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You don t have to be a finance wiz to create financial models
A World Bank investment officer gives investors an easy-to-understand way to accurately assess a company s valuation and profit potential.
This essential guide teaches investors, bankers, and private equity professionals how to build financial models in Microsoft Excel. It covers every aspect of building a financial model and provides a broad understanding of the actual mechanics of models, as well as their foundational accounting and finance concepts. It includes Discounted cash flow (DCF) modeling, Excel's functions, which are built-in formulas that allows powerful calculations in the spreadsheet, and expanded coverage of modeling concepts.
Eric Soubeiga is Investment Officer at the World Bank. His finance career spans private equity, investment banking and transactional advisory gained in the City of London. Prior to his finance career Eric worked in academia and was involved in research and teaching at the University of Nottingham (UK).
List of contents
Contents
Preface ix
Acknowledgments xiii
PART 1 Modeling Theory1 Introduction to Modeling 3
2 Best Practice Principles 7
PART 2 Modeling Practice-Initial Case Studies
3 Case Study 1: The Phone Factory 19
4 Case Study 1: Modeling the Front and Inputs Sheets 23
5 Case Study 1: Modeling the Calculations Sheet 35
6 Case Study 1: Modeling the Outputs Sheets 63
7 Case Study 2: Options Appraisal 75
PART 3 Modeling Practice -Further Case Studies
8 Case Study 3: The Phone Factory Revisited 93
9 Case Study 4: Growth Capital 125
10 Case Study 5: Leveraged Buyout 181
11 Other Tricky Modeling Case Studies 251
PART 4 Modeling Practice -Model Audit
12 Checking for and Fixing Modeling Errors 273
PART 5 Conclusion
13 Conclusion 289
Index 293vii
About the author
Eric Soubeiga is Investment Officer at the World Bank. His finance career spans private equity, investment banking, and transactional advisory gained in the City of London. Prior to his finance career, Eric worked in academia and was involved in research and teaching atthe University of Nottingham (UK).
Summary
All the precision of financial modeling - and none of the complexity. Evidence-based decision making is only as good as the external evidence on which it is based. This title offers a simplified method for building the fast and accurate financial models serious evidence based decision makers need.
