_edited.png)
Market Equivalent Portfolio Statement (MEPS)
One ownership position. One common reference point.
Different people can view the same ownership from different perspectives. MEPS gives those perspectives one common economic reference point.
MEPS creates one ownership position. It brings purpose, value, cash flow, liquidity, risk, capital requirements, timing and optionality together across the complete ownership.
1
Illustration One
One ownership view
Strategic Mandates define purpose. Ownership Architecture defines how the assets are understood and governed. MES provides the market-equivalent basis. MEPS combines them into one ownership position.
MEPS brings the three disciplines together into one ownership position.
Strategic Mandates
Cash Cow
Growth Engine
Exit Play
Legacy Asset
Ownership Architecture
Principal
Family
Board
Management
Advisers
Ownership Architecture
Purpose
Cash Generation
Position
Optionality
Liquidity
Time Horizon
Risk
Capital Requirement
MEPS
One Ownership Position
Time Horizon
Optionality
Cash Generation
Capital Requirement
Purpose
Position
Risk
Liquidity
The ownership portfolio can be understood through purpose, position and consequences at the same time.
The ownership disciplines become one ownership view.
2
One Ownership Reality
Different ownership conversations can begin from the same ownership position.
Every ownership conversation begins from a different perspective.
MEPS brings those perspectives together into one ownership position, making the ownership consequences of every decision visible across the entire portfolio
Optionality
Cash Generation
Position
Time Horizon
Capital Requirement
Purpose
Risk
Liquidity
Family
What does the wealth consist of, and what must it support over time?
Management
What does ownership require from the business?
Principal
What ownership position do I want to create?
Board
What is this company expected to contribute to the portfolio?
Advisers
What structure supports the intended ownership position?
Every ownership conversation begins from the same ownership position
The shared reference point for better ownership decisions.
Why It Matters
Without one ownership position
-
Different conversations begin from different reference points.
-
Consequences are harder to compare.
-
Decisions are understood locally.
Everyone is correct. Nobody sees the complete ownership position.
With one ownership position
-
One ownership reference point.
-
Comparable consequences.
-
Better conversations.
-
More coherent decisions.
3
Illustration Three
Ownership considerations become ownership consequences.
Every decision changes one or more dimensions of the ownership position. Expressing those consequences through the same model makes different decisions comparable.
Ownership Considerations
Investment
Commit further capital to an operating company
Distribution
Increase recurring distributions to the family
Succession
Transfer ownership to the next generation
Exit
Realise a long-held holding
Ownership Considerations
Time Horizon
Optionality
Cash Generation
Capital Requirement
Purpose
Position
Liquidity
Risk
Expected Ownership Consequences
The same ownership language makes different consequences comparable.
4
Illustration Four
Every decision creates a new ownership position.
A decision changes the expected ownership position. That new position can be understood before commitment and measured afterwards.
Current Ownership Position
Optionality
Cash Generation
Time Horizon
Purpose
Capital Requirement
Position
Liquidity
Risk
Expected Ownership Position
Optionality
Cash Generation
Time Horizon
Purpose
Capital Requirement
Position
Liquidity
Risk
Ownership decisions are understood through the position they create.
5
Illustration Five
Ownership continues.
The ownership position becomes the starting point for the next ownership conversation. Information, discussion, decision and consequence form a continuous ownership discipline.
Current Position
Ownership Conversation
Expected Ownership Consequences
Decision
Updated Position
Next Ownership Question
MEPS creates one ownership reality.
MEPS creates one common ownership position from which the owner, family and organisation can think, speak and make decisions consistently.
The Ownership Framework
01
Strategic Mandates
02
Ownership Architecture
03
Market Equivalent Statement
04
Market Equivalent Portfolio Statement