How to Model the Sources and Uses and Pro Forma Balance Sheet

How to Model the Sources and Uses and Pro Forma Balance Sheet


2 minute read

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It's Movie Day!

Last week, we took a detailed look at calculating EBITDA. Specifically, we talked about how to quantify and defend discretionary adjustments proposed by Management.

So, once we can all actually agree on EBITDA, what happens next?

Now we have to actually purchase the company, and this is done in two parts:

  1. The Sources & Uses
  2. The Pro Forma Balance Sheet

Now, as much as I'd love to type all this out, it just wouldn't get the point across quite like video would.

So for this week it's movie time!

I explain everything in the video below (links to YouTube).

Watch the video here.

Like I mentioned in the video, you can grab the blank template here to follow along (don't worry, you won't be re-subscribed since you're already here).

Thoughts on the Video?

I know that one was kind of long, but overall, what did you think of the "video style" of this newsletter? Would you like to see more of these (or less)? You can reply directly to this email and let me know, thanks!

That's it for today. See you next time.

—Chris

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See the whole model

That video is just one of many topics covered in my Financial Modeling courses, so hopefully you got a sense of my "style" and learned something new! If you found it helpful, please consider enrolling and learn to build the entire model.

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