Insights

Fundless Sponsor Economics

  • Peter Lynch

Before discussing the economics, I thought a definition of a fundless sponsor would be helpful. An article in The Economist provided an excellent example: “The typical search-fund principals are MBA graduates from an elite American university, who raise $400,000 or so of “walking around money” from investors, who purchase a stake in the fund for about $40,000 a share. The fund searches for a high-growth, high-margin target, valued at $5m-20m. The fledgling businessmen then hold a second round of acquisition financing, as well as raising debt. Their tenure as bosses lasts until they sell out.” [1]

Continue Reading

Excel Trick: SumProduct & Double Minus ("--")

  • Peter Lynch

I recently received an email asking if I was aware of a formula that could validate the information in two columns, and return the summed value for all matches. This is easier to grasp in context, which makes the video helpful. I was, admittedly, slightly long-winded in explaining the purpose of the formula. To avoid this lengthy explanation, skip to the two-minute mark once you understand the objective.

Continue Reading

The IRR Formula Explained

  • Peter Lynch

The IRR formula made (very) simple. This post will show you the math behind an IRR calculation to make the concept easy to grasp.

Continue Reading

Three-Statement Financial Model for Amazon.com, Inc.

  • Peter Lynch

This three-statement model for Amazon.com, Inc. will be used in the next installment of the Integrating Financial Statements series. While I have not typically posted a work in progress, I believe this will be helpful to ASM visitors in the interim.

Continue Reading

Private Equity / Investment Banking: Getting the Job

  • Peter Lynch

I work as an investment professional at a private equity firm in Dallas, TX, and since 2013 I have also been building a financial modeling and private equity training resource with the intention of making instruction simple and content accessible. I wrote about the experience of maintaining both in an article that was later picked up by Forbes (link), which sheds some light on my experience maintaining a “side hustle.”

Continue Reading