Insights
Why Not Buy Robinhood Stock?
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?
Building a Balance Sheet for a Startup
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”).
Value Drivers in an LBO Model
In this post we will use a simple example to highlight the primary value drivers in an LBO model.
Carried Interest for a $500M Private Equity Fund
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.
Working Capital Adjustment Process
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.