interesting to watch the spreadsheet take shape - i have no idea whats involved here but seems like qualified folks would be able to follow along well.
@martinsafarian4404
23 күн бұрын
Video starts at 14:50
@praveen111989
8 ай бұрын
Amazing content, cannot believe someone will post something like this for free on the internet.
@kellenjemeyson7072
8 ай бұрын
Show the part where you lay off all the front line staff to cover the debt service
@Nomad8188
Жыл бұрын
In your NWC Schedule you had a miscalculation. Time stamp, 1:01:20. You multiplied cogs twice rather than days. It should be 61 for days payable outstanding.
@cameronweber2043
12 күн бұрын
He catches this error like 5 minutes after
@migueltavarez23
9 ай бұрын
Awesome video, it would be good if you also put the keyboard entries so we can see the shortcuts you use in excel 👍
@harlansmith7193
9 ай бұрын
He probably learned those shortcuts through countless hours of excel though. It's not impossible to do but you'd need like some key record software real time showing this or something that he'd have to systematically post through his vid, I think. There is another way to do super basic shortcuts though, (might not be what he's doing), just by holding/pressing [alt], it will shortcut you to any specific part of the "excel UI interface" i.e. file, home, insert, page layout, etc... That's probably a big part of how he has his incredible speed also while he's masterfully using excel :)!!
@ballsyclan7913
Жыл бұрын
A couple of questions: 1) Should the Minimum cash amount be included under "Uses" given that should be the minimum operating cash needed to operate the business and therefore included 2) Why is OID not included as part of the Uses? 3) How come the existing cash is not used to net off the refinanced debt portion?
@felipedebaere2185
Жыл бұрын
Valid questions which I would also like to see answered
@financeinterviewcoach-josh5963
Жыл бұрын
Great questions. I simplified this model a bit for the audience who are just undergrad university students so that's why there are some inconsistencies. 1) Yes minimum cash should be a use here 2) OID was not included here to simplify the model since I figured this would be hard enough to understand already for the audience 3) Normally cash on balance sheet for a public company or large private company can be used as a source. For a mid-market private company, it's often cash-free. It wouldn't net off though. But I assumed cash free transaction in this model to simplify things for the audience.
@ballsyclan7913
Жыл бұрын
@@financeinterviewcoach-josh5963 Got it, thanks for sharing and totally understand that models can become very granular and complex so there is a need to simplify. Thank you!
@avarma618
7 ай бұрын
@@financeinterviewcoach-josh5963 A little confused about min cash. Isn't that only accounted for as a use in a cash-free debt-free deal? I would assume that it is inherently going to be in the offer value under uses otherwise.
@saudarshi6916
2 ай бұрын
I wish I saw this video 5 years ago, Great job!
@lskee4179
Жыл бұрын
Randomly stumbled across this, this is awesome! New Sub
@farhanashaik238
7 ай бұрын
Thanks for the video. Please prepare an interview/career guide for private equity so that we can study it and Ace interviews. Thank you.
@thechanagal396
2 ай бұрын
When you stepped up PP&E by 15% when you did the purchase price allocation, how come it didn’t create a deferred tax liability
@alexandervalladares2501
2 ай бұрын
This is an excellent video … Thank you
@Fact-Flingofficial
7 ай бұрын
Plzzzzz try to upload dcf i like your videos too much man
Josh - would it ve possible to get hold of a copy of the case study instructions?
@financialrecovery453
3 ай бұрын
Great to watch. Well done!
@DH0518
2 ай бұрын
1:28:35 Did you deduct Term Loan Mandatory Amortization twice?
@Mr3921151
2 ай бұрын
yes agreed i believe he did...i had the same question.
@SouthsideWing
4 ай бұрын
Great stuff. Have been practicing several times
@akinwunmizainab6070
4 ай бұрын
Can you pls recommend website to learn investment banking from scratch, majorly practicals that involves excel
@felipedebaere2185
Жыл бұрын
Thank you for this content boss!
@financeinterviewcoach-josh5963
Жыл бұрын
Anytime! Cheers. More to come :)
@lukasfinster7890
4 ай бұрын
great stuff!! Have learned a lot - i have tried to replicate it but noticed that cash - interest is not considered. Could you please explain?
@safeershahid9150
4 ай бұрын
Hi! its an amazing tutorial. please share the practice file so we practice along with the tutorial.
@ahmedosama5205
Жыл бұрын
Amazing Video ! Thanks
@financeinterviewcoach-josh5963
Жыл бұрын
No problem! I'm glad you liked it.
@beyondalpha2437
5 ай бұрын
Hi, firstly thank you for the wonderful video. Just one question 1/ you put in as "Gross profit - SG&A = EBITDA" 2/ isn't that supposed to be"Gross profit - SG&A = EBIT"?
@hrishikeshshinde5150
5 ай бұрын
I dont think so. First one is correct
@eamonnarasaratnam7213
4 ай бұрын
no, neither depreciation nor amortization are included in SG&A
@lindsaybok9002
2 ай бұрын
This video is amazing and really on point even for a current analyst myself! Is there any way you can send the answer sheet? I could not find the link for it and would be hugely appreciated if you could share the link!
@paronzoda
9 ай бұрын
Really interesting video, tho could you open a few more tabs pls ;)
@frankyohance4625
Жыл бұрын
This is awesome! Can we download the case study and the xls sheet somewhere?
@financeinterviewcoach-josh5963
Жыл бұрын
2 days ago (edited) Thanks so much! I appreciate the kind comment. I don't offer the Excel files, as they are proprietary files that I have spent countless hours developing and are part of my paid interview prep services, but feel free to check out my links for more free interview prep and financial modeling tips: linktr.ee/financeinterviewcoach
@ajaydhameliya5793
Ай бұрын
What is happening to cash that you adjusted in 2012? Either that should have been spent on transaction or remained on the balance sheet. You have adjusted that in balance sheet but not spent it on transaction fees or pass it through cash flow statement !
@benjaminpowell5376
2 жыл бұрын
Loved the walkthrough, can we download this anywhere? thanks
@financeinterviewcoach-josh5963
Жыл бұрын
Thanks so much! I don't offer the Excel files, as they are proprietary files that I have spent countless hours developing and are part of my paid interview prep services, but feel free to check out my links for more free interview prep and financial modeling tips: linktr.ee/financeinterviewcoach
@krishnasinghalCFA
4 күн бұрын
Can I get this final template, Please?
@nicolashassoun1731
7 ай бұрын
Great video, super helpful, I just have a question regarding the CFI at the end, why don't you include the revolver commitment fee to the Borrowing / (repayment) of Revolver line in the CFI?
@sambreakwell884
4 ай бұрын
Should the $25m that you took out of the existing cash balance, to get to the minimum cash balance, not be included in the sources?
@TokyoTaisu
Жыл бұрын
Thanks - I put in a late nighter but of course my balance sheet doesn't add up. The gap is widening after y1. Any tips how to debug?
@financeinterviewcoach-josh5963
Жыл бұрын
I would recommend going through each line of the cash flow statement one by one and matching it with changes in the balance sheet, as everything in the cash flow statement should be found somewhere in the balance sheet as well. Make sure to check your sum formulas as well!
@AdanSheikh-uq1tg
3 ай бұрын
Why are financing fees considered Non-current assets instead of Non-Current Liabilities?
@desijiga2002
Жыл бұрын
where is the excel version of this file? It would be good to play around and get a feel for the actual file. thanks much.
@jd5787
Жыл бұрын
Pretty cool. Got to make an appointment with myself to finish this video this week. Quick question: would you know good resources on value creation plan / operational value/growth plan by any chance please? We need to support the forecasts with an operational plan once we acquire a company (unlike you are Elon Musk, have access to a cool 44B in cash and loan and can "experiment" with the product while antagonizing 100% of your workforce 😂). Thanks!
@filipeiller986
4 ай бұрын
What is the short cut to copy paste cell references that he uses frequently?
@Rock321333
Жыл бұрын
Thanks so much for the video - really really helpful. One question - at 1:42:25, when you paste your total interest expense, your numbers change from the originals (ending year at 157) to new numbers (ending year at 188), I know it's an iterative calculation but when I do the same, my numbers still change but they're different. Mine go 181, 179, 180, 181, 180... Not sure what I've done wrong along the way but any ideas?
@davidxieus
Жыл бұрын
Have you ever figured it out? I'm getting 181, 180, 182, 178, 173....
@davidxieus
Жыл бұрын
This is an amazing video. Quick question - don't you also need to depreciate the existing and incremental capex as well as the incremental PP&E from the transaction in the D&A schedule? Thank you!
@financeinterviewcoach-josh5963
Жыл бұрын
Thanks! The capex is already being automatically being depreciated since depreciation is driven as a % of the opening PP&E balance which capex increases every year. But the incremental PP&E from the write-up should also be depreciated, that's an oversight in this video.
@user-sd7ho9dp2y
7 ай бұрын
@@financeinterviewcoach-josh5963 Hi thank you so much for this walk through it was hugely insightful. Might be a beginner question but might as well ask as others may have the same question. In timestamp "1:28:41" you pay the manda term loan amortisation in the term loan schedule and include the same amortisation in the RCF schedule. Understood that it must be a mandatory payment upfront otherwise tap into default but then why do we need to pay them off twice? As its included in both RCF schedule and Term Loan Schedule. Thanks! :)
@mdkhaledhasan8059
Жыл бұрын
*Multiplies revenue by 20% to find receivables* "I dont know how to explain this, maths is honestly one of the hardest" 01:02:00
@godismyway7305
Жыл бұрын
Hi Josh, Just subscribed. Can you do a three-statement financial modeling for a real life company from yahoo finance your future videos? I feel like it is the hardest one compared to doing DCF and LBO. Thank you.
@davidmartins5320
Жыл бұрын
No it’s not….if you want I’d put you through
@Julia-sz1xn
23 күн бұрын
Can you provide the template?
@Justmyopinion_
11 ай бұрын
Thanks a lot for this great video! Quick q: At 1:27:48, should the discretionary term loan repayment be min(cash flow available for term loan, opening term loan - mandatory amortization) as we've already accounted for that amortization in CF available for revolver? Also, no need for the max as the value would always be >=0 here?
@thomasjp95
9 ай бұрын
I have the same doubt. I think the max function is just standard practice
@user-sd7ho9dp2y
7 ай бұрын
@@thomasjp95 Hey might be a beginner question but might as well ask as others may have the same question. In timestamp "1:28:41" he pays the manda term loan amortisation in the term loan schedule and also included the same amortisation in the RCF schedule. Understood that it must be a mandatory payment upfront otherwise tap into default but then why do we need to pay them off twice? As its included in both RCF schedule and Term Loan Schedule. Thanks! :)
@annajones6866
Жыл бұрын
What's the shortcut to duplicate an excel file, ALT W N? Tried that but didn't work
@financeinterviewcoach-josh5963
Жыл бұрын
Yes. make sure to hold alt down, only works on PC
@annajones6866
Жыл бұрын
@@financeinterviewcoach-josh5963 Fab thanks!
@SBMRadzwa
Жыл бұрын
Hi Josh, @ 1:22:15 When doing the Debt schedule, your income statement numbers change, is there something I missed?
@financeinterviewcoach-josh5963
10 ай бұрын
LBO models are circular: debt drives interest expense which drives free cash flow which drives debt paydown which drives...you guessed it, interest expense. So before you finish the debt schedule properly, Excel is constantly recalculating as you make changes.
@philipbunford6947
8 ай бұрын
Is there a way to download the material used here?
@zohabashir2797
Жыл бұрын
Where can I find the full question and solution excel?
@grynda123
8 ай бұрын
Guys why entry and ex8t multiple the same?
@timrose3460
9 ай бұрын
Where can I get the final Spread sheet?
@martyf3279
Жыл бұрын
I'm getting issues with circular references in the Mezz section of my debt schedule. How are you not getting errors on that end? the Ending balance is based off the sum of Opening Balance and PIK accretion which is based on the PIK interest expense, calculated on the average of the ending and opening balance... any ideas here?
@vaishalijain8902
Жыл бұрын
I am facing the same issue
@vaishalijain8902
Жыл бұрын
Did you find the way around it?
@martyf3279
Жыл бұрын
@@vaishalijain8902 You need to enable iterative calculation via Excel Options > Formulas > Enable Iterative Calculation
@alexanderkent2597
11 ай бұрын
Pretty good, except Gross Profit - SG&A = operating profit (EBIT)… he subtracts EBITDA from Gross Profit to get SG&A, which is incorrect.
@financeinterviewcoach-josh5963
10 ай бұрын
Thanks for the comment. SG&A was not provided in this case. So you have to backsolve for SG&A because you are given EBITDA. All expenses are negative in this model (as is best practice) so actually this is the correct way to arrive at SG&A in this case.
@AshleyShackleford-u1i
16 сағат бұрын
Thomas Eric Hernandez Margaret Perez Angela
@martinsafarian4404
23 күн бұрын
You forgot to substract cash in purchase price
@nicolasguerreroruiz7652
Жыл бұрын
why dont you subtract net debt from EV? you have 50m in cash at the beginning..
@nicolasguerreroruiz7652
Жыл бұрын
you subtracted gross debt
@financeinterviewcoach-josh5963
Жыл бұрын
The excess cash is already reflected in the sources (cash from balance sheet) and uses (minimum cash balance)
@jci95
Жыл бұрын
Hi Josh, quick question. How do you calculate the cash from exercised options? Does it link to the equity value of the management options?
@financeinterviewcoach-josh5963
Жыл бұрын
Yes, it's just the original equity value x option %.
@samuel.andermatt
4 ай бұрын
Why is the revolver (lowest interest) paid off first?
@yunjiebao6367
2 ай бұрын
because it has the highest seniority
@natashasajnani4352
3 ай бұрын
Could you please share the excel file?
@user-yk6dt6td7z
Жыл бұрын
Great video! Is there a reason you don’t depreciate the scheduled CAPEX?
@financeinterviewcoach-josh5963
Жыл бұрын
Thanks! The capex is already being automatically being depreciated since depreciation is driven as a % of the opening PP&E balance which capex increases every year.
@TheKangoeroe
Жыл бұрын
How would you deal with the deferred tax liability? Do you get higher D&A in the P&L?
@financeinterviewcoach-josh5963
Жыл бұрын
Yes, you amortize it over the lifetime of the incremental PP&E
@maximopara6814
Жыл бұрын
Where can someone learn about this?
@scottm8212
9 ай бұрын
Wow
@DolaerAhommed
6 күн бұрын
Young Daniel Lee Brian Garcia William
@nothingiseverperfect
9 ай бұрын
We went from Hunter gather society to this
@AgnesEsther-n5r
4 күн бұрын
Young Daniel Rodriguez Elizabeth Thompson Timothy
@adnansorker-z2z
2 күн бұрын
Walker Steven Lewis Betty Smith Patricia
@haykgalstyan9116
Жыл бұрын
would not your EV include cash, so you have to exclude to get to equity value.
@financeinterviewcoach-josh5963
Жыл бұрын
The excess cash is already reflected in the sources (cash from balance sheet) and uses (minimum cash balance)
@TabasumMahajabin
17 сағат бұрын
Thompson Betty White John Hernandez Brenda
@JoshOlawale
Жыл бұрын
Unused fees and commitment fees are different no? 1:36:57
@tw430
Жыл бұрын
You need to pay commitment fees on unused balances at a lower interest rate
@JoshOlawale
Жыл бұрын
Got it; just different naming convention. I’m used to referring to upfront fees as commitment fees and unused fees as standby… but speaking with many US bankers who call unused fees, commitment fees. Good to know
@MarjorieAdams-c4u
5 күн бұрын
Hernandez Richard Lewis Susan Young Angela
@AshleyShackleford-u1i
30 минут бұрын
Lewis Larry Clark Donna Anderson Brenda
@timpoos4635
9 ай бұрын
Looks pretty boring
@AliRethrbuck
9 ай бұрын
Go work in a mine then.
@ezekielchristiannnn
9 ай бұрын
Yea that's our job, is it boring? No if you like but to most people? Yes it is
@Sebastian-hg3xc
9 ай бұрын
@@AliRethrbuck working in a mine actually does something useful and so do lots of other jobs out there that don't involve physical labor. this stuff here on the other hand is just a boring waste of time. you're not contributing anything useful to society.
@lcandothat
8 ай бұрын
@@Sebastian-hg3xc so you think if all of the finance industry stopped working nothing would happen?
@JohnFare
8 ай бұрын
@@AliRethrbuck just because someone doesn’t want to work 80hrs a week in a office with this stuff doesn’t mean there gonna work in a mine 😭😭😭
@oSJmee
9 ай бұрын
Just curious, does knowing this has a future? I guess a KI could do this task in seconds.
@NelsonBarney-s1x
2 күн бұрын
Hall Robert Martin Michelle Thompson Donald
@닝닝닝
7 ай бұрын
As I get closer to the end, it gets messy....
@lugas2267
8 ай бұрын
Omg voice twin of Sam Sulek
@AlfredPrimo-p3d
Күн бұрын
Lopez Nancy Jones Richard Moore Laura
@TrumanKim-m2w
4 күн бұрын
Gonzalez Frank Walker Anna Gonzalez Brian
@javedalam6115
Жыл бұрын
Hii
@spak4319
11 ай бұрын
15:10
@닝닝닝
7 ай бұрын
59:34 alt e s l
@Sebastian-hg3xc
9 ай бұрын
what fantasy world full of nonsense did i just enter.
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