If you are interested in investing, you should know about serial entrepreneur and investor Brad Jacobs. His recently released book, How to Make a Few Billion Dollars, is a master class in acquisitions, roll ups, and “big, hairy deals,” the kind that sometimes create a ten-figure net worth.
Want to buy a business? Learn the pros and cons of funded and unfunded private equity searches for entrepreneurs interested in acquisitions.
The world of private equity is notorious for grinding, 100-hour workweeks, particularly in the case of younger professionals. But like any job, there are always stretches where your firm’s deal flow (and urgent, need-it-done-yesterday work) slows down. That’s when private equity professionals may occasionally find themselves asking: how do I fill the hours between 9am and 6pm?
The three financial statements are the income statement, the balance sheet, and the cash flow statement. These three primary statements are intricately linked to each other, and understanding the relationships between them is critical to building a three-statement model, which is the foundation of most financial analysis.
Can you explain how the financial statements work together in under 60 seconds? This has been one of my favorite interview questions since I started working in private equity (except I don’t normally apply a time limit, that was included for internet attention spans). I have asked it of analysts and CFOs alike. The confidence and detail with which candidates answer it exposes a lot about their knowledge and how they think.