A Simple Model exists to make the skill set required to build financial models more accessible. The intention is to create simple material and facilitate the learning process with instructional video. It is not, however, always easy: financial models include formulas and require some understanding of basic finance and accounting. If you are new to this you may struggle a bit initially. But with practice you will learn how to build financial models. It may help you write a brilliant business plan or land a job (if you want one).
If not, worst case scenario, you’ll just be a little nerdier.
I launched ASimpleModel.com to demonstrate that while some models can be complex, most are simple. They all have varying degrees of detail, but the mechanics are generally the same.
I also believe financial modeling is one of the best ways to truly understand accounting and finance topics that might otherwise sound abstract. The first time I built a fully integrated financial statement model from scratch was a true light-bulb moment for me. In that process everything I had read about accounting and financial statements finally clicked.
My objective with this website is to share and condense that learning experience so that others can work up the learning curve expeditiously to focus on what truly matters.
That’s me in the image above (on the right). My name is Peter Lynch, and I am currently employed at Hilltop Opportunity Partners (“HOP”), a merchant banking business launched by Dallas-based Hilltop Holdings Inc. (NYSE: HTH). Before joining HOP, I spent 8 years working for Argenta Partners, a private equity firm focused on control-only equity investments. From 1989 through 2016 Argenta achieved a cumulative annual internal rate of return for all invested limited partner funds of 27% net of GP carried interest and fees. Prior to that, I worked with the M&A team at Rabobank International in New York City, and with JPMorgan in Buenos Aires, Argentina and in Santiago, Chile. I currently serve as chairman of Fleetwood Transportation Services and as a director of NovaLink, Inc., OTTR Chronic Care Solutions and Stephen Gould Corporation. To prepare myself for the professional world I attended the University of Pennsylvania. (LinkedIn Profile)
I have been working in private equity for approximately 9 years now. My favorite part of the job is interacting with successful founder entrepreneurs looking to take their business to the next level. We generally look at 300+ opportunities for every investment we make, and I believe it is this dialogue that has helped me understand what is confusing to entrepreneurs about accounting and finance. The content on this website has benefited enormously from these conversations.
While I am serious about the practice of investing, I generally do not take myself too seriously. You will find nerdy attempts at humor littered throughout these pages (emphasis on "attempts"). Please feel free to reach out through the contact page with any questions (or bad jokes...).
“Everything should be made as simple as possible, but not simpler.”
Albert Einstein, Nerd