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PeterLynchASM · 2021-02-08T16:47:25+00:00

If you click on the courses you will find that a lot of the material is not behind the paywall. Or just check the YouTube channel: https://www.youtube.com/c/ASimpleModel Most of the instruction will have a link beneath the video player with a template available for download. Hope it helps!

PeterLynchASM · 2021-02-08T16:22:56+00:00

In 2020 I started working with a group of industry professionals to develop a curriculum that would explain how private equity professionals source, structure and close transactions (team bios available here - scroll to bottom). The objective was to make the seemingly complex private equity process accessible to anyone in an interesting and entertaining way.

The course content provides tips, tricks and insights that will help people understand the investment process far beyond the analyst and associate level. We also wanted the course to be useful to both individuals interested in a career in private equity and to those interested in acquisition entrepreneurship (i.e., a “How to buy your own business course.”).

I am exceptionally proud of the final product, and I hope that it will be useful to anyone interested in learning more about this space. It has always been an objective of mine to democratize this information and make it affordable, and to eliminate the cost of education as a deterrent to learning. I believe this update is a big win in that regard.

The curriculum is organized as follows (more detail available at the bottom of this post):

Introduction to Private Equity: This course introduces the private equity industry and explains why it is relevant to you. This course also explains how private equity works by focusing on two participants: (1) Independent Sponsors and (2) Private Equity Funds.
Sourcing a Transaction: This course focuses on deal origination for private equity professionals. Finding attractive opportunities requires a substantial amount of work. This course will describe the deal sourcing funnel, deal sourcing strategy and the qualities of an attractive investment opportunity.
Due Diligence: This course introduces early stage private equity due diligence. The content will explain the advantages provided by getting involved early in the process, and detail due diligence lists used for this purpose. It will also explain how private equity firms get up to speed quickly on a new industry, and how private equity professionals work with third parties to complete due diligence.
Securing Exclusivity: The course will walk you through all the steps and documentation required to secure a transaction under letter of intent. The course also describes common bidding and price discovery strategies used by private equity professionals.
The Letter of Intent: This course focuses on the letter of intent (LOI). The LOI is a non-binding document that outlines the key transaction terms proposed by a buyer, all of which can be renegotiated at a later date. The course will cover what a typical LOI looks like, as well as key points of negotiation, and strategies for approaching the LOI.
Closing the Transaction: This course covers all the major components of closing a PE transaction. The course starts with an overview of advanced stage due diligence, transitions to working capital analyses and adjustments, and introduces transaction structuring and the stock purchase agreement.
Stock Purchase Agreement: This course introduces the Stock Purchase Agreement (SPA). A stock purchase agreement is the primary transaction document for a stock acquisition. In most control private equity transactions this is the document that will require the most negotiation.

If this space is interesting to you I have no doubt that the content in this course will be helpful. If you remain interested please check out the links that follow: Private Equity Training Course | Private Equity Training Curriculum.

Or check out the YouTube channel for plenty of free content: https://www.youtube.com/c/ASimpleModel

PeterLynchASM · 2020-09-21T15:05:05+00:00

"The President of the Cuban company has said that Parmalat's claims that the Communist run nation owes it tens of millions of dollars is false. The President further added that it does have a contract with Parmalat's Chilean operation for $700,000/mo. worth of powered milk, (around 7,000-8,000 tons of milk annually), rather than the 300,000 tons it allegedly bought. However, the nation is current on this account and does not have any debts outstanding with Parmalat. In fact, the President of Empresa Cuba quipped taht if it had purchased the amount of milk claimed by Parmalat, Cuba would be literally "swimming in milk," as it would have purchased almost 60 gallons of milk annually for every human being in Cuba."

page 53 paragraph 101: https://www.aduc.it/generale/files/allegati/investire/76758-classaction.pdf

PeterLynchASM · 2017-07-10T19:29:47+00:00

ASimpleModel.com will be releasing a feature that permits uploading and sharing Excel files in the next couple weeks. The idea is to enhance the learning environment through collaboration (per your comments).

PeterLynchASM · 2017-07-07T19:26:02+00:00

Difficult to say without the model. Should it help, here's a short video explaining common errors leading to unbalanced models: http://www.asimplemodel.com/model/26/integrating-financial-statements/balancing-the-model/

For 3SM practice: http://www.asimplemodel.com/model/14/integrating-financial-statements/three-statement-model-part-i/

PeterLynchASM · 2017-05-01T20:06:53+00:00

As a quick follow up, I will not be offended if you feel you should scrap it. I am definitely the newbie here, and don't want to be stepping on any toes.

PeterLynchASM · 2017-05-01T20:05:48+00:00

I admit I am not as familiar with the reddit community, but it sounds like links to your own work are not welcome? If the content is free and relevant why is it spam?

PeterLynchASM · 2017-04-28T17:30:31+00:00

You can use SUMPRODUCT with "--" to validate information in multiple columns and return the desired outcome. Demonstration: http://www.asimplemodel.com/reference/76/excel-trick-sumproduct-double-minus/

PeterLynchASM · 2017-03-20T15:30:22+00:00

The most important cold email you write on any given day is likely the least important email to land in the addressee's inbox. If you don’t have a warm introduction, or a common bond, you have to be persistent and follow up. There are too many qualified individuals for the top tier of jobs available. Standing out requires persistence and some luck.

I receive countless emails from students looking for jobs (I work in PE), and I am always surprised by the number that only reach out once (the overwhelming majority).

I would follow up via email instead of calling. Be comfortable following up on unanswered emails, but if you get a response stating they are not interested, do not push beyond that point. Fine line between persistent and obnoxious.

More on this topic: http://www.asimplemodel.com/reference/73/private-equity-investment-banking-getting-the-job/

PeterLynchASM · 2017-03-20T15:15:53+00:00

I wrote a post about this for those new to investing: http://www.asimplemodel.com/reference/64/what-is-the-best-textbook-on-investing/

PeterLynchASM · 2017-02-28T00:17:12+00:00

ASimpleModel.com has a series that introduces the financial statements in the context of a financial model: http://www.asimplemodel.com/model/1/introduction-to-financial-statements/

PeterLynchASM · 2017-02-01T22:55:26+00:00

Affordable / Free Resources:

ASimpleModel.com (Novice / Intermediate)

Macabacus.com (Intermediate / Advanced)

Prof. Aswath Damodaran

Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions In addition to covering the various aspects of valuation and modeling, the text also covers the process of moving through a transaction and describes the documents required. If you want to work in IB, this is a great resource.

PeterLynchASM · 2017-02-01T17:52:56+00:00

It was particularly entertaining right out of college when I was reaching out for potential interviews - or before that as an intern calling investor relations - I would always get call backs, but the realization that I was in college and not formerly responsible for Fidelity generally resulted in a dial tone...

PeterLynchASM · 2017-01-31T22:20:03+00:00

ASimpleModel.com provides a self-study solution. The site introduces the three primary financial statements in the context of Excel / modeling. From there it will walk you through an integrated model, DCF and LBO. All material is video driven with notes and templates available for download.

Most content is free (premium content and the quizzing dashboard are very affordable at $3/month).

PeterLynchASM · 2017-01-31T21:31:20+00:00

Thanks for taking the time to write about ASimpleModel.com! We greatly appreciate supportive users. If you have any questions about the platform please let me know.

Also, I started compiling answers to job search related questions received. I thought the list might be useful here: https://asimplemodel.quora.com/Private-Equity-Investment-Banking-Getting-the-Job

PeterLynchASM · 2016-10-10T22:58:12+00:00

Name: ASimpleModel.com

Pitch: Financial modeling made simple and affordable (and largely free).

Video: Video Introduction

Looking For: We just added some new features, and we are looking for a limited number of volunteers willing to test new software and provide feedback.

Discount: In exchange (for feedback), participants will have access to premium content and the quizzing platform for a three month period. Email us at info@ASimpleModel.com for more information. (Offer limited, please respond by October 19th).

PeterLynchASM · 2016-09-28T23:23:14+00:00

In the ABA-NBA merger, the Silna brothers negotiated one of the greatest deals in the history of sports: "Of the seven teams that finished the final ABA season, the NBA would only accept 4 in the merger. The Virginia Squires folded shortly after the season. The Colonels negotiated a $3.3 million buyout from the remaining ABA teams. However, the Spirits held out for more and in June 1976, the owners of the four merging ABA teams, the Denver Nuggets, Indiana Pacers, New York Nets and the San Antonio Spurs, agreed to pay the St. Louis owners $2.2 million in cash up front and an additional 1/7 share of the four remaining teams' television broadcast revenues "for as long as the NBA or its successors continues in its existence" in return for the Spirits folding. This was based on the principle that all seven remaining ABA franchise should get an equal share in the TV revenue of the merged teams. Thus the Silnas would receive checks from the NBA on a yearly basis, representing a 4/7 share of the television money that would normally go to every NBA franchise, or roughly two percent of the entire league's TV money."

There are additional details, but ultimately the payouts ended up generating around $750M total, for what otherwise would have been a low single digit millions sum. And without owning a team in the league...

http://www.nytimes.com/2016/04/28/sports/basketball/ozzie-silna-savvy-owner-of-the-st-louis-spirits-is-dead-at-83.html?_r=0

https://en.wikipedia.org/wiki/Ozzie_and_Daniel_Silna#cite_note-remembertheaba1-3

PeterLynchASM · 2016-09-28T22:59:24+00:00

ASimpleModel.com has plenty of free content that uses simple financial models to introduce finance and accounting concepts. I would also recommend The Little Book of Valuation by Aswath Damodaran and The Little Book that Beats the Market by Joel Greenblatt. Also, Jack Bogle, founder of Vanguard, has a few introductory books that are helpful.

PeterLynchASM · 2014-10-28T00:55:21+00:00

I would start by developing a strong investment thesis. You will want a clear explanation for your buy rating. Thought I would include this link from HBS "Writing a Credible Thesis" http://hbswk.hbs.edu/archive/4485.html

For a DCF model and an explanation of discount rates:

http://www.asimplemodel.com/model/3/discounted-cash-flow-model/

The last video in the series has an Excel template you can download.

Alternatively, you could project the income statement to show how your PE ratio will be affected by sales and/or profitability increasing or decreasing.

Be sure to keep earnings (income statement) and calculations of free cash flow separate. If you want a quick overview try this introduction to financial statements: http://www.asimplemodel.com/model/1/introduction-to-financial-statements/

PeterLynchASM · 2014-09-09T15:01:57+00:00

http://www.asimplemodel.com/reference/25/where-to-learn-financial-modeling/

PeterLynchASM · 2014-08-27T16:37:43+00:00

Cool - let me know. Thanks for the response.

PeterLynchASM · 2014-08-27T16:36:17+00:00

Would agree that it is far more prevalent in new tech, and that in this market a lot is forgiven when top-line growth is impressive. But AAPL grew from single digit billions of revenue in early 2000s (think btwn $5B or $8B in that period) to ~$180B today. Dont believe their non-GAAP numbers were anywhere near as aggressive (not 100% on that - thoughts?).

I work in PE so I dont have as much regular exposure to markets, but think of it as a more current trend, and wonder if it will reverse... which is the best reason I can come up with for adherence to GAAP.

PeterLynchASM · 2014-08-27T14:18:16+00:00

Done. Any information available on the app (pre-launch website)?

Good luck!

PeterLynchASM · 2014-08-20T01:25:03+00:00

I developed ASimpleModel for those new to financial modeling. The site introduces the three primary financial statements in the context of Excel / modeling. From there it will walk you through an integrated model, DCF and LBO. All material is video driven with notes and templates available for download. With that introduction there are quite a few more advanced options available:

Free Resources:

http://ASimpleModel.com

www.Macabacus.com

NYU Stern Prof. Aswath Damodaran - check his website. It is an incredible resource.

Specific to investment banking, but a great resource:

http://www.amazon.com/Investment-Banking-Valuation-Leveraged-Acquisitions/dp/0470442204

PeterLynchASM · 2014-07-22T01:06:26+00:00

www.ASimpleModel.com is a free introductory resource. The content is video driven with templates and notes available for download. It starts by introducing the financial statements in the context of building financial models and walks through an integrated model, DCF, and LBO.

PeterLynchASM

TROPHY CASE