Insights

We are making baby steps towards profitability at ASimpleModel.com! This month revenue covered all fixed expenses excluding web design / development efforts and my time. A small victory, but it was exciting nonetheless. The most recent installment walks through these updates, and demonstrates how quickly you can update a business dashboard once you have one built. For those that are interested I have included an image of the business dashboard at the bottom of this post.

Distribution waterfalls define the economic relationship between the equity participants involved in an investment. In private equity transactions this generally focuses on the relationship between the general partner (“GP”) and limited partners (“LP”).

Investing is unusual in that the greatest enjoy writing about their profession. I would skip the textbooks and read the investor letters, memos and books that these individuals write.

Context: I recently received a message from a subscriber asking if I could explain the CAGR formula. He said that he had used it in one of his models, and when he looked it up online there was no explanation for the math. His response: “Welp, if you say so formula…” So I thought I would take a moment to explain the formula.

We are in the process of developing the next collection of videos and models for the Leveraged Buyout Model series. This new collection will cover the following topics: