Insights

Why Not Buy Robinhood Stock?

  • Peter Lynch

Why not buy Robinhood stock? Why not buy any stock when the company is trading close to the value of the cash it has on the balance sheet?

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Building a Balance Sheet for a Startup

  • Peter Lynch

Exercises can help provide context for abstract concepts. In this post and the associated YouTube Short we are going to explore the balance sheet by walking through a simple example for a startup. More precisely, we will be launching a banana stand business (because “there’s always money in the banana stand”).

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Value Drivers in an LBO Model

  • Peter Lynch

In this post we will use a simple example to highlight the primary value drivers in an LBO model.

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Carried Interest for a $500M Private Equity Fund

  • Peter Lynch

How much carried interest would private equity fund managers earn on a $500 million dollar fund that triples in value? In this post we will walk through a basic distribution waterfall to explain how this calculation works.

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Working Capital Adjustment Process

  • Peter Lynch

The working capital adjustment requires that the buyer and seller exchange working capital estimates and calculations. In financial models everything is automatic, but in the real world a structured process must be in place. In this article we will explore this sequence.

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