Business Articles, Investing

Berkshire Hathaway Annual Meeting

If your anything like myself? You want to attend the Berkshire Annual Meeting if you can. Today’s meeting did not disappoint. Warren Buffett and Charlie Munger put on a show that we in the Finance and Business space will be dissecting and analyzing for decades.

Berkshire Hathaway

Click here for Berkshire’s Website

Since I am certain you do not want me continuing with my ridiculous interference. Without further ado, Here is today’s Meeting from CNBC.

Berkshire Hathaway Shareholders Meeting 2022 LIVE STREAM

Did you catch my article on Finance Models? (CLICK HERE)

The two Oracles of Omaha Nebraska, Charlie Munger and Warren Buffett.

Investing is Simple. The lesson’s stacked up from Both Mr. Buffett and Mr. Munger are this. Invest in things that will be around a long time. And invest in the things we love. Like See’s Candy, and Coca-Cola. That’s great advice and advice I live by. I hope you got a bang for your buck visiting my short post about the Annual Meeting today. Thank you for dropping by.

Godspeed JS

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Accounting, Finance Articles

The Three Financial Statements

What are the three financial statements in business?

Amazingly most who do not have a Finance or Business background struggle with this question. And these individuals fail to see the future scope of looking at these Documents produced while in the course of business. Most small businesses rely on sophisticated Software to do their books. And I have even seen a Junkyard owner use a simple checkbook register for his sophisticated software to control profits and losses of his small empire. LOL

I can not stress “HOW IMPORTANT IT TRULY IS FOR A ENTREPRENEUR OR Anyone in business to sincerely go take a accounting course online or at a community college.”

-Big 4 Accountant Partner “MY GOOD FRIEND” John.

One thing is for sure? If your not using these statements in your business? Your missing critical finance intelligence and future opportunities. These are the three Financial Statements every Entrepreneur or Business professional needs to become very intimate with.

In conclusion for this short post. Make sure your being educated by a Accounting course. Taking a basic Accounting course will change your business career. Because it did mine. Thank you for reading below is a Basic Accounting Course Video for your future success.

HAPPY COUNTING AND LEARNING!
GODSPEED

JS

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Business Articles, Investment Banking, M&A Intelligence Services, Mergers and Acquisitions

Mergers & Acquisitions Strategy and Intelligence

Today’s post will be revealing a creative Strategy a British Businessman used for a unlikely Acquisition netting him 60 million pound richer on just 4 million in finance. This post will share more about his creative strategy, and ask the question? Did he use secret intelligence from former British Intelligence to make a deal of a lifetime?

Mergers & Acquisition Case Study

This is Mr. Peter Jones. Mr. Jones usually appears on the Hit TV Show Dragon’s Den on the BBC. During one episode many years ago on the BBC. Peter interviewed a quiet Businessman that did not seem like a creative business magician. When this man was pressed in the interview about his transaction that netted him 8 figures? He revealed a creative strategy that made him an 8 figure fortune.

The man we are talking about in this article is British Businessman and Financier Mr. Chris Dawson. Mr. Dawson negotiated his way to a very lucrative Transaction of a lifetime. Paying literally pennies on the pound.” Making him 60 million pounds richer all of just 4 million in finance.

“How did he do this?

Business Communications Strategy

Did you know as a Business owner and Community leader how you communicate with the Public and Business community is more important than ever? Most Executives and business owners would rather stay quiet and out of the news and it’s ridiculous untrue headlines. However there are a select few Business figures Id like to point out who made it work for them. One of those people is my friend Mr. Marcus Lemonis CEO and Chairman of Camping World and Host of the Hit TV Show The Profit. Marcus has basically turned Prime Time Television into a Deal Flow PR machine for his Company. And if you really consider all things being equal? So has Mr. Peter Jones with his BBC Series and Appearances on Dragons Den. It’s literally the Entrepreneurs Deal Flow Machine. It’s pure Brilliance under the understanding of being a Reality TV Series. This type of strategy is not cheap. However I feel both of these fella’s understand full well the power of the Mass Media. So much so they are laughing all the way to the bank.

This next use of Mass Media and creative strategy for business exhibits pure brilliance.

Developing Business Strategy

This brings me to my point for Strategy on today’s post. A British Businessman named Chris Dawson used the Media clearly to his advantage. Basically what he did was this. The small Business Finance community was informed through Business NEWS, a failing Business Department store was accepting offers. However here is what happened next?

Chris used a someone other than himself to drop a hot tip to several journalists that cover this area in the business papers. The business tip shared that the Failing Department Store had five buyers already in line to buy the failing business. The Media Reported this story. This reported new story basically worked so well. No other buyer wanted to pursue making a offer for the failing company. Leaving Chris as the only Offer which happened to be a low ball offer. This worked in his favor. He cornered and had tricked the competition in to moving on. Leaving him as the only last option for the Failing Business. LOL HAHA!

Since he closed this Transaction. You can already see this strategy secured him a deal of a Lifetime. What other factors made this opportunity so lucrative for Mr. Dawson? Chris owns a chain of Department Stores and it was super easy for him to liquidate all the extra product he had just acquired. Making him a very very rich man. Plus He used the Media to kill off interest from other buyers. That is sure brilliance. But that’s not all that he did to secure this huge Business victory. In the end? It’s likely Mr. Dawson was not only just lucky. Word on the street from my own sources within my community share? He had help from a shadowy group of former British MI6 professionals. We will never know. But I can share this. His deal wasn’t all luck.

M&A Deal and Market Intelligence

Competition Is Fierce. Have a team of Advisors willing to secure on the ground intelligence rather than finance intelligence is vital to successful transactions. I do have several Attorneys and Accountants that have confided in me some of the large firms have become relaxed on the due diligence standards. To combat this when it matters the most? You need professionals who can ensure victory with information not easily found with normal due diligence.

The current Mergers and Acquisitions Market is so competitive and fierce most Private Investors and Private Equity Buyers do sometimes need extra information on markets and on Targets. With all the moving parts and info needed to make a decision? The finances sometimes do not tell the entire story. Wouldn’t it be nice if your executive team had peace of mind with secret information like Chris Dawson? We can offer advisory consulting, and Executive management consulting other firms can not. If your team needs an extra layer of security and intelligence? CONTACT ME NOW. Myself and my veteran brothers come from a variety of backgrounds and all of us have served inside the Intelligence and Military Special Operations community.

Using our teams specialized training and Global War on Terror experiences. Our professionals can ensure your team of executives a extra layer of security while your team of executives and Attorneys are at the negotiating table. Or for when making a group decision to move forward with a transaction. Our small group includes service within Army 75th Rangers. Army Special Forces Green Beret NCO’s, and Senior Officers, and experienced Operators from Marine Special Operations.

In conclusion developing a strategy and securing additional information for business transactions is a smart play. The only thing that truly matters in todays hyper competitive environment is information others are trying to hide. It could very well be a life changing event, or put in play a series of events that create a extraordinary win for you and your team. I hope you enjoyed todays post. And I will hope you found this story and strategy of a British Businessman useful.

Godspeed.

JS

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Mergers and Acquisitions

Dan Peña

Mr. Dan Peña the Trillion Dollar Man was very generous in tweeting and sharing the interview I conducted with him. For the full interview? Click Here

Respect! 100%

Dan Peña’s Website of Interviews.

I made it on his super short list of Interviews. 100% Awesome. Click Image to go to Dan’s Website

If you have not read Dan Peña’s Book “Your First 100 Million?” Do so today, you will likely learn a few things you never thought possible. To Download his book? CLICK HERE

Your First Hundred Million Book Image Dan Pena

Dan Peña Gutherie Castle

Gutherie Castle Scotland Dan Pena

Guthrie Castle valuation? The Castle and estate is 156 acres and just about 500 years old. Mr. Pena rents out the Castle grounds for Events like Marriage Ceremonies and other get togethers. This is not longer the case and this majestic property is private now. \We don’t know the exact worth of the castle but it’s been said to be worth over $25 million!

Godspeed

JS

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Business Articles, Investment Banking

The Best Investment Banks In Kansas City

Yesterday an Investment Banker from JP Morgan Wall Street in New York City asked me, If I knew who was the top Investment Banks in the Kansas City area? I had to stop myself and ask the same question. The simple truth is? I did not know. So I figured it would be good idea to research the question and find out. Thinking about this in depth? I honestly should know a few of these professionals in case I am ever looking for a specific opportunity, Deal Flow, or advisory referrals. So I started calling around about who’s who? And these are the recommendations that made sense.

Interestingly if I was in New York City we would normally be sharing the large Wall Street Investment Banks as my choices. I have several relationships with many of these Investment Bankers but none are in Kansas City. Normally I would list the top Investment Banks for this Article. Banks like Goldman Sachs, JP Morgan Chase, Bank of America Securities, Morgan Stanley and many more. However since I am not in New York City I must look at the smaller Investment Banks in Kansas City. These are going to be my short list of choices for the short term. Or at least until I am able to meet more of our local Investment Banking Professionals in Kansas City.

Its true the Kansas City area only has a few known local Investment Banks within our community. The first Investment Bank I would like to recommend is our most well known. Interestingly, I have had the privilege of meeting it’s Founder many years ago. It’s founder Mr. G. Kenneth Baum and His family are known supporters of our gorgeous Gallery Nelson Atkins Museum of Art. And the families philanthropy work is known and generous as well. Mr. Baum’s Son is now in Command of the Family Firm and has been leading the firm to a exciting future.

George. K. Baum & Co.

George K. Baum & Co Websiter

Frontier Investment Bank

The second in line is Frontier Investment Bank and for all intensive purposes according to my Business Attorney this small boutique Bank is top notch and the list of Transactions completed long. When experience, leadership, and market research count? Im very positive that if you need your business sold at fair and favorable terms. This is most likely a Investment Bank that can do that for you and help with a long list of Advisory services. I will be reaching out to ask the Lead Sr. Executive and Attorney Mr. Patrick J. Trysla, “How he has built his remarkable team.”

Country Club Finance | CC Capital Advisors

Several weeks ago I opened my Email and found typed out a personal Invitation to attend Country Club Banks CC Capital Advisors State of the M&A market in Kansas City. I sincerely did not know what I was about to find. But when I arrived I met someone who honestly spoke my Language “FINANCE”. And this alone made me think? Maybe this is going to be very interesting. See here’s the thing. For about 2 and 1/2 years I have been basically alone here in Kansas City as a Entrepreneur with a incredibly unlikely story.

Most local Investment Bankers and Finance professionals have zero clue I really am trying my best to learn all about Finance. And most importantly be of service and be valuable for the Finance business community in Kansas City. But the reality is this. I have not been able to capture the interest of this very exclusive community until now.

Let’s finish with this CC Capital Advisors. I walked in Country Club Bank and dropped my Coat off for this evening reception and events. Immediately I spotted a few older Gentleman who looked like they were the Professionals who knew what they were doing. I immediately could tell they have been to war and won within the Finance community. I was impressed to be able to meet CC Capitals Team. First off to shake my hand was the warm astute Mr. Christianberry who greeted me casually, and next to him was fellow MD’s Mr. Conway and Mr. Hense Jr. who also welcomed me. First things first. I could honestly tell these fella’s are very experienced. It was clear they were literally professionals I should strive to be like. They welcomed be warmly and we talked shop and the current M&A market for about 10 minutes.

One thing that sincerely I should probably share? I am genuinely thankful for the Privilege of meeting these Managing Directors of CC Capital Advisors. I hope one day soon to spend some more time with these fellas. They truly impressed me. The presentation CC Capital Advisors was spearheaded by Stephanie and Mr. Conway. The market of M&A in the Kansas City area, basically confirmed what I have been hearing and seeing from New York Investment Bankers. When the entire Presentation was finished? I sincerely was blown away at the facts and market information I had just reviewed. It was exactly what I had been seeing from my vantage point across the country. These two did a fantastic job. I was again very Impressed.

Please take the time and if your in this small community or interested? I would like to suggest you read the State of M&A in Kansas City provided and written by CC Capital Advisors. They honestly have done a outstanding Job making the information easy to follow. I wish others in other Markets like the South West would be this easy. Here is the link to the Report. PUBLICATION M&A KANSAS CITY

In conclusion I would like to include CC Capital Advisors on this short list of Investment Bankers in Kansas City I would recommend. Its a very small community. And it’s been my experience? If you treat others well? They will be helpful to you as entrepreneur. And if your Investment Bank and Advisory Team have my tough stamp of approval? You must be doing something right.

This list is obviously going to be very short. However within a month or just inside a few weeks? I will be able to expand this short List. Giving a more detailed look at each Investment Bank, listing more Banks that have trust in this space, and what makes them special? As with anything. Highly specialized industry leaders, professionals, financial services and capabilities are the deciding factors who becomes the most influential and trusted Organization within any industry. Please Stay tuned as I meet these professionals and begin listing what makes their firms the choice for you.

What is Kansas City's Best Investment Bank?

According to Investment Group Partner and Notable Kansas City Entrepreneur Kc’s Best Investment Bank is G.K Baum & Co. Sharp chose this on the merits in light of him personally knowing and trusted this Banks Founder. Legendary Financier George Kenneth Baum.

Thank you for reading, and I just need to share this thought. This list will not include local Business Brokers. This listing will be my personal picks of who I trust as a Partner. Since I am on a World Class team of Investment Professionals.
Stay tuned. JS.

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Business Articles, Mergers and Acquisitions

I Interviewed The Trillion Dollar Man Dan Peña

So a few month’s back I reached out to the QLA Founder who is known online as the one and only Mr. Dan Peña. When I submitted my Questions to him little did I know his answers would be just as entertainingly colorful as his Youtube videos.

Here is the thing. I knew nothing about Dan until one of my close Mentors who himself is a Bad Ass Senior Big 4 Partner sparked my curiosity one day while on a Zoom call in September. Sure I have seen suggested videos about Dan before. But I paid them no interest. But this day I made a note and went to watch what this guy was all about. What I found was? Dan’s videos are about helping normal average non high performers to try and reach or obtain a level of Business sophistication that makes them super wealthy through a methodology called QLA.

Dan’s coaching and teaching videos are also meant to help the Entrepreneurs who struggle with sales so they have a fighting chance. And to toughen up so to speak. Dan is a Military Veteran like myself, he served around the Vietnam era and honestly as a fellow Veteran? Dan is 100% hard as fucking nails.

And so I asked him a few Questions only a Military Veteran would be able to ask. And these are colorful his answers…

Mr. Dan Peña’s Backstory

Before becoming very wealthy by taking Great Western to an IPO on the London Stock Exchange Youtube Sensation and QLA Founder nicknamed the Trillion Dollar Man Him Self Mr. Dan Peña, was busy serving in the United States Army. (DANS WEBSITE)

Dan Peña began his career as a financial analyst on Wall Street. … He went on to become president of Great Western Resources, Inc., a Houston-based oil company eventually listing his Company on the London Stock Exchange. After a Board of Directors shake up, Dan Walked away after the dust settled with a very large multi million dollar pay day. (Dan Peña Youtube Channel) Click pic for Youtube Channel.

I asked Dan many questions. But to keep this article short for all intensive purposes? Here are the answers that have the most value for you. Thank’s DAN it’s a privilege to interview a fellow Veteran.

How Dan Peña Made His Millions?

Dan Pena with 100 million dollar check

Dan Peña began his career as a financial analyst on Wall Street. … He went on to become president of Great Western Resources, Inc., a Houston-based oil company eventually listing his Company on the London Stock Exchange. After a Board of Directors shake up, Dan Walked away after the dust settled with a 400 million dollar pay day.

-QLA can it work for any veteran?

ANY VET THAT HAS TRUE COMMITMENT & FOCUS, PLUS HE NEEDS 2 BE REALLY HUNGRY!

-What is the key to becoming Successful and established as a Investor?

SUCCESS IN ANYTHING IS ALL ABOUT FOCUS!

“WARNING” IF you find profanity offensive, and if you have trouble with realizing the truth about yourself? This is not for you. DAN Will not spare your feelings. Read on at your own peril.

-Do you feel being a Combat Trained Ranger Trained Infantry Officer helped you be successful in the tough and difficult world of Investment Finance?

IN THE 60’S, WHEN I WENT THRU INFANTRY OCS, FROM DEC 1966 TO JUN 1967, RANGER TRAINING CAME AS PART OF INFANTRY OCS – BUT WE GOT NO BADGE CERTIFICATION! Ranger TRAINING WAS NOT AS LONG AS RANGER SCHOOL – BUT EXTREMELY INTENSE!

BUT NO DOUBT, IT TUFFENED US UP LIKE NOTHING IN CIVILIAN LIFE! IN THOSE DAYS, THEY LITERALLY BEAT US – PUT BATTERY CABLES 2 UR BALLS – PUSHED U OUT OF TREES WID UR ARM/LEG TIED, 2 DISLOCATE UR JOINTS – PLUS IF CAUGHT IN TERRIST TACTICS, STAKED U OUT ON AN ANT HILL & POURED HONEY OVER U – LEAVING U A COUPLE DAYS! MY BEST MAN ALMOST DIED ON SUCH A HILL!

SUCCESS IN ANYTHING IS ALL ABOUT FOCUS!

-How do you scout for talent?

GREAT POTENTIAL, LEAVE GREAT FACT PATTERNS OF PAST ACTVITIES!

-How do you acquire Deal Flow?

THRU R DREAM TEAM BOARD & R OUTSIDE LAWYERS/ACCOUNTANTS, PLUS R UR BANKS!

-Where do you see your Private Equity Group in 10 years?

WE R NOT PE! BUT QLA WILL BE AROUND 4 EVER! I HAVE BIN WORKING THE MODEL 4 MORE THAN 50YRS!

GOOD HUNTING!

Mr. Pena’s Controversial Teaching methods are honestly how you build winners. The Military Trained him for War, he trains young men at his Castle in Scotland to win.

Did you happen to catch my latest article News interview on the latest Acquisition? “HERE”

I was surprised that Dan truly does want what’s best for all people. And the straight facts are Dan doesn’t like to see weakness within his fellow Entrepreneurs. His twisted love albeit fucking twisted and dysfunctional is meant to be a Soldiers Affection in a way. You have to be a Soldier, Sailor, Airmen or Marine to understand where I am coming from. And this is why so many men who did not serve in uniform find him offensive. Business is fucking hard. And he want’s to transform you to be able to accept the ridiculous rejection you will face if your in any business. That’s why he behaves the way he does.

What is Dan Peña's Military Ranks?

Lt. Dan Peña US ARMY

Dan Peña was discharged from the United States Army at the Rank of Lieutenant

To all my fellow Veterans, Men or Women, Bad Ass Infantry or Sailors that man the Conning tower on submarines. Here is a Cheers to you. As I sign off? I hope you found this interview useful, I know I had a blast conducting it.
As we say in the Marine Corps. SEMPER FI

-DOC OUT!

JS

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Corporate Finance

Corporate Finance Skills | Financial Model Types

I imagine your like myself and wonder “How to be valuable and indispensable to business leaders?”

To drive home my point? I would like for you to take a piece of paper and write down all the skills you personally have, then I want you to write down these words Trust, Loyalty, Reliability. Most college students look for and want a comfy job. But honestly if you have no skills that make you a attractive candidate? You will likely have a very difficult time finding a Company that will want to train you from scratch. Not impossible. Just difficult. You will be out of luck. But what if there was a easier better way? There is Hombre!

If you want to be indispensable to Business Leaders? This post will help you begin that process. This post will detail several Corporate Financial Skills you need to master. Which will make you more attractive as top shelf talent for Corporate Business leaders. Keep reading. This post is written for you.

Can you keep your mouth shut? Can you faithfully complete the mission or Jobs handed to you? Are you loyal? If the answer is no to one of these questions? Your like a stump and deadweight. Your going to be avoided by like the plague. However if you have Financial Literacy, growing experience, and Corporate Finance skills along with a trustworthy good attitude, and you are reliable? You will be a hot commodity and business leaders will be seeking you out.

Got any Skills?

Often times when I am meeting Government leaders in City, State, or Federal office they recognize right away I am a take no prisoners no bull shit type of Entrepreneur. I always keep learning new and useful Bad Ass skills. This makes me a Killer to many Business leaders and Politicians. Being a Jack of All trades has it’s uses. Right now I am studying daily Python Coding Courses and zeroing my sights on Financial Modeling to sharpen my Corporate Finance skills. That means I am sharpening my Business spear. Doing whatever it takes to be a successful team player. And especially adding value for my personal Business Career. I am positive my Partners and Mentors Investment Firm will find my new skills valuable as we evaluate Transactions.

Corporate Finance Modeling

I shouldn’t have to share with all you Entrepreneurs that if your continuing to learn? Your going to be very valuable to Private Equity, Venture Capital, Mergers and Acquisitions Investment Banking, Banks, Big 4 Accounting firms or even within Mergers an Acquisitions. Learning new Corporate Finance Skills will separate your value from most other people. A good Analyst who has experience is highly sought after by large firms. So learning Financial Modeling does have it’s benefits.

“How to learn Financial Modeling?”

This skill alone will propel you above others easily making you a competent Analyst within the Corporate Finance space. I highly suggest you first become Financially Literate before pursuing advanced Corporate Finance Training. The video below, will share some basics Financial Modeling and demonstrate several Different Types of Models.

How to learn Financial Models?

To learn financial models most times a person must just learn step by step within a training program explaining the different Financial Model types and how each model is used. There is not easy way to learn except by doing. This guide can help explain financial models to you.

The Three Statement Financial Model in Detail VIDEO

“The Different Types of Financial Models”

If your anything like myself learning new skills does not come naturally. However with perseverance, time, personal effort and luck? The books, and content you study do tend to start making sense. That growing experience is a investment into your future success. And so let’s make a investment into that future success right now and here on my blog. These are the different types of Financial Models you need to learn if you want to be in Corporate Finance.

The fundamental building block of all financial models is the three statement model. This model includes components that lay out

  • Assumptions
  • Income Statement
  • Balance Sheet
  • Cash flow statement
  • Support Schedules
  • Charts and Graphs

When you look at this model in Excel you will immediately see the Income Statement, Balance Sheet, and Cash Flow Statement are laid out for the purpose of analyzing historical results, Establish Forecast Assumptions, Building the Forecast, Set the foundation for more advanced modeling.

What are Corporate Finance Financial Models?

Corporate Financial Models take mathematical values that are used to calculate assumptions to value businesses and their assets and also for forecasting and budgeting purposes related valuations, debt, equity and other values within business

Discounted Cash Flow Model

The Next type of Model is the (DCF) Discounted Cash Flow analysis model. Or DCF model. This includes all the three standard statement model plus a extra little section all about free cash flow and evaluation.

Components of the DCF Model

  • Everything as the three statement model
  • Free Cash Flow (Firm or Equity)
  • Terminal Value
  • Weighted Average Cost of Capital
  • Net Present Value Using XNPV
  • Internal Rate of Return using XIRR

What is the Purpose of DCF Model?

The Purpose of the DCF Model is,

  1. Valuing a Project, Business, or Investment Opportunity
  2. Determine “How much to pay for a Acquisition?”
  3. Assess the Impact of strategic initiative
  4. Internal FP&A
  5. Raising Capital

What is DCF mean in Financial Models?

A DCF means Discounted Cash Flow Model

Budgeting and Forecasting Models

A Budgeting and Forecasting Model is prepped and used to manage operations in House. It’s usually a monthly type model that monitor the cash inside of a business on a monthly basis. It’s basic forecasting.

The Components of this Model?

  • Assume Monthly Finances
  • Drivers of Operations
  • Three 3 Financial Statements (Previously Mentioned)
  • Ability to “Roll Forward” the Financial Model
  • Charts and Graphs for Visual demonstrations

The Purpose of Budgeting and Forecasting Model

  1. Internal Executive Level Planning
  2. Budgeting and Forecasting
  3. Measuring Results and Performance
  4. Strategic Planning
  5. Evaluating Performance of Business

The Valuation Model

The Valuation Model does include a (DCF) and a comparable analysis of a type of Valuation. But also includes these components listed.

Components of Valuation Model?

  • Comparable Company Analysis
  • Precedent Transactions
  • DCF Model
  • Football Field Chart

What is the Purpose of the Valuation Model

  1. Value a Business
  2. Summarize the Valuation Methods
  3. Create Outputs, charts and graphs for presentation
  4. Present Analysis for Investment Banking & Private Equity Transactions

What is a Valuation Model in Corporate Finance?

Valuation Models in Corporate Finance value the business, summarize the Valuation Methods, Create Outputs, Charts, Graphs and Presentations for demonstrating value of a Business

Introduction to Corporate Finance Course: VIDEO

This is an Advanced Model for Mergers and Acquisitions (M&A)

A M&A Model is a very advanced Financial Model. To start in detail? The M&A Model has the three statement model and plus the DCF Model. And will include Operating Scenarios and Valuation Models and more.

Components of the Mergers and Acquisitions Model

  • Includes Three Statement Models and DCF Model
  • Operating Scenarios
  • Consolidated or Pro Forma Model
  • Transaction Assumptions Including (Synergies, Financing, take over premium)
  • Sensitivity Analysis
  • IRR and Share Price Impact
  • Accretion- Dilution Analysis

The Purpose of the Mergers and Acquisitions Financial Model?

Primarily the purpose is to evaluate M&A Transactions, Determin how much to pay for an asset or transaction and more.

  1. Valuing a Target Business
  2. Determine how much to pay for a acquisition
  3. Compare Cash Vs. Share consideration
  4. Evaluation Synergies and take over premiums
  5. Asses the net impact of the Acquisition
  6. This is used mainly in Investment Banking and Corporate Development

What is a M&A Financial Model?

Mergers and Acquisitions Finance Models determines how much to pay for a Acquisition, compare cash vs. share consideration, evaluation synergies and take over premiums, asses the net impact of the acquisition, and is used mainly by Investment Bankers and Corporate Development.

The Leveraged Buy Out Model

The leveraged Buy Out Financial Model is a extensive 6 stack of models to give you the absolute best analysis available for layered analysis.

The Components of the LBO Model

  • Three Statement Model and Operating Model
  • Operating Scenarios
  • Transaction Assumptions (Financing, Debt, Tranches, Takeover premiums)
  • Debt and Interest Schedule
  • Levered IRR analysis by investor criteria
  • Sensitivity Analysis

The Purpose of a Leveraged Buy Out Financial Model

  1. Value a target Business
  2. Determining How Much To Pay For An Acquisition?
  3. Asses How much leverage can be used
  4. Maximize the Equity IRR
  5. Evaluate the Scenarios and Sensitivity
  6. Obtain Financing and make a investment decision

This post was written in hopes to give you several main types of Financial Models used in Corporate Finance. I sincerely feel if you learn all of these and continue to learn as a Entrepreneur, as a Corporate Finance Analyst or Investment Banker? You will be valued and needed inside Private Equity, Investment Funds, Investment Banking, Wall Street Boutiques and even Big Firms like Blackstone and the Big 4 Accounting firms. Please take what you want from my growing experience. And Use it. It is a privilege you shared a little of your time here and found my blog useful. Thank you. And to all the Business leaders inside the Corporate Finance or Business Space? If you are needing some Professional Skills that I can provide? Please contact me “HERE” . I would be happy to help. Thank you for reading. Godspeed.

JS

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