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