LBO Model

This is an example of a standard LBO model. The model has been setup according to MDA's best practice modelling guidelines. The model produces an equity returns analysis on a private equity investment. The main outputs are exit IFRS, cash or cash multiples and value creation for both the firm and management.

Free Cash Flow to Firm DCF Valuation Model

This is an illustration of a standard free cash flow to firm DCF valuation model. The model has been setup according to MDA's best practice modelling guidelines.

Bloomberg Beta Interpretation

Excel Shortcut Card

All Excel users will benefit from knowing and using shortcuts from the simplest Ctrl-C to the most obscure of Excel shortcuts. Our modelling faculty has identified almost 40 useful shortcuts to make your use of Excel slicker and more professional.

Accounting

This one page takeaway provides a detailed flow diagram illustrating how the financial statements (balance sheet, income statement and cash flow statement) integrate.
This takeaway will help the user to:

• Understand how financial statement items interact with each other
• See how the income statement integrates into the balance sheet retained earnings line
• See how the income statement integrates into the cash flow statement
• Indirectly derive operating cash flow from a profit metric
• Correctly structure and integrate financial models

Valuation

This two page valuation takeaway provides a quick reference guide to the key technical skills necessary to perform a discounted cash flow valuation, including:

• Free cash flow to the firm derivation
• WACC calculations
• Cost of equity and debt calculations
• Terminal value calculation options
• Gordon's growth model
• Deleveraging and releveraging betas
• Implied growth rate calculations

Financing

A focused two page summary of the various equity and debt financing methods including descriptions, pros and cons.
The takeaway includes:

• Block trades
• Bookbuilt offerings
• Rights issues
• Investment grade loans and bonds
• Sub-investment grade loans and bonds

The IBD Toolkit

The IBD Toolkit is a checklist that can be used by analysts to sense check their valuations prior to submitting them for peer review. The toolkit is primarily focussed on sanity checking and benchmarking the valuation, such as:

• Reviewing the consistency of key drivers
• Ensuring that assumptions are consistent with the market
• Benchmarking valuations against research
• Knowing your sources and keeping back up copies
• Making sure that the big picture is considered

The toolkit is split into two separate sections:

• Comparable company and transaction analysis
• Discounted cash flow