the 80% to 100%
Sales:
EBITDA:
Discount rate: 80%
Implied beta: 12.2
Multiple: NA
Perpetuity reliance on owner: 10/10
Sales: <$5M
EBITDA: <$500k
Discount rate: 50%
Implied beta: 7.6
Multiple: 3x-4x EBITDA
Perpetuity reliance on owner: 7/10
1.
Project/job shop
2.
Perpetuity
3.
Growing perpetuity
Sales:
EBITDA:
Discount rate: 6%
Implied beta: 1
Multiple: 11x-13x EBITDA
Perpetuity reliance on owner: 0/10
Chapter 63:
Perpetuity Management
Valuation Drivers
Valuation
Growth or Restructuring
The CEO should endeavor to have his company in the public markets
since the largest multiples are applied in valuation
Copyright: Alpha University
www.UniversityAlpha.com
When a public company, the CEO has to both maximize the intrinsic
(DCF) value of the company and manage the expectations of the
financial market
Planning & control system should be put in place to monitor the NPV
of every business unit and summed to get the NPV of the
corporation. Economic profit (i.e. NPV) targets set annually for next
three years, progress monitored monthly and managers
compensation tied to economic profit against these targets
Value Metrics
Metrics are to drive decisions and guide all employees toward value
creation.
Cash Flow
Cash flow equals the operating profits of the company less the net
investment in working capital and fixed assets to support the
companys growth.
1.
a.
i.
ii.
iii.
b.
i.
Mark the milestones toward their aspiration with value linked targets
ii.
Target share price (i.e. double every three, four or five years)
iii.
iv.
2.
a.
i.
b.
i.
c.
i.
1.
2.
3.
3.
a.
b.
i.
Hard areas:
Structure (who reports to whom), Decision rights, people (key jobs),
and coordination mechanisms (how do things get communicated or
done)
c.
Soft areas:
i.
d.
e.
4.
a.
b.
c.
d.
The metrics associated with value drivers are called key performance
indicators (KPIs) (ex. Capacity utilization or customer retention rate)
e.
f.
g.
Each business unit should have its own key value drivers and KPIs
h.
i.
5 to 10 KPIs
j.
5.
a.
i.
ii.
iii.
c.
Review performance
i.
ii.
iii.
6.
a.
b.
c.
CEOs get TRS, MVA; Business unit manager gets Economic profit;
Functional manager gets operating profit and ROIC; Mid
level/frontline gets operating value drivers
Perpetuity Lifecycle
1.
a.
i.
ii.
iii.
iv.
b.
Note historicals
c.
2.
a.
b.
c.
3.
a.
Use either cash flow multiple (i.e. EBITDA multiple) or growth rate
method (i.e. Gordon Growth method)
b.
4.
Calculate results
a.
b.
c.
Interpret results
Discount rate in two forms; cost of equity and cost of debt. Combined
on balance sheet so discount rate is weighted average cost of capital
WACC is the required rate of return for the overall enterprise. This is
simply a weighted average of the required rates of return for each of
the different sources of capital (equity and debt)
Bu = BL / [1 + D/E x (1-T)]
BL = Bu x [1 + D/E x (1-T)]
Chapter 64:
Valuation Methodologies
1.
2.
a.
b.
c.
d.
e.
Notes:
The better the company, the higher the multiple and the better
valuation you get.
3.
a.
b.
c.
d.
e.
Notes:
20% to 25% control premium paid with the transaction multiple being
an implied one based upon the valuation.
4.
a.
b.
c.
Cost of equity:
Rf = 10 year treasury
Market risk premium = Rm Rf. Refer to Ibbotson. Ultimately this is
S&P returns over 70, 80, or 90 years
Beta = Levered beta of comps to unlevered median and mean of
comps (unlevered beta); should be .5 to 2.5; 2 year to 5 year betas
(taking out capital structure and relever to actual capital structure.
With beta, we are putting capital structure on unlevered beta mean
and median of comps to calculate WACC of own company.
d.
e.
Notes:
Need the valuation date; this determines stub year fraction (i.e. period
left in the year). Stub year fraction investor does not have claim on
Creating value:
$ dollars of value increased by
Changing multiple on valuation
Decreasing the discount rate
Chapter 65:
Framing Valuation
Chapter 66:
The Market for Perpetuities
As finance emerges, so too does the market for the perpetuity. The
market for the perpetuity at its initial stages is inefficient, but as it
moves through the stages of a perpetuity, the market becomes more
efficient. You can observe the coinciding cost of capital move from
almost 100% going all the way down to 3.5%.
You can observe the decreasing discount rate for the perpetuity as
the perpetuity moves through the phases of the perpetuity.
SELL-SIDE
Part X:
Perpetuity Exit
Valuation is a range
Strategics and financials establish their filter criteria (hurdle IRRs for
financial and minimum EPS increase for strategics) and test targets
against this filter
Chapter 67:
Investment Banking
Valuation Football Field and the Midpoint is the final valuation of the
company.
Determine:
NPV and IRR for financial in LBO
EPS change and balance sheet effects for strategic in merger M&A
Junior Banker:
Industry coverage
Comps and comp transactions (where are multiples)
Valuation
Mid Banker:
Operating model creation + tailored to transaction client (LBO or
Merger)
Manage M&A process
Senior Banker:
Revenue center
Personal contacts at firms to win engagements
Part XI:
The Middle Market
Chapter 68:
The Middle Market
Because of the wide range of company sizes within the definition, the
middle market can be further broken down into the following:
Part XII:
M&A Multiples
Chapter 69:
M&A Multiples
Since the investment banker will most likely be starting in the lower
middle market or middle market, it is important to have a strong
understanding of the multiples in the M&A marketplace in general
and then in your sector and sub-sector. The following are 2016 M&A
multiples from the data provider, Pitchbook (Morningstar), that you
can use initially. Here are the EBITDA multiples for transactions in the
lower middle market:
In this chart, you will see the average time that is it taking for deals to
close. You will notice that the majority of transactions get done in the
5-9 weeks and 10-14 weeks timeframe:
Next, the following is a chart that depicts the % of deals getting done
with some aspect of an earnout, meaning portion of the purchase
price contingent on future performance of the business:
Part XIII:
Origination
Chapter 70:
Origination Methodology
1.
2.
3.
4.
5.
6.
7.
If cannot, develop buyer list and pitch M&A idea to them in a buy
side capacity clarifying that the target is not running a process and
that you do not have the mandate but that you have been in talks
with their CEO/owner. The target is willing to listen to reasonable
offers
Best,
Michael
John,
Alright. I'll notify you when I receive the offers. What is your
expectation regarding the price of your business?
Best,
Michael
John,
Alright. Lets sit down and discuss next steps. Does Monday afternoon
at 1pm work for you?
Best,
Michael
Sell side engagements get an RBCA. For buy side engagements, make
a buyer list of the largest likely buyers including public companies
then contact the head of M&A at these companies and ask:
Brian,
Best,
Michael
After hearing back from the heads of M&A, let them know that the
seller has requested that we represent the buyer and that the buy
side fee will be 1.5%. You then ask them to accept in writing to the
fee and once they do you can tell them the target name and then
proceed to contact the seller and let them know that there is interest
and ask what multiple range they are targeting for a sale. From there
you send an advisor NDA and request financials. After giving
financials to buyer, the company is assessed and a valuation range is
determined and an IOI with this valuation range is submitted to the
seller.
During the phone call you will introduce yourself and state that you
work on behalf of private equity firms in locating quality cash flowing
Copyright: Alpha University
www.UniversityAlpha.com
Price:
Revenue:
Net Income:
Meeting:
Meeting:
During the meeting you will introduce yourself and state that you
work on behalf of private equity firms in locating quality cash flowing
companies and that is how you found their company. From there you
will state that you want to get an initial understanding as to the price
of the business. After the price of the business is found, ask how the
business performed last year (revenue and net income). If this
information is already known, you can move straight to giving the
seller the signed NDA and explaining that any information that we
receive is confidential and will not be shared without the approval of
the business owner. Next you discuss the structure of the
engagement that you are requesting a non-exclusive relationship
whereby you only get paid when your buyers purchase the company.
Buyer,
After reviewing the teaser and summary financials, please submit your
initial indication of interest (IOI) and we will set up a buyer/seller
meeting.
Best,
Michael
Industry interest:
Questions (that the buyer has):
Multiples that buyer is seeing or that they typically do:
Chapter 71:
Mandate/Target Matching
Methodology
1.
2.
3.
4.
5.
6.
7.
8.
Have a call with the financial and/or strategic buyer and then make
the formal introduction to the CEO/owner and have a buyer/seller
meeting
Chapter 72:
Deal Structuring
II.
III.
Seller financing
IV.
Earn out
V.
Chapter 73:
M&A Process
Strategic
Competitors - synergies
Indirect Competitor
Financial
Hybrid strategic financial buyer with asset in the sector
Pure financial
For deals that are $500k earnings and above, BizBuySell.com and
DealNexus.com should be used to find buyers. For deals below $500k
in earnings, only BizBuySell.com should be used.
The Teaser
The teaser will contain an overall financial profile: three years of
historical revenue and EBIT/EBITDA and at least two years of
projected revenue and EBIT/EBITDA
Indicate type of transaction
The NDA
The NDA in a sell side engagement is a unilateral NDA meaning that
only one side has to not disclose confidential information
The CIM
Copyright: Alpha University
www.UniversityAlpha.com
Digital deal rooms are now used (ex. Firmex and V-rooms). Due
Diligence is usually 60 to 90 days
Executive summary
II.
III.
IV.
Vertical I
b.
Vertical II
c.
Vertical III
II.
Discuss valuation range (I believe that you can get $_____, providing
that these things hold true)
III.
IV.
Tax consequences
V.
Executive summary
II.
III.
Growth opportunities
IV.
Industry overview
V.
Company overview
a.
Overview
b.
c.
d.
Operations
Copyright: Alpha University
www.UniversityAlpha.com
Organization
Financial overview
2.
Valuation
3.
Recast financials
4.
5.
Buyer qualifications
6.
Marketing
7.
Management coaching
8.
9.
Auction Process:
100-150 companies initial call
4 months; 6-12 months actual
Initial call interest, then send teaser
If interested after teaser, sign NDA, send CIM
Controlled Sale:
10-12 companies
4 months, 6-8 months actual
Closed Negotiation:
1-2 parties
1-3 months
Regarding valuation, the investment banker will form the story which
is either:
I.
Growth story
II.
Buyer Qualification:
Finalize to list of 50, bankers begin making phone calls
Marketing:
Sign NDAs, send CIM
Weekly calls with client to update (buyer list updates)
Pitching:
To win new business. Pitching can take years. This is ultimately deal
sourcing with MDs calling on clients for 10-15 years.
II.
Industry overview
III.
IV.
V.
VI.
Process
VII.
Buyers/investors
Chapter 74:
Running the Boutique
Investment Bank
When first starting the M&A firm, majority of time should be spent
originating sell side mandates. Once the investment banker gets to 20
sell side mandates, one can ease up on origination and transfer those
responsibilities to analysts and associates hired as interns which then
turn into full time analysts/associates.
Realistically it will take a year to a year and a half to close your first
deal if you are just starting out in M&A. If you have been in M&A and
have a book of business, the timeframe shortens to the typical time it
takes to close a deal which is shown below.
Chapter 75:
Investment Banking Deliverables
I.
II.
Pitchbook (origination)
III.
Chapter 76:
Coverage
The investment banker will often focus on a product group (i.e. M&A)
and/or an industry (industrials, healthcare, technology). Proper
coverage comes in the form of maintaining a coverage index for a
sector and its sub-sectors which is broken down in the following
manner:
I.
Industry macroeconomics
a.
Industry spending
b.
Sub-sector spending
c.
II.
Sub-sector index
b.
c.
d.
e.
f.
III.
b.
c.
d.
e.
f.
IV.
Appendix
a.
b.
c.
d.
e.
Chapter 77:
Index Building & Analysis
General (Dow)
Industry
Sub-sector
Chapter 78:
Financial Data Sources
If you are at a larger investment bank, you will have various paid data
sources at your disposal. These include:
1.
Bloomberg
2.
CapitalIQ
3.
FactSet
For those that are not at a larger bank, one can use the free sources
of financial data including:
Yahoo Finance
Google Finance
Yahoo Finance and Google Finance get their EBITDA numbers from
CapitalIQ and their analyst EPS consensus estimates from there as
well.
Investment banks typically do not want you to use the EBITDA from
CapitalIQ, Bloomberg, FactSet and would prefer that you spread the
comps individually to get to EBITDA.
We are ultimately using the financial data sources to build and
maintain our various indices associated with our coverage group.
Copyright: Alpha University
www.UniversityAlpha.com
Chapter 79:
Industry or Sector Newsletter
Chapter 80:
Industry or Sector Report
Chapter 81:
Rolodex Building
BUY-SIDE
Part XVII:
Buying a Perpetuity
Chapter 82:
The Operating Model
Chapter 83:
Financial Buyer aka Private
Equity (LBO)
There are over 4,000 financial buyers in the world. They command
over $2 trillion in capital and are broken down into the following
categories:
Leveraged buyout
Growth
Mezzanine
While each of these private equity firms have different hurdle rates,
each perform an LBO analysis to determine whether or not to
purchase a perpetuity.
Regarding ideal private equity targets, the private equity firm will
specialize in a few sectors and does not want a lot of discretionary
CAPEX. They will however do maintenance CAPEX. They will look to
rework AR and AP contracts.
The PE group will work with LevFin, SLF & DCM within a given
investment bank with SLF syndicating the loans and then selling the
paper. The IB charges a financing fee, advisory fee, and syndication
fee.
1.
2.
3.
4.
5.
Notes:
Banks want 20% to 30% for financial sponsor. This depends on the
industry; 50% necessary for technology company. Bank looks at
leverage ratios and interest coverage to determine which covenants
to put in place.
Transaction fees:
Financing fees SLF & DCM
IB fees M&A
Legal Lawyer
Other fees
Retained earnings: Old RE gets wiped out and new RE starts negative
due to financing fees.
Reverse LBO: If I have a hurdle rate of x%, what is the max price I can
pay for the asset? Also get an implied entry multiple.
PE interview:
Interview 1 Experience
Interview 2 You have 2 hrs to build an LBO model and tell me
whether or not to invest
Chapter 84:
Strategic Buyer aka Corporation
(Merger)
While each of these strategic buyers have different hurdle rates, each
perform a merger analysis to determine whether or not to purchase a
perpetuity.
Merger Analysis:
1.
2.
3.
4.
5.
Notes:
Merger Modeling
2 operating models put together with synergies
Dont want to give away more than 50% of your synergies in your bid
PART VI:
HOW TO BECOME A
BILLIONAIRE
Chapter 85:
How to Build a Unicorn
Buy-side. Sell-side. Build-Side?
We have all heard about the buy side and the sell side of finance, but who
is actually building the perpetuities. What if there was a third side of
finance? What if there was a build-side, with individuals possessing IB/PE
and platform development talents to use in building perpetuities?
Shouldn't that be the logical course of events with individuals taking their
knowledge of valuation and industries and putting them to use in building
the next unicorns?
So what would this look like? IB/PE professionals joining startup labs such
as the one I run called Founders Ventures (www.VCFounders.com) to work
on concepts that have a legitimate chance of being a unicorn. Rather than
leaving one's job to join a questionable startup, join a startup lab and be
directly involved in the build-side, even if it part-time. The work of the
build-side is syndication.
Unicorn Methodology
Concept:
Market size:
Total addressable market:
UNIT ECONOMICS (PROFITABILITY) OF THE COMPANY:
a.
b.
c.
d.
1.
2.
IDENTIFY TOTAL ADDRESSABLE MARKET SIZE (REVENUES PER
YEAR):
1.
a.
b.
c.
d.
To build a unicorn, the REVENUE PER USER PER MONTH SHOULD BE 30% to
50% higher than COST PER USER PER MONTH. This means that when you
scale, you do so extremely profitably. These sort of margins are what
billion-dollar consumer/internet companies get including Facebook and
Linkedin.
Size of market means how many revenues per year is generated by that
industry. You want to achieve $100M recurring revenue per year of that
market in 7 years. What % is that? This means a billion dollar company.
The tactical question though is can you get to $100m in ARR in 6-7 years if
everything goes really well?
Even if your nominal TAM is high, my #1 recommendation if you are preMSP (Minimum Sellable Product) is to do your own model to get to $100m
in 7 years.
Any product that can really sell at a $100m ARR in 7 years has a billion+
TAM, by definition.
1.
MODEL PLATFORM ARCHITECTURE IN TERMS OF BASE PHP
PLATFORM AND MODS ONTO IT
Database(s)
1.
BUILD DATABASE OF 25 HIGHEST PRIORITY USERS OF PLATFORM
AND COLLECT EMAIL, NAME, NUMBER
Self-Advocacy
Activation
SCREEN SHARE WALK THROUGH WITH THE HIGH PRIORITY USER AND SHOW
THEM HOW IT WORKS AND GET THEM TO LOGIN BY THEMSELVES
Utilization
SEND USER THE INVOICE FOR USING THE PLATFORM. FEE SHOULD BE
MEMBERSHIP FEE BASED UPON STANDARD MARKET FEE.
Scale
Exit
Cases:
M&A Nexus:
Concept: M&A network and marketplace connecting strategic and financial buyers
to advisors representing middle market companies for sale.
Market size: $1.4 Trillion (capital marketplace)
Total addressable market: $900 Billion (M&A transactions in non-tech companies)
UNIT ECONOMICS (PROFITABILITY) OF THE COMPANY:
a.
IDENTIFY COST OF ACQUISITION PER CUSTOMER (CAC): database cost/#
of companies in database = $3000/12,000 = $.25
b.
IDENTIFY COST PER USER PER MONTH: server cost/total users =
$150/12,000 = $.02
c.
IDENTIFY REVENUE PER USER PER MONTH: revenue per year/12 =
$2,000/12 = $166.66
d.
IDENTIFY LIFETIME VALUE PER USER (LTV): revenue per year x life
expectancy = $2,000 x 60 = $120,000
MODEL PLATFORM ARCHITECTURE IN TERMS OF BASE PHP PLATFORM AND MODS
ONTO IT
DATABASE OF 25 HIGHEST PRIORITY USERS OF PLATFORM AND COLLECT EMAIL,
NAME, NUMBER. .XLS DATABASE NAME:
SELF-ADVOCATE TO THE 25 HIGHEST PRIORITY USERS OF PLATFORM AND NOTIFY
THEM THAT YOU WILL BE SENDING THEM VALUE AND THAT THIS IS THEIR
ACCOUNT TO CLAIM IT GIVING THEM LOGIN CREDENTIALS. .DOC MESSAGE FILE
NAME:
SCREEN SHARE WALK THROUGH WITH THE HIGH PRIORITY USER AND SHOW
THEM HOW IT WORKS AND GET THEM TO LOGIN BY THEMSELVES
USER UTILIZES PLATFORM BY THEMSELVES FOR A TRIAL PERIOD OF TIME (3 TO 6
MONTHS)
FundLinked:
IDENTIFY COST PER USER PER MONTH: $2.40 (Facebook data discounted
c.
IDENTIFY REVENUE PER USER PER MONTH: $3.80 (Facebook data
discounted 80%)
d.
IDENTIFY LIFETIME VALUE PER USER (LTV): Revenue per user per month x
12 x life expectancy = $3.80 x 12 x 60 = $2,736
MODEL PLATFORM ARCHITECTURE IN TERMS OF BASE PHP PLATFORM AND MODS
ONTO IT
DATABASE OF 25 HIGHEST PRIORITY USERS OF PLATFORM AND COLLECT EMAIL,
NAME, NUMBER. .XLS DATABASE NAME:
SELF-ADVOCATE TO THE 25 HIGHEST PRIORITY USERS OF PLATFORM AND NOTIFY
THEM THAT YOU WILL BE SENDING THEM VALUE AND THAT THIS IS THEIR
ACCOUNT TO CLAIM IT GIVING THEM LOGIN CREDENTIALS. .DOC MESSAGE FILE
NAME:
SCREEN SHARE WALK THROUGH WITH THE HIGH PRIORITY USER AND SHOW
THEM HOW IT WORKS AND GET THEM TO LOGIN BY THEMSELVES
USER UTILIZES PLATFORM BY THEMSELVES FOR A TRIAL PERIOD OF TIME (3 TO 6
MONTHS)
SEND USER THE INVOICE FOR USING THE PLATFORM. FEE SHOULD BE
MEMBERSHIP FEE BASED UPON STANDARD MARKET FEE.
BUILD DATABASE OF 26-50th HIGHEST PRIORITY USERS OF PLATFORM AND
COLLECT EMAIL, NAME, NUMBER
IDENTIFY 3 TO 5 MOST LIKELY STRATEGIC BUYERS OF YOUR PLATFORM. REACH
OUT TO THE PERSONALLY WHEN YOU HAVE $100M IN RECURRING REVENUE AND
Copyright: Alpha University
www.UniversityAlpha.com
IDENTIFY COST PER USER PER MONTH: $2.40 (Facebook data discounted
c.
IDENTIFY REVENUE PER USER PER MONTH: $3.80 (Facebook data
discounted 80%)
d.
IDENTIFY LIFETIME VALUE PER USER (LTV): Revenue per user per month x
12 x life expectancy = $3.80 x 12 x 60 = $2,736
MODEL PLATFORM ARCHITECTURE IN TERMS OF BASE PHP PLATFORM AND MODS
ONTO IT
DATABASE OF 25 HIGHEST PRIORITY USERS OF PLATFORM AND COLLECT EMAIL,
NAME, NUMBER. .XLS DATABASE NAME:
SELF-ADVOCATE TO THE 25 HIGHEST PRIORITY USERS OF PLATFORM AND NOTIFY
THEM THAT YOU WILL BE SENDING THEM VALUE AND THAT THIS IS THEIR
ACCOUNT TO CLAIM IT GIVING THEM LOGIN CREDENTIALS. .DOC MESSAGE FILE
NAME:
SCREEN SHARE WALK THROUGH WITH THE HIGH PRIORITY USER AND SHOW
THEM HOW IT WORKS AND GET THEM TO LOGIN BY THEMSELVES
USER UTILIZES PLATFORM BY THEMSELVES FOR A TRIAL PERIOD OF TIME (3 TO 6
MONTHS)
SEND USER THE INVOICE FOR USING THE PLATFORM. FEE SHOULD BE
MEMBERSHIP FEE BASED UPON STANDARD MARKET FEE.
BUILD DATABASE OF 26-50th HIGHEST PRIORITY USERS OF PLATFORM AND
COLLECT EMAIL, NAME, NUMBER
NationLinked:
IDENTIFY COST PER USER PER MONTH: $2.40 (Facebook data discounted
c.
IDENTIFY REVENUE PER USER PER MONTH: $3.80 (Facebook data
discounted 80%)
d.
IDENTIFY LIFETIME VALUE PER USER (LTV): Revenue per user per month x
12 x life expectancy = $3.80 x 12 x 60 = $2,736
MODEL PLATFORM ARCHITECTURE IN TERMS OF BASE PHP PLATFORM AND MODS
ONTO IT
DATABASE OF 25 HIGHEST PRIORITY USERS OF PLATFORM AND COLLECT EMAIL,
NAME, NUMBER. .XLS DATABASE NAME:
SELF-ADVOCATE TO THE 25 HIGHEST PRIORITY USERS OF PLATFORM AND NOTIFY
THEM THAT YOU WILL BE SENDING THEM VALUE AND THAT THIS IS THEIR
ACCOUNT TO CLAIM IT GIVING THEM LOGIN CREDENTIALS. .DOC MESSAGE FILE
NAME:
SCREEN SHARE WALK THROUGH WITH THE HIGH PRIORITY USER AND SHOW
THEM HOW IT WORKS AND GET THEM TO LOGIN BY THEMSELVES
USER UTILIZES PLATFORM BY THEMSELVES FOR A TRIAL PERIOD OF TIME (3 TO 6
MONTHS)
SEND USER THE INVOICE FOR USING THE PLATFORM. FEE SHOULD BE
MEMBERSHIP FEE BASED UPON STANDARD MARKET FEE.
BUILD DATABASE OF 26-50th HIGHEST PRIORITY USERS OF PLATFORM AND
COLLECT EMAIL, NAME, NUMBER
Chapter 86:
The Four Habits of Billionaires
1.
Research/Read Understand many industries that are ripe for
disruption. Which have TAMs (total addressable market) of at least $1
billion?
2.
Valuation - Building a DCF/EBO (Equity Build Out) to understand
NPV & IRR of the concepts with billion-dollar addressable markets. Which
concepts get you to $100M ARR (annual recurring revenue in 7 years)?
3.
Syndication - Building a Minimum Viable Product (MVP) for each
of the concepts
4.
Self-advocacy - PPC, SEO, Quora, custom database, industry
events, social media, PR to get initial traction and scale from there
Chapter 87:
Total Theme Monetization
Total theme monetization is an approach to building a portfolio of
synergistic companies around one value theme.
For example, for the value theme, Investment Banking, I have utilized the
total theme monetization strategy as displayed here:
University: Investment Banking University
(www.InvestmentBankingU.com)
Book: Investment Banking, Middle Market M&A, Execution, Financial
Modeling & Valuation
Platform: M&A Nexus (www.MnANexus.com)
Designation: Chartered Investor (CI) (www.CharteredInvestor.org)
Transaction: AltQuest Group (www.AltQuest.com)
Chapter 88:
Venture Capital Valuation
Startup Valuation
The startup valuation method is a standard DCF with an individual
adjustment of the beta coefficient that is applicable to the startup.
So we ultimately want to build a financial statement model (with 10 to 15
years projection period) and then a DCF on top of it.
The adjusted beta is put into the CAPM (Capital Asset Pricing Model) to
get to cost of equity (rE). The cost of equity (rE) is the IRR of the startup
required by the investor. Since startups are completely financed with
equity, the cost of equity is the cost of capital.
Risk free rate is government bonds and treasuries (ex. 4.1%)
Market risk premium (ex. 5.5%)
Company tax rate (ex. 35%)
Required IRR by startup investors (Angel, Micro VC, VC) is 39.5%
(Achleitner 2004). Backing into the beta coefficient implied by this cost of
equity yields a beta of 6.4. For startups with a lower business risk, this
6.4 number can be adjusted lower. A premium or discount to the beta
coefficient is determined by the risk profile as determined by the
financial statement model and management team.
VC Perspective on Valuation
The NPV is calculated at a 39.5% IRR (implied beta of 6.4) and is the
incremental wealth increase at t=0 by taking on an opportunity. The goal
is to buy as much of this NPV (% of the company) for as little capital as
possible
PERSONAL FINANCE
While finding and building love with a beta female as well as building
a perpetuity and maintaining an alpha body type, the male is to
manage his personal finances. Namely, he is to budget his cash flow
to be able to support his girlfriend/wife as well as fund his
perpetuitys cash flow needs.
PART V:
COST OF LIVING
Chapter 89:
Passive Income vs. Expenses
One should build a perpetuity whose monthly income exceeds one's level
of monthly expenses. This phenomena is a part of the Alpha & Beta
lifestyle or way of life.
Regarding expenses, one should be aware of their monthly expenses in
their current country as well as developing countries in order to plan for
an early retirement (i.e. Living off of the perpetuity) in a target
developing country (ex. Ukraine, China, Thailand).
Once one's perpetuity exceeds the expense level of the developing
country, one can enjoy the Alpha & Beta lifestyle overseas with the
chosen beta female.
Chapter 90:
Target Countries
Our target countries are those where the cost of living is 3x to 4x less
expansive to live in the downtown of a major metropolitan city than it is
to live in the downtown of a major metropolitan city in the United States
of America. For example, if the cost of living in downtown Miami for one
year is $45,000 per year, the cost of living in Kiev, Ukraine is $15,000 per
year.
Larnaca, Cyprus
Flight: $232 one way from Kiev
Apartment: $310 per month
Residency:
Bangkok, Thailand
Flight: $500 one way from Kiev
Apartment: $500 per month
Residency:
PART VI:
EDUCATION
Chapter 91:
Undergraduate
One should take university very seriously and strive for the highest grades
possible. This will have a material effect on your career and thus earning
potential.
For example, in my undergraduate at the University of Massachusetts,
Amherst, I received a 3.8/4.0 and was cum laude.
Chapter 92:
Graduate
After undergraduate, one should pursue graduate school as quickly as
possible and prepare for a knowledge working career. Graduate school has
become the standard for those that wish to be knowledge workers be it
finance, law, medicine, or engineering.
For example, I received a scholarship to Texas A&M directly after my
undergraduate due to my high grades and received an MBA in Finance.
Chapter 93:
Post-Graduate
After you have established your career in a knowledge working field and
have begun syndicating on the side, I suggest that you formalize your
research efforts as you come up with various theses regarding cases for
disruption in various industries. You will ultimately end up publishing
these cases in various texts. It is not necessary, but continuing your
formal education is always a good idea. I suggest getting a Doctorate in
your career field part time from a University that is low cost. In doing so
you will earn the credential without having to sacrifice your career/cash.
For example, I have just gotten accepted/started at California Southern
University in their Doctorate of Business Administration program.
PART VII:
CAREER
The first perpetuity that is usually built by the alpha male is his career
which should be in a knowledge working field. In order to building a
career, it is important to have a solid education along with strong
performance from a GPA perspective.
Chapter 94:
The Value of a Career
How much is your career worth?
Lets do some calculations to show your career worth now and in the
future: From the ages of:
Chapter 95:
Choosing a Career
Your choice of graduate school has ultimately decided your career path.
As mentioned, this should be some form of knowledge working that will
allow you to build a career perpetuity.
For example, my choice of career was finance so I pursued an MBA in
finance. While in graduate school, I founded the boutique investment
bank, AltQuest Group, which has allowed me to get origination,
mandate/target matching, and deal structuring experience usually only
reserved for Directors and Managing Directors at investment banks.
AltQuest Group has become a perpetuity for myself. We average 10 sellside mandates at any given time and close 2 to 3 deals per year. When
possible, I would suggest that those desiring a career in investment
banking get origination experience at an early age and build a book of
business.
Chapter 96:
Wall Street Career Paths
Letter to a Future Worker on Wall Street
Though the nature of financial system continues to change in order to
reflect the demands/needs/priorities of the society at large, there will
continue to be a wide breadth of opportunities available for those looking
to pursue a financial career on Wall Street. From investment banking to
private equity to research, there are numerous careers available for those
willing to venture to the East Coast.
There are however, certain skill sets and knowledge bases that remain
critical to your successful performance in each of the prospective careers.
This guide seeks to match the relevant skill sets and knowledge bases to
the given Wall Street career in addition to providing you with a general
overview of the respective career path.
Furthermore, in addition to the pertinent technical skills and knowledge,
Wall Street employers look for fit in their potential employees. This
means that they are looking to understand why it is that you are uniquely
qualified to work in their environment.
Now more than ever, each future worker on Wall Street must
differentiate themselves in order to gain an edge in the hypercompetitive
recruitment process that defines Wall Street. This means not only
possessing the humility, integrity, and tireless work ethic which
characterizes the American Spirit, but ultimately mastering the skill sets
and knowledge bases required by the given career.
It is our sincere hope that this document may guide your efforts in
determining your career path on Wall Street and the acquisition of its
respective compulsory knowledge and competencies.
Michael Herlache
Alpha University
Know how the sector is segmented and where the company you
are meeting with fits within the industry
PRIVATE EQUITY
Like investment banks, private equity funds seek to raise capital for
entities in need of funding. However, the method by which they raise and
place funds is entirely different. Instead of accessing the pubic markets to
broker the transaction, private equity firms first raise a pool of money
(i.e. fund) by tapping wealthy individuals and institutions looking for
above-average returns. After raising a fund, PE firms will then take
controlling stakes in target companies utilizing moderate to high levels of
debt to finance the remaining purchase price. This allows PE firms and
their investors to lever up their returns by taking advantage of the
favorable tax treatment of interest on debt financing. When the purchase
price of a target is primarily funded through debt, the transaction is
said to be a leveraged buy-out (LBO).
Often, one may hear venture capital and private equity mentioned in the
same breath. Venture capital refers to firms solely focused on the funding
and development of new ventures, while private equity firms choose
mostly to allocate their capital to established companies.
Corporate Finance
ALPHA IN HEALTH
Alpha in
Philosophy
Alpha in
Health
Alpha Male
Alpha in
Love
Alpha in
Finance
Chapter 97:
Archetypal Body Types
Fitness increases levels of bioelectricity in a sustained manner. Working
out itself increases bioelectricity and then there is a sustained higher
level of bioelectricity permanently.
Alpha in health means obtaining and maintaining a body type that is
between mectomorph and mesomorph with the ideal being no fat and all
fast twitch muscle.
Girls are also the most interested in mectomorph and mesomorph body
types in males evolutionarily speaking.
It is important for the male to obtain a mectomorph or mesomorph body
type in order to maximize his own bioelectricity as well as maximize
attraction with females.
Chapter 98:
Developing an Archetypal Body
Type
Mectomorph is all fast twitch muscle and no fat while mesomorph has
both fast and slow twitch muscle and no fat. If you are an ectomorph and
cannot put on muscle or fat, your goal is mectomorph. The training is high
levels of weight lifting focusing on the major masculine muscle groups. If
you are an endomorph and cannot lose fat, your goal is mesomorph. The
training should be high levels of cardio particularly running. Fast twitch
muscle is the ideal as it maximizes bioelectricity. Slow twitch still has
bioelectricity, just not as much as fast twitch muscle.
Chapter 99:
The Alpha Diet
The alpha diet involves no sugar, low carbs, and no fat. This also includes
high protein and large amounts of liquids (water, fresh juice).
ALPHA IN LOVE
Alpha in
Philosophy
Alpha in
Health
Alpha Male
Alpha in
Love
Alpha in
Finance
Chapter 100:
Alpha and Beta Methodology
The Alpha and Beta methodology is a behavioral model as well as a value
analysis model. In short the Alpha and Beta model tells us what behavior
has value. It makes the distinction between male behavior and female
behavior as value is different for the male and female just as attraction is
different for the male and female.
The female is evolutionarily programmed to be attracted to the male
gender archetype called alpha. The male is evolutionarily programmed to
be attracted to the female gender archetype called beta. These
distinctions are at the core of the Alpha and Beta model.
The model also explains what behavior is unattractive in males and
females. The behavior that is unattractive is that which models the
opposite sexs gender archetype. In other words, beta (i.e. feminine)
behavior is unattractive for the male and alpha (i.e. masculine) behavior
is unattractive for the female.
The Alpha and Beta model aids males and females in finding high value
sexual & love partners. It states that the male should select a beta female
and avoid alpha females. It also states that the female should select an
alpha male and avoid beta males.
Chapter 101:
Positive Tension Methodology
Spiking and Sustaining Bioelectricity
Using the Positive Tension Model we are intentionally trying to create
positive tension with the girl that is the source of attraction and love. We
are not going to break the tension but merely satisfy the tension through
sex and repeat as shown in the model.
4.
5.
6.
7.
Conclusion
Build and maintain positive tension which means spiking bioelectricity
(i.e. pleasure) in the girl. Lead this bioelectricity towards love and turn
into a lifetime of Alpha and Beta in Love.
Chapter 102:
Network to Love Methodology
Selection is the single most important thing in the search for love.
Selecting the right girl (i.e. beta female) is the difference between Alpha
and Beta in Love for life and ending up with a feminist woman that does
not love men.
The number one determinant as to whether or not she is a beta female is
culture. Does she come from an objective culture or a biased culture?
The key is to target countries with objective cultures to find love. The
USA and Western Europe has a biased culture. East Asia and Eastern
Europe have objective cultures.
Hey, I noticed you in the cooking group and found you interesting and
pretty. I'd like to get to know you better. How was your day?
3. Interaction Playful, sexual, love
4. Logistics Coordination of physical meetings
5. Escalate - Sexually
6. Commit Promise rings, marriage
Notes
The girl that does not believe or value love has less value. Despite their
physical attractiveness.
There are pretty girls with high love drives. High love drives come from
the culture.
Eastern Europe and East Asia have objective cultures.
Ideal wife is a beta female that is 5' 0" to 5' 9", 100 to 130 lbs with a
pretty face.
Chapter 103:
Relationship Methodology
1.
2.
3.
4.
5.
6.
Pickup
Sex
Cuddle & Commit (Exclusive discussion)
Promise ring
Engagement
Marriage
PART X:
NEXT STEPS
Chapter 103:
How to Be an Alpha Male Course
Now that you have read through the How to Be an Alpha Male book, you
are ready to formally go through the course and obtain:
i.
Beta girlfriend/wife
Whether you are looking for same night lays, a girlfriend or a
wife, you are going to need to start the process beginning with
selection. During the course we go through the selection process
with our students one by one and build a list of beta females. We
aid our students in shaping their initial message and ultimately
transition this into a relationship including face to face meetings
and sex.
ii.
iii.
An alpha physique
If you have an ectomorph or endomorph body type, this portion
of the course is crucial. We form a diet with each one of our
students in order to get them to the target range of body types
which is between mectomorph and mesomorph.