Blog
Unpacking the One-Page FP&A Operating Model: A Guide for Professionals
Creating a one-page FP&A Operating Model is akin to distilling a complex symphony into a single sheet of music. It's about bringing the essential notes... more »
Unraveling Accounts Receivable Modeling: A Deep Dive into the Classic and Collections Delay Methods
Accounts Receivable (AR) modeling is a vital cog in the financial modeling machinery, playing a significant role in managing cash flows and forecasting... 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 »
Mastering Vertical Financial Modeling: Scalability and Optimization
Last week, we talked through a "core structure" for all your models, which were built out in a mostly "horizontal" fashion, which means the model moves... more »
Building an Effective Financial Model: A Comprehensive Layout Guide
In the last couple of issues we've talked through some financial modeling best practices. But, how about a layout for an entire model, what might that... more »
Financial Modeling Mastery: Assumptions, Formula Consistency, and Placeholder Rows
Modeling "best practices" simply means building your model in such a way that is organized, understandable, and (hopefully) free from error. Picking up from... more »
Mastering Financial Modeling: Essential Best Practices Part 1
Modeling "best practices" simply means building your model in such a way that is organized, understandable, and (hopefully) free from error. Today's post is... more »
What's a Financial Model?
I'll never forget my early days on the job. "Excel" was one thing. But "Financial Modeling" was something else. Some elusive, highly-specialized construct... more »
Here's what an Adjusted EBITDA schedule looks like...
Here's what an Adjusted EBITDA schedule looks like:First though -- what are we building here?Adj EBITDA = an APPROXIMATION of the free cash flow of a... more »
Unlocking Advanced Excel: Using INDEX/MATCH with Multiple Columns
In today's data-driven environment, mastery of Excel is a non-negotiable skill. While functions like VLOOKUP and HLOOKUP are widely known, professionals... more »
The Art of Financial Modeling: Understanding and Leveraging the Revolver Schedule
In a previous post, I introduced the concept of the 'Revolver Schedule' in financial modeling. If you recall, a Revolver is a term we use to describe a... more »
An easy way to forecast capex
An easy way to forecast capex ↓Here's my favorite part about the budgeting process:It's late October... Revenue and EBITDA look good,you're about... more »
And here's another time I was completely stumped in private equity...
And here's another time I was completely stumped in private equity...We're all standing around the conference table and the partner says,"we can probably... more »
Mastering Inventory Forecasting: A Practical Guide for FP&A and Private Equity Professionals
In the simplest terms, Inventory is the stuff you're trying to sell. It is usually recorded as a current asset on the balance sheet. Inventory, often... more »
One my favorite little Excel tricks
One my favorite little Excel tricks:𝗦𝗶𝗻𝗴𝗹𝗲 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 format.It lets you add just the tiniest little space b/t your headers for a much cleaner look.Ta... more »
Anyone Designing FP&A Software Please Check This Out
Anyone designing FP&A software please check this out:Something I constantly run into in the Private Equity world is the concept of "add-backs."Meaning,... more »
11 abbreviations I thought might be helpful to clear up
11 abbreviations I thought might be helpful to clear up:◼️FP&A: Financial Planning & Analysis𝘐 𝘤𝘢𝘯 𝘴𝘵𝘪𝘭𝘭 𝘩𝘦𝘢𝘳 𝘮𝘺 𝘥𝘢𝘥, "𝘊𝘩𝘳𝘪𝘴 𝘸𝘩𝘢𝘵'𝘴 𝘍𝘗&𝘈 𝘴... more »
Ever googled directions to the airport?
Ever googled directions to the airport?How many routes do you get?Two?Three?Is one the clear choice?Usually. But — do they all get you there within... more »
How does someone make money in private equity?
How does someone make money in private equity?I mean beyond base salary anyway?The primary upside for someone in Private Equity is called "carried... more »
A beautiful, yet tricky, part of the modeling equation...
A beautiful, yet tricky, part of the modeling equation...What are the 𝗦𝗼𝘂𝗿𝗰𝗲𝘀 & 𝗨𝘀𝗲𝘀?𝗭𝗼𝗼𝗺 𝗢𝘂𝘁: the Sources & Uses show 𝘩𝘰𝘸 a company is purcha... more »
Semi-controversial statement...
Semi-controversial statement:(well, controversial for Excel at least...)I'm actually not a huge fan of "input pages."In some instances, sure, like:-- Model start date--... more »
Your 𝗘𝘃𝗲𝗻𝗶𝗻𝗴 𝗘𝘅𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗼𝗿 — one Excel tip to boost your financial modeling skills.
Your 𝗘𝘃𝗲𝗻𝗶𝗻𝗴 𝗘𝘅𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗼𝗿 — one Excel tip to boost your financial modeling skills.Tonight's Topic:𝘂𝘀𝗶𝗻𝗴 𝗡𝗔() 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗰𝗵𝗮𝗿𝘁𝘀Ever wish you could sh... more »
Modeling a detailed Private Equity waterfall
How to model a private equity waterfall. I see this modeled incorrectly all the time. aka the price/value of the company for sale. Typically... more »
New to the workforce? These 3 things will make your life so much easier
New to the workforce? These 3 things will make your life so much easier:1. Confirm receiptI'm not asking you sit by your phone. Just let me know when... more »
Is that all you ever want to do, modeling?
Is that all you ever want to do, modeling?I've heard that a lot. Modeling, for some reason, is dismissed as a "junior skill."I struggled with it for a... more »