Everyone has their own scale in their hearts, their own standards. Each person's experiences are different, and so their definitions of love will also vary.
The Philosophy of Love Debate#
- Lies begin with questions, not answers.
- Conditions for true love: presenting the real self + the result of free choice.
- Only the realization of good will is true free will; in this case, a person transcends their instrumental nature and achieves a pure purpose of realizing goodness. This kind of love (the pursuit of the essence of love, rather than viewing people as tools) is rooted in the heart.
- Treating people as concrete, complete individuals rather than as layers of social identities is the love that truly affirms the dignity of the other and comforts the deep loneliness within.
- If one believes from the beginning that true love is a lie, they may fall into the trap of self-fulfilling prophecy, concluding that true love is a lie, and vice versa; love is a continuous promotion of the act and feeling of love.
- The greatest insecurity in people lies in having great freedom, so they want to use the concept of true love to provide a sense of stability to eliminate the immense fear brought by freedom. If one can overcome this psychological barrier and believe that true love is a lie, they will understand that insecurity, desolation, and shortcomings are all part of love.
- "Life is like being in a cave; if you feel loved once, loneliness is no longer fate." Love is a kind of ambiguous understanding of emotional needs, a debate of ideas. The feeling of nostalgia, love is the imagination of a girl's heart, subjective feelings are heartbeats, judgments, and smiles that tell people that love is this subjective happiness, the beauty of interactive relationships. The world does not have unrequited love; there is only understanding of thoughts, resonance in language, and emotional interaction. The strongest chemical reactions arise from the knowledge, logic, thinking, and language where emotion and reason coexist, and that laughter for a soft life is not a descent into free will, but a conscious rush towards you. Love must be an emotional autonomous choice of will, a conscious behavior of mutual engagement, a departure from the emotional disguises that entrap oneself into a super-ego love. Love is to respect the other as a subject.
Love is a selfish expression of primitive genes.
Assuming true love exists 1: This is a decision of our survival.
Assuming true love exists 2: Love is a two-way event choice; love stimulates creativity and debate.
Assuming true love exists 3: The object of love is the interaction of perceived emotions and psychological flow, but love exists; otherwise, the history of humanity cannot be continued. The pursuit of true love seems to be an unremitting effort engraved in human life; people cannot suppress this impulsive drive, and of course, they are destined to be disappointed and hurt time and again. Love is finding a specific shining person among a limited group; the range of selectable objects most people encounter is randomly composed of fixed ideas that do not participate in events, forming specific perceptual insights. This selected range of life involves one's participation, but most is not determined by one's own efforts. Love is about personal privacy, individuality, uniqueness, and ownership. What is love? Is it a product of the family environment, or does it truly exist in the mutual attraction of thoughts? Scientists can bravely disregard everything for it and question themselves?
The romantic colors presented by literary works always show the latter, yet this "unreasoned" sincerity increasingly appears ethereal. It is often said that love is pure and beautiful, but the influence of reality often outweighs our imagination. If there is no beautiful exterior, if life is about to approach death... can we still rely on this love? Most people believe to believe, while in reality, material is the root of these consciousnesses. Even if we always want to shine, people cannot lie to hormones and desires. Affection and friendship, emotions arising from real relationships, sound less "pure." Love does not refer to a fixed person, is not a static concept, and is certainly not projecting a perfect fantasy onto the other. True love is about allowing oneself to experience emotional and emotional changes, growing "around life to build love, rather than building life around true love's inherent order." The concept of love itself is a rejection and dissatisfaction with various random desires surrounding it, because choosing to become a person who does not cater to them is when love presents itself, resonating thoughts of one mind with another.
Love is often a "thing" with a very short life cycle. Encountering true perfect love is merely a rather uncertain probability. Not everyone can encounter love, and not everyone needs love. Yes, you heard it right; these words can easily make people feel disappointed. Perhaps a large part of the people in this world never experience so-called unwavering love in their lifetime, yet they still survive, still give birth and raise children, and propagate their lineage.
The first point is to love oneself immensely. Love your body, love your figure, love your voice, love your hobbies, love your thoughts. You must learn to like yourself, focus on yourself, and truly become yourself.
Becoming better is the key to solving all problems. I hope all girls learn to focus on themselves, on their work and careers. Once you have a certain financial foundation, you can spend appropriately on yourself. First, manage yourself well, maintain a good state, and naturally, you will not feel anxious about marriage. Because you have confirmed that you are good enough, you have given yourself enough security, and you do not need to demand from the other party. Only when both parties are in a balanced state can they manage their marriage well. Otherwise, no matter who you marry, the final result will be the same.
From a legal and economic perspective, the family formed by marriage can be likened to a partnership enterprise. Both spouses are shareholders in this enterprise, bearing both internal and external risks while also sharing the profits of the partnership. Of course, doing business and running an enterprise also requires a mindset for dissolution; managing a romantic relationship or marriage should be no different.
Regardless of whether in love or marriage, one must learn to insure oneself in advance. This is not to calculate the other party but to maximize the protection of our personal and property safety. We must know that most marital disputes can be avoided. This is also the original intention behind writing this book, hoping everyone can make more rational decisions regarding emotions and marriage, avoiding regrets. Even if choosing not to marry, one must learn to protect oneself to avoid negative impacts on one's life due to sudden risks.
The importance of the original family
Examining what the other party's original family is like is an important dimension in judging whether a boyfriend is suitable for marriage. Before deciding whether to marry your partner, you can meet their parents to understand their original family environment and how their parents interact with each other. Whether the other party's parents are divorced is not the focus; the key is whether they can still get along peacefully like friends or relatives even after divorce. Is the family filled with goodwill and care, or is it filled with hatred and resentment?
Before marriage, you must have more contact with the other party's parents. When communicating with the other party's parents, you can understand their growth process and judge the marriage model after marriage.
The habitual software of the human brain during the growth process. When we buy a new computer from the mall, it only has a skeleton and hardware; this computer cannot be used. We need to install the system software and operating system on this computer to use it normally. When we are born, we are like a bare machine; if no one installs the system software for you, you cannot grow. Do you know who programmed your system software? The answer is parents, is family. For example, how to eat with chopsticks or forks, the way of speaking, language expression habits, how to greet people when interacting, whether speaking is polite? Treating others with humility? For example, not lying, not taking others' things, and taking responsibility for one's own mistakes, these are all the initial system software. If this system software has defects, it is easy to produce bugs. Once there are bugs, it is easy to have problems in the process of living with others, and such problems are often difficult to reconcile.
Assessing his values
In addition to the original family, it is best to understand his colleagues and friends. Occasionally organize some gatherings with friends, such as singing, barbecuing, traveling, etc. During the gathering, observe what entertainment activities he has with his friends and what kind of interaction he has with them. At the same time, listen to his evaluations of his friends, which can reflect his outlook on life.
Listen to his views on money
Additionally, you should pay special attention to his views on money. The maintenance of marriage cannot be separated from the property protection mechanism, and the other party's views on money will directly affect the handling of property issues in marriage. Therefore, you need to consider the following questions: Does your boyfriend place particular importance on money? When he needs to give up some of his financial interests, is he generous or stingy? If your boyfriend values small profits or refuses to share his wealth, then marrying such a person may lead to conflicts over small property issues, which could seriously lead to the breakdown of the marriage.
Assessing stress tests
When looking for a partner, you must choose someone emotionally stable. Emotional stability is a particularly valuable quality in a man because when he is emotionally stable, you feel secure every time he goes out driving, knowing he can handle any situation. You won't worry that he will frequently have conflicts with others; even if he occasionally has disagreements, he will know how to resolve them gracefully.
Of course, in addition to the four observation dimensions mentioned above, there are also some general standards, such as the other party's physical health status, credit report, whether the family has hereditary diseases and mental illnesses, etc. By comprehensively analyzing the information observed, you can clearly outline the state of your married life. Of course, all the judgment criteria mentioned above are not absolute; no one can measure who is suitable as a partner and who is not like a ruler. The following measures may help you eliminate some obvious wrong answers.
A person's growth experience will leave a deep imprint on them, just like a plum blossom imprint. Perhaps we only see countless people and experience countless things in our lifetime, and only then can we clearly see this plum blossom imprint on ourselves. Once we see this plum blossom imprint clearly, we can understand what we want. At this moment, a person lives transparently, no longer bound by the people and things around them.
99% of a person's troubles come from interpersonal relationships, and dealing with these relationships will constantly consume your energy. Only by saving enough money can you refuse job invitations you don't like and reject those unnutritious, ineffective social interactions. One day, when you have enough wealth, you will have enough confidence to refuse others' improper demands, avoiding all the interpersonal relationships you dislike and solving 99% of your troubles.
Having both love and bread is naturally better. However, when faced with the choice between love and making money, when the two cannot coexist perfectly, do not easily give up your career, nor easily give up your opportunity to make money.
If you choose to marry a man whose living environment is vastly different from yours, I suggest you prepare comprehensively in all aspects. You might as well visit your boyfriend's hometown to see his living environment with your own eyes and truly experience his lifestyle. Because in the future, during festivals or when you have children and need help from your mother-in-law, his family and their values and hygiene habits will inevitably become part of your life.
If you feel that you can fully accept it and have made all preparations, then consider whether to marry.
Thirdly, if you are "climbing high," you must have self-awareness.
Compared to "marrying down," more girls may choose to "climb high." Young girls, good-looking, good-natured, encounter a decent guy, and through marriage escape their original family, achieving financial freedom; such cases are everywhere.
The problem is that after a while of good days, some girls easily forget the path they came from, lose the correct judgment of their self-worth, and bind their husband's ability to their own, thinking "the reason he is doing so well in business now must be because of me; perhaps it is because I bring him good fortune." If you think this way, you lack self-awareness.
For girls who are climbing high in economic conditions, they must live with a grateful heart, feeling lucky to live well. They must never think that because they married him, because they have a marriage certificate, everything he has now naturally belongs to you, so all the money he earns now is yours.
You must know that all relationships are maintained through mutual needs. In the past, your youth and beauty, gentleness and thoughtfulness may have been your value, but as time goes on, these "dividends" will gradually disappear. If you still think everything is taken for granted without early self-value and self-improvement in your comfort zone, how can you maintain a marriage for long?
We need to accumulate other advantages and strengths that are not deprived by time, such as whether you are good at managing a household? Are you good at organizing banquets? Can you maintain good relationships with your husband's business partners' families to support your husband? Or have you learned a lot about family education theories and methods, able to take care of children particularly well? Or is your financial management ability strong enough to manage your family's assets well?
To live well, you must first have self-awareness, know what value you have, what contributions you can make to the family, and what support and assistance you can provide to the man you live with.
Only looking at conditions to choose a partner. After all, "do not bully the young and poor," many girls have encountered decent "potential stocks" with good character and strength, and both work hard together, living harmoniously. Moreover, many girls just want to be a "nurturing girlfriend," working hard together with the boy to start from scratch. Or some girls originally have good incomes and only need someone who treats them well, regardless of the other person's income.
These are all choices, with no right or wrong, no superiority or inferiority.
But if you encounter a person who treats you well but is economically far below you and lacks strength, I have a few suggestions for everyone:
- Do not rush to get a marriage certificate.
- Never get pregnant before marriage.
- Test for a while; you must live together to see if you can get along harmoniously and whether there are gaps in values.
- Within a reasonable range, spend a little of his money to see if he will mind.
- When he asks to be intimate with you, if you happen to refuse him because you are in a bad mood, observe his reaction.
- Observe how he behaves when he loses his temper.
- Observe how he behaves when he gets drunk.
- If the whole family plays mahjong for entertainment during the New Year, observe how he reacts when he loses.
This will reveal his health level, character, ability, and his starting point for dating you. Therefore, I suggest girls try living with their boyfriends for 3 to 5 months to thoroughly assess their true character.
When dating, do you need to return gifts given by the other party?
From a legal perspective, whether gifts received during a romantic relationship need to be returned should be viewed from the following three dimensions: - What is the purpose of giving the gift?
- What kind of gift is it? Can this gift be regarded as a betrothal gift?
- The value and amount of the gift.
The direct meaning of breaking up with a lover is that they do not want to marry the other party. In this case, there is only one gift that the law requires to be returned, which is the betrothal gift. Betrothal gifts are gifts given to the other party for the purpose of marriage. For example, in some rural areas, the man must give the woman gold earrings, gold rings, and gold necklaces when getting married. This is generally recognized by law as a gift given for the purpose of marriage. As long as you do not want to marry the person, these "three golds" must be returned to the other party.
This needs to consider the following factors: - The size of the value. If the boyfriend bought a bag worth 200,000 yuan, then you are likely to have to return the gift.
- The value of the gift should be compared with the income level of the giver. If the other party is a billionaire boss and bought you a bag worth several tens of thousands of yuan, it may not be recognized as a betrothal gift, and there is no need to return it after breaking up. In determining whether it is recognized as a betrothal gift, the judge has a lot of discretion.
- According to local customs, if the received gift is recognized as a betrothal gift, it must be returned if you ultimately do not marry the other party.
Anything not explicitly stated by law is at the discretion of the judge. The law states that if the two parties have not married, the betrothal gift must be returned. However, the law does not explicitly state what is a betrothal gift, so the judge must make a comprehensive judgment based on the specific facts of the case, the amount of the betrothal gift, the income status of the man, the preparation for the wedding, and the local economic level and customs.
Tips for Prenuptial Property Agreements#
Prenuptial property agreements are a topic of great concern, and there are many misconceptions about them. For example, many people think that prenuptial property agreements can only stipulate property before marriage, which is incorrect. Although the agreement is called a prenuptial property agreement and is generally signed before marriage, this agreement can stipulate both property before and after marriage. It can designate property owned before marriage as jointly owned, or it can designate property obtained after marriage as owned by oneself, and it can also stipulate that part belongs to oneself while another part is jointly owned.
When stipulating property before marriage, one can detail what property they own before marriage and clarify how the appreciation, price increase, rental income, and cash obtained from selling these properties after marriage should be allocated. It can even specify the intended use of post-marital property, such as if the house for which I made a down payment before marriage is to be sold in the future, if the spouse's signature is needed, the other party should unconditionally cooperate and sign, and what responsibilities the other party should bear if they refuse to sign. Entrepreneurs, in particular, need to pay attention to how the equity obtained from a company established before marriage, the dividends generated after marriage, the appreciation of stocks, and the cash obtained from selling stocks after marriage should be allocated; these details can be clearly outlined before marriage.
How to Conduct Due Diligence When Choosing a Wife?#
I. Introduction
Earlier, an article went viral online titled "What Valuation Method to Use When Choosing a Husband." This article provided practical reference methods for women to choose husbands from a female perspective and resonated widely. Just as soldiers face the enemy, women need correct valuation methods when choosing husbands, and men must also have certain evaluation criteria, which is conducive to the harmonious development of society and mutual benefit.
From the moment a man is born, he embarks on a path of entrepreneurship, which essentially involves managing himself, as well as managing his family, work, and life. When entrepreneurship reaches a certain stage, most men need to bring in external investors—namely, their female partners—to help manage their entrepreneurial plans together.
From this perspective, "men seek beauty, women seek wealth" makes some sense, but men also pursue women's "talents." Here, "talents" may not necessarily refer to women's material wealth; it could also refer to life skills and spiritual support. Therefore, we agree that the combination of men and women is based on material, but the true pursuit of marriage is spiritual.
As the article "What Valuation Method to Use When Choosing a Husband" metaphorically states, women choosing husbands is like venture capitalists choosing investment companies, balancing risk and return. In fact, men choosing wives is also akin to entrepreneurs selecting venture capitalists, which involves assessing both returns and risks. Once you take the money from a venture capitalist, the investor becomes your shareholder and will have certain expectations for your daily operations and business strategy, providing suggestions and even influencing your management authority.
If you choose the wrong investor, not only will the man's entrepreneurial path not progress better or faster, but it may also lead to directional errors and wasted efforts. The investor may even turn against you, taking away your management authority and reintroducing external managers. Your entrepreneurial venture could be ruined overnight, and your reputation could be tarnished.
Based on this, we suggest that men should also carefully choose their investors and conduct due diligence on potential investors, ensuring they select investors that align with their long-term development needs. If not suitable, it is better to postpone bringing in investors and rely on self-development. Below, we provide specific operational suggestions.
II. Classification of Investors
As entrepreneurs, one must take a lesson in understanding the different classifications and investment preferences of investors. According to the classification in "What Valuation Method to Use When Choosing a Husband," women can be divided into three main investment models:
- The vast majority of women belong to relatively mature VC investors, whose investment targets are men with basic profitability and high growth potential.
- Some women act as angel investors, willing to choose a man who is poor and has no future.
- A small number of women only focus on premium blue-chip stocks, i.e., men with peak profitability, such as wealthy heirs and top billionaires. These investors often possess extreme capital (such as stunning beauties, movie stars, beauty pageant winners, etc.), but competition among investors is fierce, and most return empty-handed, even if successful, they cannot hold controlling shares.
There are no PE investment-type women focused on pre-IPO. Once a man goes public, although the value of the shares he holds may soar, he cannot hold 100% control, and the battles among shareholders can be fierce. Therefore, even though such situations are common, they are not the original intention of female investors.
III. Valuation of Men
Valuation is the cornerstone of investment success. Here are a few basic valuation methods for the majority of female investors to reference: - Price-to-Earnings Ratio Valuation
Current value valuation must be combined with the concept of price-to-earnings ratio. The price-to-earnings ratio is the ratio of a man's market price to his earnings:
Price-to-Earnings Ratio = Market Price / Earnings
For example, if other female investors are willing to pay a total discounted price of 1 million yuan for a man, and this man's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year is 100,000 yuan, then this man's price-to-earnings ratio is 10 times.
Valuation logic: Refer to the industry average price-to-earnings ratio. That is, see how many times other female investors pay for men with similar professions and incomes. If the average is greater than 10, then the man is undervalued; if less than 10, then he is overvalued.
Note: If the man is particularly handsome, humorous, considerate, artistic, or has depth, a certain price-to-earnings ratio premium can be given. It is generally advisable not to overprice, as these factors are too subjective and difficult to quantify and sustain. - Value + Growth Valuation Formula
A man with enormous investment value must be a combination of value and growth. This valuation method avoids the static nature of price-to-earnings ratio valuation. A simple formula is as follows:
(Value + Growth within One Year) / 2 = Current Value
Expanded to:
(Current Year Performance × Price-to-Earnings Ratio + Next Year Forecast Performance × Price-to-Earnings Ratio) / 2 = Current Value
For example, if a man’s income in 2007 is 100,000 yuan, and the forecast income for 2008 is 120,000 yuan, with an industry average price-to-earnings ratio of 15 times, and he is handsome, humorous, gentle, and considerate, we can estimate a higher ratio of 3-5 times, calculating at 20 times:
(100 × 20 + 120 × 20) / 2 = 220 million yuan
Then look at his market price; if other women are only willing to invest 1 million yuan in him, you are simply picking up money on the street, decisively investing 1.2 million yuan without shorting; in the fluctuation adjustment range between 1.2-1.8 million yuan, it should be a flirtatious and ambiguous high-low absorption; exceeding 2 million should be sold off, and do not consider future growth, as high bids could lead to being trapped.
However, everyone should remember that this algorithm only applies to currently valuable growth men. Those without stable income, unemployed, or whose careers are declining should be ignored. Value + growth, one cannot be missing. Additionally, if calculating the expected growth of the man over more than three years, one should consider the risk-free return rate and inflation factors, choosing a reasonable discount rate for discounting. Due to its complexity, it will not be elaborated here. - Yield Valuation Method
This valuation method is also known as the "Comparable Coefficient" method, which uses some standard coefficients to determine a man's value. The basic theoretical foundation of this valuation is that a man's income will not all be used on women; the reasonable returns that women can enjoy are more meaningful to female investors.
First, how to define a man's income is crucial. There are currently various statements, including: Free Cash Flow EBITDA, Earnings Before Interest and Taxes (EBIT), After-Tax Earnings (EAT), Earnings After Interest, Taxes, Depreciation, and Amortization (EAITDA). To avoid valuation bias for female investors, it is recommended to use EAITAD, i.e., Earning After Interest, Tax, Depreciation, and Amortization.
Yield = Actual Payment Yield / EAITAD
For example, if a man’s annual income after paying credit card interest, car and housing loan interest, taxes, and expenses for family and friends, and depreciation of durable consumer goods he previously purchased is 20,000 yuan, and the money he spends on you (including dining, gifts, travel, dates, hotel stays, etc.) is 15,000 yuan, then:
Yield Capitalization Rate = 15,000 / 20,000 = 0.75
If your yield with your previous boyfriend was 0.5, then this man’s valuation is higher; if the industry average yield (similar female investors' yield) is between 0.1-0.3, then this man is rated as a buy; if the average yield is above 0.8, then this man is rated as a sell. - Asset-Based Valuation Method
Asset valuation is currently quite popular, i.e., valuing a man based on the value of his existing assets. There are many ways to value assets, including Fair Market Value, Fair Value, Book Value, and Liquidation Value.
Female investors are relatively familiar with this valuation method, and it is important to remind a few valuation factors:
a. Liquidity Discount
For a man’s assets, detailed analysis is required. For example, if he holds a large number of restricted assets, such as restricted trading stocks, they should be multiplied by the corresponding discount coefficient.
For example, if a man holds equity in a company worth 20 million yuan but cannot trade, and the average discount coefficient for restricted trading stocks is 33%, then the actual value of that part of the asset for this man is 20,000,000 * 0.33 = 6,600,000 yuan.
b. Book Value vs. Fair Value
For example, if a man bought an Audi car for 600,000 yuan in 2008 and a residential property in Shanghai's Changning District for 2 million yuan, then based on the market fair value (assuming the car depreciates by 50% within the next year and the property appreciates by 200%), the calculation would be:
Current Book Value = 600,000 + 2,000,000 = 2,600,000 yuan
Actual Valuation within the Next Year = 600,000 * (1 - 0.5) + 2,000,000 * (1 + 2) = 6,300,000 yuan
Thus, a female investor investing the equivalent of 2,600,000 yuan in resources to acquire this man will gain an asset premium of 370,000 yuan within the next year. Therefore, a man without a car but with a house is not a good investment; a man with a house has a very good asset premium outlook.
c. Financial Statement Pitfalls
The greatest risk of valuing based on book value comes from inadequate analysis of a man's financial statements. It is particularly important to pay attention to the following items:
"Non-Recurring Gains and Losses." For example, claiming an annual income of 100,000 yuan, which actually includes 50,000 yuan found on the street, is not sustainable.
"Main Business Profit" / "Operating Profit." For example, if a man earns 60,000 yuan as a consulting advisor and 100,000 yuan singing at night, then it is necessary to check whether his main business is singing or consulting. Only then can the corresponding industry average price-to-earnings ratio be used for valuation.
Separating investment-related gains and losses and assets. Engaging in stock trading, real estate, futures, gold, foreign exchange, art, treasury bonds, rosewood furniture, and Pu'er tea all belong to high-risk activities. When valuing, relevant items should be separated to avoid risks. — There are too many techniques for analyzing financial statements to detail here.
IV. The Art of Investment
As mentioned earlier, once an investor gives an investment letter of intent, the investor and entrepreneur often enter into negotiations regarding the details of the investment. Especially around the valuation of the company, shareholding ratio, board setup, dividend, and redemption terms, both parties will engage in various bargaining, which is a battle of wits and courage.
1. Valuation and Negotiation Chips
Investors will evaluate you in various ways, including but not limited to the four methods mentioned earlier. Men will try to raise their valuation level as much as possible during negotiations, essentially selling at a good price. Therefore, men first need to understand what negotiation chips they possess.
A) Self-Assessment.
We suggest that men first objectively assess their value in the overall market. If a man's various conditions are above the market average, we recommend that you raise your asking price during negotiations. If your conditions are poor, we suggest lowering the threshold or continuing to work hard on some additional options. Generally speaking, a property located in the city center can instantly place you in the top 10% of the market.
Similarly, men also need to self-assess whether they are in an upward or downward value trajectory. The correct investment method is to buy high and sell low, but this only exists in ideal conditions. Most female investors prefer investment targets that are in an upward phase. For men temporarily in a downward phase, many women often appear very shortsighted. This is related to the innate aversion to risk among most female investors, which can also be described as "lack of security."
Based on this, we suggest that men can raise their asking price when in an upward phase, but if in a temporary downturn, they should avoid proactively contacting investors, as your negotiation chips will be very limited at this time.
B) Perspective Shift
The purpose of men shifting perspectives is to understand the pressure and psychological activities that women bear in investment decisions. Most female investors bear investment pressures mainly from the fear of missing out on good projects, the pressure of not being able to invest, and the pressure of the fund management period coming to an end. That is, female investors must find a good marriage partner within a limited period and ultimately succeed in the competition.
Smart men can gauge the level of pressure the woman is under through probing and judgment to obtain a reasonable asking price. However, this method does not apply to a few female investors with extremely long investment periods who do not care about investment results.
Some men create an illusion that they are being fought over by many female investors to gain favor. This method may sometimes work, but we do not recommend men imitate it. Because any excessively high valuation will create a value bubble, and a bubble burst may lead to a breakup.
C) Negotiation Rhythm
The art of negotiation often lies in controlling the rhythm. When male investors actively seek out investors, they often hit a wall because once you take the initiative, you are already in a weak position as the invested party. The correct approach is to attract investors to come to you through advertising, public relations, good reputation, and brand image; at this point, men will have greater negotiation chips.
In the negotiation process between both parties, it is advisable for men not to show excessive enthusiasm at the beginning, as this may allow investors to take the opportunity to lower your valuation. The correct method is to be reasonable and measured, with a balance of tension and relaxation. However, one should not be too cold or hot, causing investors to lose confidence in you. Of course, necessary proactive engagement is still required, provided that men fully understand their negotiation chips.
D) Negotiation Skills
Successful negotiations do not actually have skills; the key is to maintain a good mindset. We believe that for men, a good mindset is to strive for a higher investment valuation within a reasonable range without going too high. Therefore, men should try to showcase their strengths to female investors, especially those hidden but easily overlooked advantages. As for their shortcomings, men do not need to avoid them, as these often cannot escape the due diligence of female investors. However, smart men are good at turning their shortcomings into strengths, for example: being homebody = not going out to flirt, not being romantic = not spending money recklessly, not being handsome enough = safer to take out, etc.
2. Shareholding Ratio and Dividends
With a fixed capital amount, female investors generally hope to obtain as high a shareholding ratio as possible to have enough say. Men should understand that equity can be transferred, but controlling rights must be held in their own hands; this is the bottom line of negotiations. Once controlling rights fall into the hands of others, the worst-case scenario is that the man is left with nothing and homeless. At this point, you can only hope to meet another angel investor.
Additionally, the dividend ratio also needs to be agreed upon in advance by both parties. Most women know that their investments are unlikely to exit through an IPO, so they generally require men to share dividends from their salary income, with dividend ratios ranging from 50% to 100%. Maintaining a certain dividend ratio helps maintain a good investor relationship. However, men should also understand that excessive dividends are not conducive to the long-term development of the enterprise, as you may not have enough liquidity for reproduction and may struggle to withstand industry fluctuations. This point is often difficult for female investors to understand, as they generally believe that dividends help men manage funds more effectively and avoid going astray.
3. Buyback Clauses
Most female investors do not want to see investments being bought back by men, meaning both parties part ways. However, given the many uncertainties in the market and from a rational investment perspective, it is necessary to stipulate buyback clauses in advance, i.e., prenuptial property notarization, as this clause legally protects the interests of both parties.
However, a considerable number of people express that they cannot accept this emotionally. We believe that there are two situations in which buyback clauses can be ignored. One is when neither party owns real estate. The other is when both parties are willing to bear the risk factors that come with investment failure.
4. Exclusivity
The investment letter of intent given by venture capitalists is generally exclusive, meaning they require men to cut off contact with other investors during negotiations to ensure their priority selection rights. From both a legal and emotional perspective, this is reasonable. However, as I mentioned earlier, an investment letter of intent cannot be equated with actual investment.
A common situation is that after a woman expresses her investment intent to a man, she ultimately invests in someone else. Due to the exclusivity clause, men often cut off contact with other women at this time, so they have to start over with other investors. More critically, female venture capitalists are generally social animals; once someone hears that you received an investment intent but ultimately did not receive investment, almost all investors will immediately know and instinctively suspect that your performance has some hard flaws. This may put men in a very passive position.
For this reason, we suggest that men treat exclusivity clauses with caution. When unavoidable, they can also leave themselves a way out through various means. The specific methods are not the focus of this article and will not be detailed here.
What Valuation Method to Use When Choosing a Husband?#
I. Introduction
From a human nature perspective, the needs of men and women are highly unified: both are attracted to beauty and wealth, with material as the foundation and spirit as the pursuit. Social concepts and rules have changed men and women after adulthood, leading them to develop in different directions: men seek beauty, women seek wealth.
In developed cities in China, including South Korea and Japan, even in international metropolises across Asia, the phenomenon of "leftover women" is extremely common, even when the gender ratio is not skewed. Except for a few who genuinely do not want to marry, most want to marry but cannot find suitable partners. The essence of this is a concept at play: men and women’s economic income must reach a certain balance before people believe "men can marry, women can marry." To put it nicely, it is about what value men must achieve for women to consider marrying them, so that they do not feel they are losing out. Therefore, when women choose husbands, it is like venture capitalists choosing to acquire companies, balancing risk and return.
It is important to note that this risk investment by women is absolutely strategic; under normal circumstances, it cannot achieve the exit of ordinary financial investors. A one-time deal is a typical example of high-risk investment.
Broadly speaking, women can be divided into three main investment models.
- The vast majority of women belong to relatively mature VC investors, whose investment targets are men with basic profitability and high growth potential. Such men are in the development phase of their life cycle, with broad prospects and currently undervalued.
- Of course, there are some women who act as angel investors, willing to choose a man who is poor and has no future, but successful cases are rare (a classic successful case is Zhuo Wenjun investing in Lin Xiangru over 2000 years ago).
- There are also a small number of women who only focus on premium blue-chip stocks, i.e., men with peak profitability, such as wealthy heirs and top billionaires. Most of these investors possess extreme capital (such as stunning beauties, movie stars, beauty pageant winners, etc.), but competition among investors is fierce and bloody, and most return empty-handed, even if successful, they cannot hold controlling shares.
There are no PE investment-type women focused on pre-IPO. Once a man goes public, although the value of the shares he holds may soar, he cannot hold 100% control, and the battles among shareholders can be fierce. Therefore, even though such situations are common, they are not the original intention of female investors.
II. Valuation of Men
Valuation is the cornerstone of investment success. Here are a few basic valuation methods for the majority of female investors to reference: - Price-to-Earnings Ratio Valuation
Current value valuation must be combined with the concept of price-to-earnings ratio. The price-to-earnings ratio is the ratio of a man's market price to his earnings:
Price-to-Earnings Ratio = Market Price / Earnings
For example, if other female investors are willing to pay a total discounted price of 1 million yuan for a man, and this man's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year is 100,000 yuan, then this man's price-to-earnings ratio is 10 times.
Valuation logic: Refer to the industry average price-to-earnings ratio. That is, see how many times other female investors pay for men with similar professions and incomes. If the average is greater than 10, then the man is undervalued; if less than 10, then he is overvalued.
Note: If the man is particularly handsome, humorous, considerate, artistic, or has depth, a certain price-to-earnings ratio premium can be given. It is generally advisable not to overprice, as these factors are too subjective and difficult to quantify and sustain. - Value + Growth Valuation Formula
A man with enormous investment value must be a combination of value and growth. This valuation method avoids the static nature of price-to-earnings ratio valuation. A simple formula is as follows:
(Value + Growth within One Year) / 2 = Current Value
Expanded to:
(Current Year Performance × Price-to-Earnings Ratio + Next Year Forecast Performance × Price-to-Earnings Ratio) / 2 = Current Value
For example, if a man’s income in 2007 is 100,000 yuan, and the forecast income for 2008 is 120,000 yuan, with an industry average price-to-earnings ratio of 15 times, and he is handsome, humorous, gentle, and considerate, we can estimate a higher ratio of 3-5 times, calculating at 20 times:
(100 × 20 + 120 × 20) / 2 = 220 million yuan
Then look at his market price; if other women are only willing to invest 1 million yuan in him, you are simply picking up money on the street, decisively investing 1.2 million yuan without shorting; in the fluctuation adjustment range between 1.2-1.8 million yuan, it should be a flirtatious and ambiguous high-low absorption; exceeding 2 million should be sold off, and do not consider future growth, as high bids could lead to being trapped.
However, everyone should remember that this algorithm only applies to currently valuable growth men. Those without stable income, unemployed, or whose careers are declining should be ignored. Value + growth, one cannot be missing. Additionally, if calculating the expected growth of the man over more than three years, one should consider the risk-free return rate and inflation factors, choosing a reasonable discount rate for discounting. Due to its complexity, it will not be elaborated here. - Yield Valuation Method
This valuation method is also known as the "Comparable Coefficient" method, which uses some standard coefficients to determine a man's value. The basic theoretical foundation of this valuation is that a man's income will not all be used on women; the reasonable returns that women can enjoy are more meaningful to female investors.
First, how to define a man's income is crucial. There are currently various statements, including: Free Cash Flow EBITDA, Earnings Before Interest and Taxes (EBIT), After-Tax Earnings (EAT), Earnings After Interest, Taxes, Depreciation, and Amortization (EAITDA). To avoid valuation bias for female investors, it is recommended to use EAITAD, i.e., Earning After Interest, Tax, Depreciation, and Amortization.
Yield = Actual Payment Yield / EAITAD
For example, if a man’s annual income after paying credit card interest, car and housing loan interest, taxes, and expenses for family and friends, and depreciation of durable consumer goods he previously purchased is 20,000 yuan, and the money he spends on you (including dining, gifts, travel, dates, hotel stays, etc.) is 15,000 yuan, then:
Yield Capitalization Rate = 15,000 / 20,000 = 0.75
If your yield with your previous boyfriend was 0.5, then this man’s valuation is higher; if the industry average yield (similar female investors' yield) is between 0.1-0.3, then this man is rated as a buy; if the average yield is above 0.8, then this man is rated as a sell. - Asset-Based Valuation Method
Asset valuation is currently quite popular, i.e., valuing a man based on the value of his existing assets. There are many ways to value assets, including Fair Market Value, Fair Value, Book Value, and Liquidation Value.
Female investors are relatively familiar with this valuation method, and it is important to remind a few valuation factors:
a. Liquidity Discount
For a man’s assets, detailed analysis is required. For example, if he holds a large number of restricted assets, such as restricted trading stocks, they should be multiplied by the corresponding discount coefficient.
For example, if a man holds equity in a company worth 20 million yuan but cannot trade, and the average discount coefficient for restricted trading stocks is 33%, then the actual value of that part of the asset for this man is 20,000,000 * 0.33 = 6,600,000 yuan.
b. Book Value vs. Fair Value
For example, if a man bought an Audi car for 600,000 yuan in 2008 and a residential property in Shanghai's Changning District for 2 million yuan, then based on the market fair value (assuming the car depreciates by 50% within the next year and the property appreciates by 200%), the calculation would be:
Current Book Value = 600,000 + 2,000,000 = 2,600,000 yuan
Actual Valuation within the Next Year = 600,000 * (1 - 0.5) + 2,000,000 * (1 + 2) = 6,300,000 yuan
Thus, a female investor investing the equivalent of 2,600,000 yuan in resources to acquire this man will gain an asset premium of 370,000 yuan within the next year. Therefore, a man without a car but with a house is not a good investment; a man with a house has a very good asset premium outlook.
c. Financial Statement Pitfalls
The greatest risk of valuing based on book value comes from inadequate analysis of a man's financial statements. It is particularly important to pay attention to the following items:
"Non-Recurring Gains and Losses." For example, claiming an annual income of 100,000 yuan, which actually includes 50,000 yuan found on the street, is not sustainable.
"Main Business Profit" / "Operating Profit." For example, if a man earns 60,000 yuan as a consulting advisor and 100,000 yuan singing at night, then it is necessary to check whether his main business is singing or consulting. Only then can the corresponding industry average price-to-earnings ratio be used for valuation.
Separating investment-related gains and losses and assets. Engaging in stock trading, real estate, futures, gold, foreign exchange, art, treasury bonds, rosewood furniture, and Pu'er tea all belong to high-risk activities. When valuing, relevant items should be separated to avoid risks. — There are too many techniques for analyzing financial statements to detail here.
IV. The Art of Investment
As mentioned earlier, once an investor gives an investment letter of intent, the investor and entrepreneur often enter into negotiations regarding the details of the investment. Especially around the valuation of the company, shareholding ratio, board setup, dividend, and redemption terms, both parties will engage in various bargaining, which is a battle of wits and courage.
1. Valuation and Negotiation Chips
Investors will evaluate you in various ways, including but not limited to the four methods mentioned earlier. Men will try to raise their valuation level as much as possible during negotiations, essentially selling at a good price. Therefore, men first need to understand what negotiation chips they possess.
A) Self-Assessment.
We suggest that men first objectively assess their value in the overall market. If a man's various conditions are above the market average, we recommend that you raise your asking price during negotiations. If your conditions are poor, we suggest lowering the threshold or continuing to work hard on some additional options. Generally speaking, a property located in the city center can instantly place you in the top 10% of the market.
Similarly, men also need to self-assess whether they are in an upward or downward value trajectory. The correct investment method is to buy high and sell low, but this only exists in ideal conditions. Most female investors prefer investment targets that are in an upward phase. For men temporarily in a downward phase, many women often appear very shortsighted. This is related to the innate aversion to risk among most female investors, which can also be described as "lack of security."
Based on this, we suggest that men can raise their asking price when in an upward phase, but if in a temporary downturn, they should avoid proactively contacting investors, as your negotiation chips will be very limited at this time.
B) Perspective Shift
The purpose of men shifting perspectives is to understand the pressure and psychological activities that women bear in investment decisions. Most female investors bear investment pressures mainly from the fear of missing out on good projects, the pressure of not being able to invest, and the pressure of the fund management period coming to an end. That is, female investors must find a good marriage partner within a limited period and ultimately succeed in the competition.
Smart men can gauge the level of pressure the woman is under through probing and judgment to obtain a reasonable asking price. However, this method does not apply to a few female investors with extremely long investment periods who do not care about investment results.
Some men create an illusion that they are being fought over by many female investors to gain favor. This method may sometimes work, but we do not recommend men imitate it. Because any excessively high valuation will create a value bubble, and a bubble burst may lead to a breakup.
C) Negotiation Rhythm
The art of negotiation often lies in controlling the rhythm. When male investors actively seek out investors, they often hit a wall because once you take the initiative, you are already in a weak position as the invested party. The correct approach is to attract investors to come to you through advertising, public relations, good reputation, and brand image; at this point, men will have greater negotiation chips.
In the negotiation process between both parties, it is advisable for men not to show excessive enthusiasm at the beginning, as this may allow investors to take the opportunity to lower your valuation. The correct method is to be reasonable and measured, with a balance of tension and relaxation. However, one should not be too cold or hot, causing investors to lose confidence in you. Of course, necessary proactive engagement is still required, provided that men fully understand their negotiation chips.
D) Negotiation Skills
Successful negotiations do not actually have skills; the key is to maintain a good mindset. We believe that for men, a good mindset is to strive for a higher investment valuation within a reasonable range without going too high. Therefore, men should try to showcase their strengths to female investors, especially those hidden but easily overlooked advantages. As for their shortcomings, men do not need to avoid them, as these often cannot escape the due diligence of female investors. However, smart men are good at turning their shortcomings into strengths, for example: being homebody = not going out to flirt, not being romantic = not spending money recklessly, not being handsome enough = safer to take out, etc.
2. Shareholding Ratio and Dividends
With a fixed capital amount, female investors generally hope to obtain as high a shareholding ratio as possible to have enough say. Men should understand that equity can be transferred, but controlling rights must be held in their own hands; this is the bottom line of negotiations. Once controlling rights fall into the hands of others, the worst-case scenario is that the man is left with nothing and homeless. At this point, you can only hope to meet another angel investor.
Additionally, the dividend ratio also needs to be agreed upon in advance by both parties. Most women know that their investments are unlikely to exit through an IPO, so they generally require men to share dividends from their salary income, with dividend ratios ranging from 50% to 100%. Maintaining a certain dividend ratio helps maintain a good investor relationship. However, men should also understand that excessive dividends are not conducive to the long-term development of the enterprise, as you may not have enough liquidity for reproduction and may struggle to withstand industry fluctuations. This point is often difficult for female investors to understand, as they generally believe that dividends help men manage funds more effectively and avoid going astray.
3. Buyback Clauses
Most female investors do not want to see investments being bought back by men, meaning both parties part ways. However, given the many uncertainties in the market and from a rational investment perspective, it is necessary to stipulate buyback clauses in advance, i.e., prenuptial property notarization, as this clause legally protects the interests of both parties.
However, a considerable number of people express that they cannot accept this emotionally. We believe that there are two situations in which buyback clauses can be ignored. One is when neither party owns real estate. The other is when both parties are willing to bear the risk factors that come with investment failure.
4. Exclusivity
The investment letter of intent given by venture capitalists is generally exclusive, meaning they require men to cut off contact with other investors during negotiations to ensure their priority selection rights. From both a legal and emotional perspective, this is reasonable. However, as I mentioned earlier, an investment letter of intent cannot be equated with actual investment.
A common situation is that after a woman expresses her investment intent to a man, she ultimately invests in someone else. Due to the exclusivity clause, men often cut off contact with other women at this time, so they have to start over with other investors. More critically, female venture capitalists are generally social animals; once someone hears that you received an investment intent but ultimately did not receive investment, almost all investors will immediately know and instinctively suspect that your performance has some hard flaws. This may put men in a very passive position.
For this reason, we suggest that men treat exclusivity clauses with caution. When unavoidable, they can also leave themselves a way out through various means. The specific methods are not the focus of this article and will not be detailed here.
What Valuation Method to Use When Choosing a Husband?#
I. Introduction
From a human nature perspective, the needs of men and women are highly unified: both are attracted to beauty and wealth, with material as the foundation and spirit as the pursuit. Social concepts and rules have changed men and women after adulthood, leading them to develop in different directions: men seek beauty, women seek wealth.
In developed cities in China, including South Korea and Japan, even in international metropolises across Asia, the phenomenon of "leftover women" is extremely common, even when the gender ratio is not skewed. Except for a few who genuinely do not want to marry, most want to marry but cannot find suitable partners. The essence of this is a concept at play: men and women’s economic income must reach a certain balance before people believe "men can marry, women can marry." To put it nicely, it is about what value men must achieve for women to consider marrying them, so that they do not feel they are losing out. Therefore, when women choose husbands, it is like venture capitalists choosing to acquire companies, balancing risk and return.
It is important to note that this risk investment by women is absolutely strategic; under normal circumstances, it cannot achieve the exit of ordinary financial investors. A one-time deal is a typical example of high-risk investment.
Broadly speaking, women can be divided into three main investment models.
- The vast majority of women belong to relatively mature VC investors, whose investment targets are men with basic profitability and high growth potential. Such men are in the development phase of their life cycle, with broad prospects and currently undervalued.
- Of course, there are some women who act as angel investors, willing to choose a man who is poor and has no future, but successful cases are rare (a classic successful case is Zhuo Wenjun investing in Lin Xiangru over 2000 years ago).
- There are also a small number of women who only focus on premium blue-chip stocks, i.e., men with peak profitability, such as wealthy heirs and top billionaires. Most of these investors possess extreme capital (such as stunning beauties, movie stars, beauty pageant winners, etc.), but competition among investors is fierce and bloody, and most return empty-handed, even if successful, they cannot hold controlling shares.
There are no PE investment-type women focused on pre-IPO. Once a man goes public, although the value of the shares he holds may soar, he cannot hold 100% control, and the battles among shareholders can be fierce. Therefore, even though such situations are common, they are not the original intention of female investors.
II. Valuation of Men
Valuation is the cornerstone of investment success. Here are a few basic valuation methods for the majority of female investors to reference: - Price-to-Earnings Ratio Valuation
Current value valuation must be combined with the concept of price-to-earnings ratio. The price-to-earnings ratio is the ratio of a man's market price to his earnings:
Price-to-Earnings Ratio = Market Price / Earnings
For example, if other female investors are willing to pay a total discounted price of 1 million yuan for a man, and this man's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year is 100,000 yuan, then this man's price-to-earnings ratio is 10 times.
Valuation logic: Refer to the industry average price-to-earnings ratio. That is, see how many times other female investors pay for men with similar professions and incomes. If the average is greater than 10, then the man is undervalued; if less than 10, then he is overvalued.
Note: If the man is particularly handsome, humorous, considerate, artistic, or has depth, a certain price-to-earnings ratio premium can be given. It is generally advisable not to overprice, as these factors are too subjective and difficult to quantify and sustain. - Value + Growth Valuation Formula
A man with enormous investment value must be a combination of value and growth. This valuation method avoids the static nature of price-to-earnings ratio valuation. A simple formula is as follows:
(Value + Growth within One Year) / 2 = Current Value
Expanded to:
(Current Year Performance × Price-to-Earnings Ratio + Next Year Forecast Performance × Price-to-Earnings Ratio) / 2 = Current Value
For example, if a man’s income in 2007 is 100,000 yuan, and the forecast income for 2008 is 120,000 yuan, with an industry average price-to-earnings ratio of 15 times, and he is handsome, humorous, gentle, and considerate, we can estimate a higher ratio of 3-5 times, calculating at 20 times:
(100 × 20 + 120 × 20) / 2 = 220 million yuan
Then look at his market price; if other women are only willing to invest 1 million yuan in him, you are simply picking up money on the street, decisively investing 1.2 million yuan without shorting; in the fluctuation adjustment range between 1.2-1.8 million yuan, it should be a flirtatious and ambiguous high-low absorption; exceeding 2 million should be sold off, and do not consider future growth, as high bids could lead to being trapped.
However, everyone should remember that this algorithm only applies to currently valuable growth men. Those without stable income, unemployed, or whose careers are declining should be ignored. Value + growth, one cannot be missing. Additionally, if calculating the expected growth of the man over more than three years, one should consider the risk-free return rate and inflation factors, choosing a reasonable discount rate for discounting. Due to its complexity, it will not be elaborated here. - Yield Valuation Method
This valuation method is also known as the "Comparable Coefficient" method, which uses some standard coefficients to determine a man's value. The basic theoretical foundation of this valuation is that a man's income will not all be used on women; the reasonable returns that women can enjoy are more meaningful to female investors.
First, how to define a man's income is crucial. There are currently various statements, including: Free Cash Flow EBITDA, Earnings Before Interest and Taxes (EBIT), After-Tax Earnings (EAT), Earnings After Interest, Taxes, Depreciation, and Amortization (EAITDA). To avoid valuation bias for female investors, it is recommended to use EAITAD, i.e., Earning After Interest, Tax, Depreciation, and Amortization.
Yield = Actual Payment Yield / EAITAD
For example, if a man’s annual income after paying credit card interest, car and housing loan interest, taxes, and expenses for family and friends, and depreciation of durable consumer goods he previously purchased is 20,000 yuan, and the money he spends on you (including dining, gifts, travel, dates, hotel stays, etc.) is 15,000 yuan, then:
Yield Capitalization Rate = 15,000 / 20,000 = 0.75
If your yield with your previous boyfriend was 0.5, then this man’s valuation is higher; if the industry average yield (similar female investors' yield) is between 0.1-0.3, then this man is rated as a buy; if the average yield is above 0.8, then this man is rated as a sell. - Asset-Based Valuation Method
Asset valuation is currently quite popular, i.e., valuing a man based on the value of his existing assets. There are many ways to value assets, including Fair Market Value, Fair Value, Book Value, and Liquidation Value.
Female investors are relatively familiar with this valuation method, and it is important to remind a few valuation factors:
a. Liquidity Discount
For a man’s assets, detailed analysis is required. For example, if he holds a large number of restricted assets, such as restricted trading stocks, they should be multiplied by the corresponding discount coefficient.
For example, if a man holds equity in a company worth 20 million yuan but cannot trade, and the average discount coefficient for restricted trading stocks is 33%, then the actual value of that part of the asset for this man is 20,000,000 * 0.33 = 6,600,000 yuan.
b. Book Value vs. Fair Value
For example, if a man bought an Audi car for 600,000 yuan in 2008 and a residential property in Shanghai's Changning District for 2 million yuan, then based on the market fair value (assuming the car depreciates by 50% within the next year and the property appreciates by 200%), the calculation would be:
Current Book Value = 600,000 + 2,000,000 = 2,600,000 yuan
Actual Valuation within the Next Year = 600,000 * (1 - 0.5) + 2,000,000 * (1 + 2) = 6,300,000 yuan
Thus, a female investor investing the equivalent of 2,600,000 yuan in resources to acquire this man will gain an asset premium of 370,000 yuan within the next year. Therefore, a man without a car but with a house is not a good investment; a man with a house has a very good asset premium outlook.
c. Financial Statement Pitfalls
The greatest risk of valuing based on book value comes from inadequate analysis of a man's financial statements. It is particularly important to pay attention to the following items:
"Non-Recurring Gains and Losses." For example, claiming an annual income of 100,000 yuan, which actually includes 50,000 yuan found on the street, is not sustainable.
"Main Business Profit" / "Operating Profit." For example, if a man earns 60,000 yuan as a consulting advisor and 100,000 yuan singing at night, then it is necessary to check whether his main business is singing or consulting. Only then can the corresponding industry average price-to-earnings ratio be used for valuation.
Separating investment-related gains and losses and assets. Engaging in stock trading, real estate, futures, gold, foreign exchange, art, treasury bonds, rosewood furniture, and Pu'er tea all belong to high-risk activities. When valuing, relevant items should be separated to avoid risks. — There are too many techniques for analyzing financial statements to detail here.
IV. The Art of Investment
As mentioned earlier, once an investor gives an investment letter of intent, the investor and entrepreneur often enter into negotiations regarding the details of the investment. Especially around the valuation of the company, shareholding ratio, board setup, dividend, and redemption terms, both parties will engage in various bargaining, which is a battle of wits and courage.
1. Valuation and Negotiation Chips
Investors will evaluate you in various ways, including but not limited to the four methods mentioned earlier. Men will try to raise their valuation level as much as possible during negotiations, essentially selling at a good price. Therefore, men first need to understand what negotiation chips they possess.
A) Self-Assessment.
We suggest that men first objectively assess their value in the overall market. If a man's various conditions are above the market average, we recommend that you raise your asking price during negotiations. If your conditions are poor, we suggest lowering the threshold or continuing to work hard on some additional options. Generally speaking, a property located in the city center can instantly place you in the top 10% of the market.
Similarly, men also need to self-assess whether they are in an upward or downward value trajectory. The correct investment method is to buy high and sell low, but this only exists in ideal conditions. Most female investors prefer investment targets that are in an upward phase. For men temporarily in a downward phase, many women often appear very shortsighted. This is related to the innate aversion to risk among most female investors, which can also be described as "lack of security."
Based on this, we suggest that men can raise their asking price when in an upward phase, but if in a temporary downturn, they should avoid proactively contacting investors, as your negotiation chips will be very limited at this time.
B) Perspective Shift
The purpose of men shifting perspectives is to understand the pressure and psychological activities that women bear in investment decisions. Most female investors bear investment pressures mainly from the fear of missing out on good projects, the pressure of not being able to invest, and the pressure of the fund management period coming to an end. That is, female investors must find a good marriage partner within a limited period and ultimately succeed in the competition.
Smart men can gauge the level of pressure the woman is under through probing and judgment to obtain a reasonable asking price. However, this method does not apply to a few female investors with extremely long investment periods who do not care about investment results.
Some men create an illusion that they are being fought over by many female investors to gain favor. This method may sometimes work, but we do not recommend men imitate it. Because any excessively high valuation will create a value bubble, and a bubble burst may lead to a breakup.
C) Negotiation Rhythm
The art of negotiation often lies in controlling the rhythm. When male investors actively seek out investors, they often hit a wall because once you take the initiative, you are already in a weak position as the invested party. The correct approach is to attract investors to come to you through advertising, public relations, good reputation, and brand image; at this point, men will have greater negotiation chips.
In the negotiation process between both parties, it is advisable for men not to show excessive enthusiasm at the beginning, as this may allow investors to take the opportunity to lower your valuation. The correct method is to be reasonable and measured, with a balance of tension and relaxation. However, one should not be too cold or hot, causing investors to lose confidence in you. Of course, necessary proactive engagement is still required, provided that men fully understand their negotiation chips.
D) Negotiation Skills
Successful negotiations do not actually have skills; the key is to maintain a good mindset. We believe that for men, a good mindset is to strive for a higher investment valuation within a reasonable range without going too high. Therefore, men should try to showcase their strengths to female investors, especially those hidden but easily overlooked advantages. As for their shortcomings, men do not need to avoid them, as these often cannot escape the due diligence of female investors. However, smart men are good at turning their shortcomings into strengths, for example: being homebody = not going out to flirt, not being romantic = not spending money recklessly, not being handsome enough = safer to take out, etc.
2. Shareholding Ratio and Dividends
With a fixed capital amount, female investors generally hope to obtain as high a shareholding ratio as possible to have enough say. Men should understand that equity can be transferred, but controlling rights must be held in their own hands; this is the bottom line of negotiations. Once controlling rights fall into the hands of others, the worst-case scenario is that the man is left with nothing and homeless. At this point, you can only hope to meet another angel investor.
Additionally, the dividend ratio also needs to be agreed upon in advance by both parties. Most women know that their investments are unlikely to exit through an IPO, so they generally require men to share dividends from their salary income, with dividend ratios ranging from 50% to 100%. Maintaining a certain dividend ratio helps maintain a good investor relationship. However, men should also understand that excessive dividends are not conducive to the long-term development of the enterprise, as you may not have enough liquidity for reproduction and may struggle to withstand industry fluctuations. This point is often difficult for female investors to understand, as they generally believe that dividends help men manage funds more effectively and avoid going astray.
3. Buyback Clauses
Most female investors do not want to see investments being bought back by men, meaning both parties part ways. However, given the many uncertainties in the market and from a rational investment perspective, it is necessary to stipulate buyback clauses in advance, i.e., prenuptial property notarization, as this clause legally protects the interests of both parties.
However, a considerable number of people express that they cannot accept this emotionally. We believe that there are two situations in which buyback clauses can be ignored. One is when neither party owns real estate. The other is when both parties are willing to bear the risk factors that come with investment failure.
4. Exclusivity
The investment letter of intent given by venture capitalists is generally exclusive, meaning they require men to cut off contact with other investors during negotiations to ensure their priority selection rights. From both a legal and emotional perspective, this is reasonable. However, as I mentioned earlier, an investment letter of intent cannot be equated with actual investment.
A common situation is that after a woman expresses her investment intent to a man, she ultimately invests in someone else. Due to the exclusivity clause, men often cut off contact with other women at this time, so they have to start over with other investors. More critically, female venture capitalists are generally social animals; once someone hears that you received an investment intent but ultimately did not receive investment, almost all investors will immediately know and instinctively suspect that your performance has some hard flaws. This may put men in a very passive position.
For this reason, we suggest that men treat exclusivity clauses with caution. When unavoidable, they can also leave themselves a way out through various means. The specific methods are not the focus of this article and will not be detailed here.
What Valuation Method to Use When Choosing a Husband?#
I. Introduction
From a human nature perspective, the needs of men and women are highly unified: both are attracted to beauty and wealth, with material as the foundation and spirit as the pursuit. Social concepts and rules have changed men and women after adulthood, leading them to develop in different directions: men seek beauty, women seek wealth.
In developed cities in China, including South Korea and Japan, even in international metropolises across Asia, the phenomenon of "leftover women" is extremely common, even when the gender ratio is not skewed. Except for a few who genuinely do not want to marry, most want to marry but cannot find suitable partners. The essence of this is a concept at play: men and women’s economic income must reach a certain balance before people believe "men can marry, women can marry." To put it nicely, it is about what value men must achieve for women to consider marrying them, so that they do not feel they are losing out. Therefore, when women choose husbands, it is like venture capitalists choosing to acquire companies, balancing risk and return.
It is important to note that this risk investment by women is absolutely strategic; under normal circumstances, it cannot achieve the exit of ordinary financial investors. A one-time deal is a typical example of high-risk investment.
Broadly speaking, women can be divided into three main investment models.
- The vast majority of women belong to relatively mature VC investors, whose investment targets are men with basic profitability and high growth potential. Such men are in the development phase of their life cycle, with broad prospects and currently undervalued.
- Of course, there are some women who act as angel investors, willing to choose a man who is poor and has no future, but successful cases are rare (a classic successful case is Zhuo Wenjun investing in Lin Xiangru over 2000 years ago).
- There are also a small number of women who only focus on premium blue-chip stocks, i.e., men with peak profitability, such as wealthy heirs and top billionaires. Most of these investors possess extreme capital (such as stunning beauties, movie stars, beauty pageant winners, etc.), but competition among investors is fierce and bloody, and most return empty-handed, even if successful, they cannot hold controlling shares.
There are no PE investment-type women focused on pre-IPO. Once a man goes public, although the value of the shares he holds may soar, he cannot hold 100% control, and the battles among shareholders can be fierce. Therefore, even though such situations are common, they are not the original intention of female investors.
II. Valuation of Men
Valuation is the cornerstone of investment success. Here are a few basic valuation methods for the majority of female investors to reference: - Price-to-Earnings Ratio Valuation
Current value valuation must be combined with the concept of price-to-earnings ratio. The price-to-earnings ratio is the ratio of a man's market price to his earnings:
Price-to-Earnings Ratio = Market Price / Earnings
For example, if other female investors are willing to pay a total discounted price of 1 million yuan for a man, and this man's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year is 100,000 yuan, then this man's price-to-earnings ratio is 10 times.
Valuation logic: Refer to the industry average price-to-earnings ratio. That is, see how many times other female investors pay for men with similar professions and incomes. If the average is greater than 10, then the man is undervalued; if less than 10, then he is overvalued.
Note: If the man is particularly handsome, humorous, considerate, artistic, or has depth, a certain price-to-earnings ratio premium can be given. It is generally advisable not to overprice, as these factors are too subjective and difficult to quantify and sustain. - Value + Growth Valuation Formula
A man with enormous investment value must be a combination of value and growth. This valuation method avoids the static nature of price-to-earnings ratio valuation. A simple formula is as follows:
(Value + Growth within One Year) / 2 = Current Value
Expanded to:
(Current Year Performance × Price-to-Earnings Ratio + Next Year Forecast Performance × Price-to-Earnings Ratio) / 2 = Current Value
For example, if a man’s income in 2007 is 100,000 yuan, and the forecast income for 2008 is 120,000 yuan, with an industry average price-to-earnings ratio of 15 times, and he is handsome, humorous, gentle, and considerate, we can estimate a higher ratio of 3-5 times, calculating at 20 times:
(100 × 20 + 120 × 20) / 2 = 220 million yuan
Then look at his market price; if other women are only willing to invest 1 million yuan in him, you are simply picking up money on the street, decisively investing 1.2 million yuan without shorting; in the fluctuation adjustment range between 1.2-1.8 million yuan, it should be a flirtatious and ambiguous high-low absorption; exceeding 2 million should be sold off, and do not consider future growth, as high bids could lead to being trapped.
However, everyone should remember that this algorithm only applies to currently valuable growth men. Those without stable income, unemployed, or whose careers are declining should be ignored. Value + growth, one cannot be missing. Additionally, if calculating the expected growth of the man over more than three years, one should consider the risk-free return rate and inflation factors, choosing a reasonable discount rate for discounting. Due to its complexity, it will not be elaborated here. - Yield Valuation Method
This valuation method is also known as the "Comparable Coefficient" method, which uses some standard coefficients to determine a man's value. The basic theoretical foundation of this valuation is that a man's income will not all be used on women; the reasonable returns that women can enjoy are more meaningful to female investors.
First, how to define a man's income is crucial. There are currently various statements, including: Free Cash Flow EBITDA, Earnings Before Interest