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7 Lessons Learned Building Hundreds of Financial Models

7 Lessons Learned Building Hundreds of Financial Models

05/14/2024 5:55am 4 minute read

Intro I’ve built hundreds of Financial Models over the years, and frankly don’t even want to know how many hours I’ve spent... more »

Sometimes the Model Needs to be Complicated

Sometimes the Model Needs to be Complicated

04/30/2024 7:02am 4 minute read

Intro I commonly preach simplicity when it comes to Financial Modeling. Afterall, most financial models are completely bloated with stuff you... more »

7 M&A Concepts You Must Know if You Work in FP&A

7 M&A Concepts You Must Know if You Work in FP&A

04/25/2024 5:43am 8 minute read

Remember When I Said… …that FP&A and Private Equity are deeply intertwined? This post is no exception. Reminder, the ethos of all my... more »

3 Things to Make You a Good Modeler (Excel is last)

3 Things to Make You a Good Modeler (Excel is last)

03/28/2024 6:30am 4 minute read

Setting the Record Straight Like any Finance pro, I love Excel (who doesn’t?). But being good at Excel is just one small piece of being a good modeler,... more »

Take the Headache out of Building the Sources and Uses.

Take the Headache out of Building the Sources and Uses.

03/05/2024 6:29am 5 minute read

Intro Straightforward in concept, but oddly tricky to model, the Sources and Uses is a critical part of M&A modeling that you need to... more »

Doomsday Cash Runway (with template)

Doomsday Cash Runway (with template)

02/21/2024 6:50am 2 minute read

You’ve been there, right? Big night out with the buddies. One too many sodas. Your alarm goes off. It’s 6am. Time to get ready for work. Fun... more »

It’s Time We Simplified Cash Flow Modeling

It’s Time We Simplified Cash Flow Modeling

02/08/2024 2:02pm 5 minute read

Intro Cash Flow Modeling: one of the more cryptic and misunderstood concepts in Financial Modeling. It’s time to simplify this whole exercise, once... more »

What is the best practice for financial modeling in excel

What is the best practice for financial modeling in excel

02/04/2024 1:31pm 8 minute read

What is the best practice for financial modeling in excel? "Financial modeling sits at the core of the finance industry, providing insights into future... more »

A Simple Guide to ROI and IRR (and why you need both)

A Simple Guide to ROI and IRR (and why you need both)

01/30/2024 12:08pm 5 minute read

Intro When evaluating an investment, especially in the Private Equity setting, two terms are often thrown around: ROI IRR What are they, and why do we need... more »

My Story of Working on the Lehman Brothers Bankruptcy

My Story of Working on the Lehman Brothers Bankruptcy

01/26/2024 6:42am 4 minute read

Intro Most of my posts are "how to" based. After all, my goal is to help you become a better Financial Modeler. This week I thought I'd mix it up and tell... more »

Understanding SDE vs Adjusted EBITDA

Understanding SDE vs Adjusted EBITDA

01/16/2024 6:16am 5 minute read

Introduction: SDE vs Adjusted EBITDA, what exactly is the difference? When assessing the financials of a company, two terms often surface in the realm of valuation... more »

Two Modeling Approaches to Working Capital

Two Modeling Approaches to Working Capital

12/20/2023 6:43am 5 minute read

Intro Let’s get “into the weeds” a bit this week and talk through a critical skill for financial modeling: how to model the Working... more »

The Art of 'Good Enough': Balancing Perfection and Practicality in Financial Modeling

The Art of 'Good Enough': Balancing Perfection and Practicality in Financial Modeling

12/07/2023 6:24am 4 minute read

Introduction In the meticulous world of financial modeling, the quest for perfection is a common pursuit. As financial professionals, we often find ourselves... more »

PayPod: Building Better Financial Models with Chris Reilly

PayPod: Building Better Financial Models with Chris Reilly

12/06/2023 11:00am 3 minute read

In this engaging conversation, Chris Reilly, founder of Mission Capital Consulting and Financial Modeling Education, joins the PayPod podcast to discuss... more »

The First 100 Days After Close

The First 100 Days After Close

12/01/2023 6:16am 5 minute read

Intro I talk a lot in this email series about how to build certain elements of financial models. But what we don't talk about as much is when this stuff... more »

The Matching Principle Visualized in Excel...

The Matching Principle Visualized in Excel...

11/14/2023 6:22am 4 minute read

What is the Matching Principle? In the world of financial accounting, the Matching Principle stands as a cornerstone, ensuring that companies accurately... more »

Building a Cohort Analysis in Excel

Building a Cohort Analysis in Excel

11/13/2023 6:12am 3 minute read

Understanding Cohort Analysis: A Deep Dive Cohort analysis is a powerful tool used in business analytics to understand the behavior of specific groups over time.... more »

Difference between LBO Model and FP&A Model

Difference between LBO Model and FP&A Model

11/07/2023 6:14am 3 minute read

Here are the primary differences between an LBO Model and FP&A Model... LBO Model Often complicated in its structure, an LBO Model is shorter-term in... more »

Debt Issuance Costs: Modeling Convenience vs. GAAP Accuracy

Debt Issuance Costs: Modeling Convenience vs. GAAP Accuracy

10/25/2023 7:09am 4 minute read

In the world of financial modeling and M&A transactions, debt often plays a starring role. However, there's a nuanced area that doesn't always get... more »

FP&A Operating Model: The exact layout I use almost every time

FP&A Operating Model: The exact layout I use almost every time

10/23/2023 5:57am 3 minute read

Here’s the exact layout of nearly every FP&A Operating Model I build… The information flows from right to left, meaning: Summaries < —... more »

EBITDA Changes in M&A (viewed by month)

EBITDA Changes in M&A (viewed by month)

10/20/2023 5:52am 3 minute read

Ever wonder how EBITDA changes in an M&A transaction (pre- and post-close)?  This post walks through the differences... EBITDA, as Defined This... more »

Free Cash Runway Template in Excel

Free Cash Runway Template in Excel

10/17/2023 6:56am 2 minute read

Forget 13 weeks. Let's get real. This is my "Doomsday Cash Runway" Template. (with a free download at the end 🔽) tl;dr just grab the template here.... more »

Modeling Accounts Receivable with OFFSET in Excel

Modeling Accounts Receivable with OFFSET in Excel

10/13/2023 6:19am 2 minute read

How to use the OFFSET function to build collection delays in Accounts Receivable... To be honest, the OFFSET function always used to scare me: it looks... more »

Stress test: Want your model to be good? Then make it absurd...

Stress test: Want your model to be good?  Then make it absurd...

10/11/2023 6:08am 2 minute read

What am I talking about really?  Creating a "stress test." You've built this fancy model, and things "look pretty good." But at the same time, you... more »

An Entire Private Equity Transaction on One Page

An Entire Private Equity Transaction on One Page

10/10/2023 6:07am 3 minute read

Here's how I fit a private equity transaction on one page. This is an example of what you would show a Managing Partner before moving forward with a deal.... more »