Blog
A complete Scenario Manager on one page...
Selecting Scenarios We’re using the classic Base, Upside, & Downside as scenarios in this example. The scenarios can be selected in Column B using a... more »
How I Build Seasonality Curves in Financial Models
What's a Seasonality Curve? Not all business out there consistently generate Revenue each and every month. Lots of business are considered "seasonal,"... more »
A List of Links to all my Free Private Equity Content
I've listed nearly all of my free private equity content below. This is mostly a drag-and-drop from a LinkedIn post, so please forgive the shorthand.... more »
IOI vs LOI vs PA: a comparison of the common documents you will find in an M&A transaction.
🤝I’m happy to team up with David Edgar to bring some legal insight to the world of M&A. — — — An indication of... more »
I might know what EBITDA 𝘪𝘴, but how about 𝘸𝘩𝘺?
You probably know what EBITDA is, but why is it built that way? Let's start with what it is: it’s an approximation of the profitability / operating... more »
Inventory Modeling for Beginners
◼️ What is Inventory (in simple terms)? “Stuff I’m trying to sell.” ◼️ Where can I find it? On the balance sheet. (Current Asset)... more »
How to Model the Sources and Uses and Pro Forma Balance Sheet
Want to advertise with us? Click here. It's Movie Day! Last week, we took a detailed look at calculating EBITDA. Specifically, we talked about how to... more »
Different Ways to Value a Business
Want to advertise with us? Click here. How to Value a Business One of the more interesting realizations I had in my "PE days" is that valuation is as... more »
What's an Investment Banking Teaser?
Want to advertise with us? Click here. What's a Teaser? Last week we talked through the big picture. The "roadmap" to closing a deal. Before you punch... more »
A Private Equity Due Diligence Roadmap
Want to advertise with us? Click here. Welcome to Part Three! Welcome to Part Three of the Financial Modeling Educator. I'm assuming you feel pretty... more »
Top 3 Reasons Your Balance Sheet Doesn't Balance
Why Is My Balance Sheet Not Balancing?Trust me, I know how frustrating it is when you balance sheet doesn't balance.So let's keep it short and... more »
How To Build the Balance Sheet in 10 Steps
The 10 Steps to Balance Pls Fix Thx There's nothing quite like staring at an unbalanced Financial Model, wondering what isn't working, as the clock... more »
How to Model the Statement of Cash Flows
Wait, Cash Flows before Balance Sheet?? I thought the refrain was "Income Statement, Balance Sheet, Statement of Cash Flows." You're right, that's how most... more »
Forecasting the Income Statement
Forecasting the Income Statement Thankfully, forecasting the Income Statement is one of the more straightforward Financial Modeling concepts, because we're... more »
The Actual Big 4: Revenue, Gross Margin, EBITDA, Cash
Finding the North Star Last week we introduced Three Statement Modeling and how it's had the single-largest impact on my career above all other skills. This... more »
Three Statement Modeling: The Most Valuable Skill I've Learned In My Entire Career
Three Statement Modeling I know that post title seems like clickbaity nonsense but it's not. The single most valuable skill I have learned in my entire... more »
Breaking Down Adjusted EBITDA in Quality of Earnings: A Step-by-Step Guide
Start With Net Income Net Income serves as our foundational figure, but since it doesn't equate to cash, adjustments are needed. It's essential to... more »
Unpacking the One-Page FP&A Operating Model: A Guide for Professionals
𝗣𝘂𝗿𝗽𝗼𝘀𝗲 𝗼𝗳 𝗢𝗻𝗲-𝗣𝗮𝗴𝗲𝗿 Creating a one-page FP&A Operating Model is akin to distilling a complex symphony into a single sheet of music. It's about br... more »
Financial Modeling Mastery: The Essential Skills Beyond Excel
Financial modeling skills are more than just proficiency in Excel. They comprise a nuanced understanding of Accounting, Finance, and effective tool use. In... more »
Unraveling Accounts Receivable Modeling: A Deep Dive into the Classic and Collections Delay Methods
Introduction: Accounts Receivable (AR) modeling is a vital cog in the financial modeling machinery, playing a significant role in managing cash flows and... more »
Mastering Vertical Financial Modeling: Scalability and Optimization
Layout of a Vertical Model Last week, we talked through a "core structure" for all your models, which were built out in a mostly "horizontal" fashion, which... more »
Building an Effective Financial Model: A Comprehensive Layout Guide
Building on What We've Discussed In the last couple of issues we've talked through some financial modeling best practices. But, how about a layout for an... more »
Financial Modeling Mastery: Assumptions, Formula Consistency, and Placeholder Rows
What are Financial Modeling Best Practices (part 2)? Modeling "best practices" simply means building your model in such a way that is organized,... more »
Mastering Financial Modeling: Essential Best Practices Part 1
What are Financial Modeling Best Practices? Modeling "best practices" simply means building your model in such a way that is organized, understandable,... more »
What's a Financial Model?
"The Year Was..." I'll never forget my early days on the job. "Excel" was one thing. But "Financial Modeling" was something else. Some elusive,... more »