LBO Model Toggles Financial Modelling Private Equity by Matt - July 15, 2019August 1, 20190 Building a Full LBO Model We discuss the theory behind the LBO and also how to build one in other posts. All our readers should know how to put together a basic and bare bones LBO - but in reality an LBO model can be very functional for any situation that
Looking at Capital Expenditures for Investment Bankers Corporate Finance Financial Modelling by Matt - July 13, 2019August 1, 20190 Capex capex capex - investment bankers love to talk about capex because it is a key component of the free cash flow formula. In reality, it is not something that bankers ask candidates about in interviews just for fun - capex is one of the most common line items that we
Private Equity Modeling Test Financial Modelling Private Equity by Matt - July 10, 2019July 10, 20190 It is fairly well documented that investment bankers aspiring to exit into private equity have to do an Excel test/financial modeling test as part of the interview. We confirmed that this is generally the case for interviews at any reputable PE firm - and it is also the case when investment
Investment Banking Modeling Test / Case Study Financial Modelling Interviews by Matt - June 23, 2019June 23, 20190 Most investment banks have a fairly gruelling interview process that we outline in our interview section. We also are now offering mock interviews for those who do not have friends to practice with. Each interview goes through a technical question section, usually with some combination of analyst/associate/VP, as well as several
Understanding a Merger and Understanding a Merger Model Corporate Finance Financial Modelling Mergers & Acquisitions by Matt - March 24, 2019March 24, 20190 A Lesson in Mergers & Acquisitions Theory Step back for a second and forget all of the accretion/dilution, tax implications and purchase price allocation jargon that goes into mergers and acquisitions and read this to understand the basics of mergers and acquisitions. A firm buys another firm. There are no synergies and
Spreading Trading Comps for Investment Banking Financial Modelling Summer Analyst Trading Comparables by Matt - March 15, 2019March 17, 20190 Why Look at Comparable Companies for Valuation In the investment banking interview, new candidates need to know that the comparable companies approach is one of the primary valuation methods. It is also the most commonly used for benchmarking companies and are included in almost every client presentation - even if only
Modeling Commercial Real Estate Financial Modelling Real Estate Real Estate Investing by Matt - March 3, 2019March 3, 20190 Before going into some real estate strategies, here are some key financial assumptions in modeling out the return on investment for your real estate investment. Real Estate Operating Assumptions Net Operating Income (NOI) Net operating income is the revenue of the property or property portfolio less any operating expenses. This is before maintenance
LBO Modelling: Bank Revolver, Minimum Cash Balance and Cash Sweep Financial Modelling Private Equity by Matt - November 23, 2017May 27, 20180 Today we are going to discuss a few staples of LBO modeling that give new analysts trouble. Knowing how to model revolvers, minimum cash balances and cash sweeps are also important to get right in any private equity case study or interview. They are also important in general in making
How to Get Cash Taxes for Financial Modeling Financial Modelling by Matt - September 16, 2016September 16, 20180 This is a simplified example to understand the mechanics of cash taxation at a high level and should not be relied upon for anything other than educational purposes Cash Taxes in Financial Analysis What companies report as accounting tax and what they actually pay in terms of cash to the government can
Microsoft Excel Best Practices For Investment Bankers Part II Financial Modelling by Matt - July 16, 2016May 27, 20180 A managing director decides to follow up with a client in terms of pitching a prospective acquisition target. From: MD@yourbank.com To: Bob@client.com Hi Bob, Hope you’ve had a nice weekend. Would you be interested in taking a look at some updated valuation materials for Paris Baugette as per our discussion in April? Kind Regards, MD From: MD@yourbank.com To: