BIWS Premium Financial Modeling Course: Course Outline

BIWS Premium Financial Modeling Course: Course Outline If you’re reading this document, you’re probably considering signing up for one of the Breaking Into Wall Street Financial Modeling Training Courses. If that’s you, then this Special Report explains…   

Everything you get in the course, in detail. How this training is different from anything else on the market. How you can save money by signing up for the lowest possible enrollment fee.

Breaking Into Wall Street Has Worked For Others. It Will Work For You Too. If you’ve already signed up for our free video tutorials, you will have already seen how Breaking Into Wall Street can benefit just about anyone interested in moving into finance and anyone who wants to advance within the industry. Here are just a handful of the hundreds of customer testimonials we have received about our Courses:

“Great Value For Money And I’ve Recommended BIWS To A Lot For Friends”

www.BreakingIntoWallStreet.com

“From Academic Probation… To A Full Time Analyst Offer”


“I Received 12 Summer Internship Offers Based Upon My BIWS-Centric Preparation”

“BIWS Is The Best Value Proposition To Learn Financial Modeling”


“It’s An Easy System To Use And Has Given Me Confidence In Interviews.”

“I Have Recommended This Course To Pretty Much Everyone That Has Ever Asked Me About IB/PE or Modeling Specifically, and Have Found It Is Not Only Useful to Undergrads and Business School Students, But Also People That Are Quite Experienced in Modeling.”

You’ll find many, many more comments from happy customers right here: http://breakingintowallstreet.com/biws/testimonials/



Course Highlights The topics in Breaking Into Wall Street are designed to prepare you for what you’ll need to know when: 1. You’re interviewing with banks and other finance firms; and 2. Once you start working at a bank (or private equity firm, or hedge fund, or in any other finance/business role). Everyone is coming in with a different level of technical knowledge, and that’s why we’ve made it easy to tackle the lessons in any order you want. If you’re in a time crunch and needed answers yesterday, you can skip to whatever you need help with – but if you want to go through everything from top to bottom, you can do that too. 

There are 278 videos with accompanying Excel files for everything. That amounts to 79 hours of video altogether, which may seem like a lot. But don’t worry: everything is broken into bitesized chunks so you can digest it easily.

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All the content is downloadable to your preferred device (works with QuickTime and most other media players and on desktops, laptops, tablets, iPads, iPhones, and iPods).

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NEW: You also get full transcripts of all the videos. There are over 900,000 words in all, and all the transcripts are also downloadable. Use the transcripts to suit your preferred learning style or to quickly revise key concepts without having to find the exact location in the videos.

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Easily keep track of your progress: As you move through the lessons, you can check off what you’ve completed and what’s still on your “to-do” list.

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Fast answers to all your questions: Our expert support team is standing by to answer any questions you have about any of the content, 365 days a year.

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NEW: Quizzes and Certifications. After you have completed each course, you will be eligible to take our challenging Certification Quiz. Once you pass the Quiz, you’ll be issued a Certificate that you can add to your resume / CV and refer to in interviews.

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Included Lifetime Access: You also get lifetime access, so you can come back to the course whenever you need it – whether that’s in 1 month, 1 year, or 10 years.

One final note: I’ve listed everything below – every single module and lesson in the full package. However, you don’t have to sign up for everything if you don’t need it. You have 3 signup options, which I’ll outline at the end of this document.     

Excellence With Excel – Outline Financial Modeling Fundamentals – Outline Advanced Financial Modeling – Outline Bonus Case Studies – Outline Signup Options & Enrollment Fee


To be clear, the following document outlines everything that’s in the BIWS Premium package – the Excellence with Excel, Financial Modeling Fundamentals, and Advanced Financial Modeling courses. However, if you only sign up for one of those courses then you only get what’s in that course. So if you sign up for only the Advanced Financial Modeling course, you will NOT get what’s included in the Excellence with Excel or Financial Modeling Fundamentals courses. To get everything outlined here, you must sign up for the BIWS Premium package (this package also offers you, by far, the best value). You receive the Bonus Case Studies if you sign up for the Excel & Fundamentals course, the Advanced Modeling course, OR the BIWS Premium package. You do NOT receive the Bonus Case Studies if you sign up for the Excellence with Excel course separately, but other than that ANY sign-up option available for these courses will give you access to the Bonus Case Studies.

Excellence With Excel 2.0 In this course, you’ll master Microsoft Excel (both the PC and Mac versions are covered) via two extended case study exercises: • •

Case Study #1: Wal-Mart Operating Model and Valuation Case Study #2: Customer and Sales Rep Due Diligence Data

In both case studies, you’ll assume the role of an investment banker representing or analyzing the company in question, and you’ll use your analysis to answer key questions about the companies and address concerns from potential investors. These case studies are equally applicable if you’re learning Excel for other roles, such as equity research, corporate finance, corporate development, private equity, hedge funds, or anything else that involves financial statement analysis, valuation, and data analysis. The main difference is that you’ll be analyzing the data and asking the questions in those roles, instead of using the data to pitch your client effectively.

Case Study Objectives: •

Wal-Mart Valuation – Create a correctly formatted, fully functional 3-statement model and valuation of Wal-Mart, with all the errors fixed and all the standard features you’d expect to see in such a model. Also add key features such as sensitivity tables to determine the company’s valuation under different assumptions.


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Customer and Sales Rep Due Diligence File – Fix the formatting of the customer and sales rep due diligence data, add lookup and database functionality, create graphs and charts based on the data, and use more advanced features of Excel to speed up the formatting and analysis.

Files & Resources: • • • • • • •

PC Excel 2007 / 2010 / 2013+ Shortcuts – Quick Reference Guide PC Excel 2003 Shortcuts – Quick Reference Guide Mac Excel 2008 / 2011 Shortcuts – Quick Reference Guide Excel Formatting – Best Practices – Quick Reference Guide Excel Functions and Formulas – Quick Reference Guide Excel Custom Number Formats – Quick Reference Guide Excel Charts & Graphs – Quick Reference Guide

Module 1: Overview & Excel Setup In this module, you’ll watch the lessons and make sure that you’ve set up Excel correctly on your own computer, so we do not dive into the case study in much detail yet. If you already know Excel quite well and you’re taking this course to refresh your memory of certain topics, skip to the last lesson and the quick start guide so you can decide what to focus on. Case Study Objectives: Make sure that all your Excel settings (calculations, plugins, display, etc.) are correct before you jump in and start modifying the case study files. 1.01 Course Overview (19:28) In this lesson, you’ll get an overview of the Excellence with Excel 2.0 course and you’ll learn the key topics we’re going to cover, how you should approach the material, and the differences between using the PC vs. Mac versions of Excel. 1.02 How to Set Up Excel Properly (22:18) You’ll learn how to set up Excel properly in this lesson, regardless of whether you’re using PC or Mac Excel, and you’ll learn how to change key settings in the Options menu to ensure that Excel works correctly throughout this course. 1.03 Tour of Excel Interface (13:49) You’ll get a tour of the Excel ribbon menu interface and program window in this lesson, and you’ll learn how to enable and disable key items for added space in your spreadsheets. 1.04 Quick Start Guide to the Course (16:07)


In this lesson, you’ll learn the proper lessons to focus on in this course depending on your experience level with Excel, how much time you have, and what you are preparing for.

Module 2: Navigation & Data Manipulation In this module, you’ll skip between the two case study files and complete portions of both of them to master different features of Excel related to navigation and data manipulation. You’ll learn how to insert, edit, and delete rows, columns, cells, worksheets, and workbooks, and how to enter formulas, text, and numbers properly, as well as how to use absolute and relative references and name and jump to cells. Case Study Objectives: •

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Wal-Mart Valuation – Add rows for several important supplemental calculations and metrics, such as the gross profit margin, and use absolute vs. relative references effectively in these formulas. Also, determine which cells to name and which cells to leave as is, and reorder worksheets so that they follow a more logical order. Customer and Sales Rep Due Diligence File – Insert, edit, and delete key rows and columns in the file and enter information for missing text, numbers, and formulas. Make sure that all worksheets are visible, and delete, color, and name worksheets as appropriate.

2.01 Shortcuts You Already Know (14:14) You’ll learn the fundamental shortcuts required to use the PC and Mac versions of Excel in this lesson, including how to open, save, create, and print files, and how to change key options and settings within the program. 2.02 Basic Navigation (13:18) In this lesson, you’ll learn the key Excel shortcuts required for basic data navigation, including how to move around within Excel and how to scroll up and down through spreadsheets and select different areas. 2.03 Inserting, Editing & Deleting Rows and Columns (17:10) You’ll learn different methods and shortcuts for adding, editing, and deleting rows, columns, and cells in this lesson, across different versions of Excel for both the PC and Mac. 2.04 Editing and Deleting Cells (14:12) In this video, you’ll learn the key shortcut keys required to edit cells, enter text, and move in different directions after entering the text in cells, across both the PC and Mac versions of Excel. 2.05 Entering Formulas, Text, and Numbers (21:48)


You’ll learn the most important shortcuts for evaluating formulas, copying and pasting special items (formulas, formats, values), and changing the indentation of cells in this lesson. 2.06 Refreshing and Calculating Results (6:52) In this lesson, you’ll learn how to set the “Calculations” options within Excel correctly and how to refresh and update spreadsheets to see the results of formulas and functions. 2.07 References and Anchoring Cells (16:29) You’ll learn the difference between absolute and relative references in this lesson, as well as how to “anchor” the row and column portion of cells (and how the shortcuts differ on the PC vs. the Mac). 2.08 Naming and Jumping to Cells (23:45) You’ll learn how to name key cells in your spreadsheets and jump back to them whenever you need, the best use cases for this functionality, and also how to highlight all constants and formulas in your spreadsheet for color-coding purposes. 2.09 Copying, Deleting & Moving Workbooks & Worksheets (17:15) You’ll learn how to copy, delete, and move both workbooks and worksheets in this lesson, including the most important shortcuts across different versions of Excel. 2.10 Hiding, Naming & Coloring Worksheets (14:31) In this lesson, you’ll learn how to hide, name, and color worksheets, the key points to be aware of, and why you have to be very careful when doing any of this in Excel.

Module 3: Formatting, Importing & Sorting Data In this module, you’ll fix much of what’s incorrect in both case study files by applying proper formatting and changing around the background colors, font colors, fonts, font sizes, alignment, and more. You’ll also learn key formatting mistakes to avoid, and how to perform common tasks such as colorcoding your financial models and “cleaning up” data by using text, date, and time functions in Excel. Case Study Objectives: •

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Wal-Mart Valuation – Add the appropriate fills and borders to the model and fix the numerical formatting; color-code the model for constants, formulas, and links to other worksheets, and use date and time formatting to ensure that the dates are shown correctly. Use custom number formats for valuation multiples and balance checks on the balance sheet. Customer and Sales Rep Due Diligence File – Make the worksheets easier to read and fix all the date and time references. Import additional external data, clean up text to fix incorrect cases and combine the contents of different cells, and then sort and filter the data. Finally, apply


conditional formatting to the data set and use data tables (a new feature introduced in Excel 2007 and all versions after that) to automate the formatting process. 3.01 Formatting Overview (18:31) You’ll learn how to use the Alt + H menu as well as the Ctrl + 1 dialog in this lesson, and how to use features such as the Format Painter and Paste Special. 3.02 Fills, Fonts, Borders, and Alignment (27:48) You’ll learn how to change font settings, fills, borders, and alignment in this lesson and properly format both customer due diligence data and our financial model for Wal-Mart. 3.03 Built-In Formats (16:59) You’ll learn how to apply built-in number formats in Excel to further enhance the formatting for our financial model and valuation of Wal-Mart in this lesson. 3.04 How to Color Code Financial Models (12:14) You’ll learn how to color code financial models blue, black, and green to represent formulas, constants, and links to other worksheets in this lesson – and you’ll apply these techniques to the Wal-Mart financial model. 3.05 Dates and Times (25:08) In this lesson, you’ll learn how to properly format dates in Excel, how to manipulate them to form new dates, and also how to subtract dates and calculate the # of days between different dates. You’ll also get firsthand practice applying all of this to create and fix dates in both the customer due diligence and WalMart model files. 3.06 Custom Number Formats (32:25) You’ll learn how to use Excel’s custom number formats feature in this lesson to create formats for valuation multiples in the Wal-Mart file, as well as additional formats for Balance Sheet checks and more precise numbers in several parts of the model. 3.07 Importing and Exporting Data (16:13) You’ll learn how to import and export data from and into Excel in this lesson, and you’ll see how we might add missing customer due diligence data from a text file – plus, why it can be dangerous to maintain these data connections to external files. 3.08 Text Manipulation (16:29) You’ll learn how to use text manipulation functions to fix customer data, such as the address fields, in this lesson, and you’ll understand which functions are highly useful vs. which ones are “optional.”


3.09 Cleaning Up Data (15:35) You’ll learn how to “clean up” data in this lesson by using the TRIM, PROPER, and CLEAN functions to remove extra spaces, non-printable characters, and fix the capitalization of words – and you’ll apply it directly to the customer due diligence file we’ve been working with. 3.10 Sorting and Filtering Data (21:50) You’ll learn how to sort and filter data in this lesson, and you’ll greatly enhance the customer due diligence file by adding in both of those functions to the top of the table and sorting the data in a more logical order. 3.11 Conditional Formatting (19:04) You’ll learn how to use conditional formatting to format customer order data based on the order size in this lesson, and you’ll understand the differences and trade-offs between custom number formats and conditional formatting. 3.12 Data Tables (18:30) You’ll learn how to set up Data Tables, a feature introduced in versions of Excel from 2007 onward, in this lesson, and how you can use data tables to simplify and automate many of the common formatting, sorting, and filtering tasks that you complete with due diligence data. 3.13 Formatting Exercise (40:41) You’ll put together everything you’ve learned in this “capstone” lesson and properly format an additional table in the customer due diligence file – and then, you’ll get to practice again with a comprehensive exercise to format a summary page of the Wal-Mart financial model and valuation and fix color coding, fonts, text, number formats, borders, and more so that senior bankers can read it more easily.

Module 4: Grouping, Hiding, Zooming & Printing This module will teach you how to group and hide rows and columns, when it’s appropriate and inappropriate to do so, and also how to freeze panes and zoom in and out in Excel – so that you can print out exactly what you want and nothing more. You’ll learn how to change the print and worksheet settings to change everything from headers and footers to grid lines and even the order that pages get printed in. Case Study Objectives: •

Wal-Mart Valuation – Group and hide rows such as the balance check, freeze panes in the correct places for easier viewing, and set the print range and other settings appropriately for an intelligible printout of the model.


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Customer and Sales Rep Due Diligence File – Group and hide the appropriate columns, freeze the top row for easier viewing, and then change the print settings to support a header, footer, and the correct print area.

4.01 Grouping & Hiding Rows and Columns (17:41) In this lesson, you’ll use the grouping and hiding features built into Excel to make it easier to scan through both the customer due diligence file and the Wal-Mart model and valuation – and you’ll learn why hiding rows and columns can be dangerous if used improperly. 4.02 Freeze Panes and Zooming (15:39) In this lesson, you’ll learn how to freeze panes in Excel to make it easier to view everything, and how to zoom in and out quickly so you can magnify certain parts of the screen. Then, you’ll get practice applying both of these to the customer due diligence file and Wal-Mart model and valuation. 4.03 Printing Overview (26:20) You’ll get a crash course on all the features and shortcuts required to print out Excel files in this lesson, from setting the print area to viewing page breaks to showing print previews to adjusting all of those and more – and you’ll get practice applying them to make both files we’re working with into printable documents. 4.04 Printing Exercise (20:31) You’ll get practice applying all the printing and formatting shortcuts we’ve learned in this lesson by correctly formatting all the remaining spreadsheets in the Wal-Mart model, adding a header and page numbers, and ensuring that everything fits onto pages properly.

Module 5: Formulas, Lookups & Calculations In this module, you’ll learn how to use Excel’s built-in arithmetic, logical, and financial functions and how to write and manipulate your own formulas for calculation and lookup purposes. In addition, you’ll learn how to validate data, set up scenarios, audit formulas and handle errors, work with circular references, and use features such as sensitivity tables, goal seek, and pivot tables to analyze the output of models under different assumptions. Case Study Objectives: •

Wal-Mart Valuation – Add several missing formulas to the file, properly link valuation data using lookup and transpose functions, and add support for multiple revenue growth scenarios in the model. Properly link the net interest income / (expense) number using circular references, and audit, explain, and error-check key formulas in the operating model and valuation.


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Customer and Sales Rep Due Diligence File – Add lookup functions and variations such as INDEX, MATCH, and database functions to the file to enhance functionality and make it easier for “normal people” to use. At the end, add in a pivot table so you can slice and dice the data and group it dynamically according to different criteria. Additional Practice Exercise – Practice lookup functions, INDEX, MATCH, and related formulas by completing a drill based on a real estate data file that lists attributes of properties in different regions and the REITs that own all of them.

5.01 Arithmetic Functions (35:07) You’ll learn the key built-in and arithmetic functions in Excel in this lesson, and you’ll get firsthand practice applying them to both the customer due diligence file and the Wal-Mart model, to fix certain calculations and add in new ones. 5.02 Financial Functions (32:55) In this lesson, we’ll take a break from the normal case study and you’ll learn all about two of the most important functions in Excel: IRR and NPV (and XIRR and XNPV), from what they mean to how to use them in financial models. We’ll also cover functions to calculate mortgage principal and interest and depreciation under different methods. 5.03 Logical Operators (17:19) You’ll learn how to write formulas using logical operators (IF, OR, AND, etc.) in this lesson and you’ll use this new functionality to add to and expand on formulas throughout the customer due diligence file (on the analysis and summary tab) and in the Wal-Mart model. 5.04 Copying, Pasting, and Moving Formulas (12:27) You’ll learn the key time-saving shortcuts for copying and pasting formulas of all types and for all purposes in this lesson – from copying formulas down and right to copying links and a mix of formulas and/or number formats. Then, we’ll apply these new shortcuts to both case study files. 5.05 Lookup Functions (30:05) You’ll learn all about VLOOKUP and HLOOKUP in this lesson, see how they’re useful and why we use them, and then significantly enhance both case study files by adding lookups in key spots of the customer due diligence file and by pulling in data for the public comps for the Wal-Mart file. 5.06 INDEX, MATCH, and INDIRECT (32:03) You’ll learn how to use the INDEX, MATCH, and INDIRECT functions (as well as ADDRESS) in this lesson to enhance the normal lookup functionality in Excel, and you’ll see how those functions improve upon VLOOKUP and HLOOKUP. We’ll add additional lookup functionality to the customer due diligence file, and then you’ll get to practice on your own with a case study where you compare the financial performance of several REITs and have to work with “messy” data to do so.


5.07 Database Functions (10:19) You’ll learn how to simplify (almost) everything that lookup and related functions can do in Excel by using database functions instead in this lesson – and you’ll rewrite everything we’ve done so far in the customer due diligence file to make it much more intuitive to look up and summarize key data for analytical purposes. 5.08 Array Functions (18:01) In this lesson, you’ll learn how to use array functions to write MAXIF and MINIF in Excel (which are not built-in functions), and then you’ll get practice applying TRANSPOSE (another array function) to a set of valuation data to assist with creating a “football field” graph in the next module. 5.09 Data Validation (16:56) You’ll learn how to use data validation to create “drop-down” selection menus in this lesson, and you’ll get practice applying it to key input cells in both the Wal-Mart and customer due diligence files; you’ll also learn about features introduced in newer versions of Excel, such as the ability to circle previously entered invalid data. 5.10 Scenarios (17:13) You’ll learn how to build in different revenue growth scenarios into the Wal-Mart model in this lesson, by using data on the company’s total square feet of retail stores and sales per square foot – and you’ll learn the trade-offs between CHOOSE, OFFSET, and Excel’s built-in scenario manager. 5.11 Circular References and Iterations (16:28) In this lesson, you’ll learn what circular references are and why they appear in some Excel models, and you’ll get practice handling them and enabling automatic, iterative calculations by adding the interest income / (expense) calculation to the Wal-Mart model and valuation. 5.12 Auditing Formulas (21:31) In this lesson, you’ll learn how to trace both immediate precedents and dependents as well as all precedents and dependents and diagnose errors in your Excel files using those commands – and then you’ll get to practice yourself by tracking down some formula calculation errors in the Wal-Mart file. 5.13 Leaving Comments (10:21) You’ll learn the best use cases for comments in Excel in this lesson, as well as how to create, edit, and delete them, and view all comments and all cells with comments. 5.14 Error-Checking Formulas (18:43) You’ll learn how to build error-checking into your formulas in this lesson, as well as the most common types of errors in Excel, what they mean, and how to detect and fix them using IFERROR and ISERROR.


5.15 Sensitivity Tables (15:16) In this lesson, you’ll learn why sensitivity tables are so important in any type of financial analysis and you’ll get practicing creating your own sensitivity tables in the Wal-Mart operating model and valuation to determine the approximate range of share prices that the company might be worth. 5.16 Goal Seek (8:56) You’ll learn how to analyze different “What If?” scenarios in this lesson by using the Goal Seek version in Excel, and you’ll get practice using it to determine the conditions that must be true for a company to be worth a certain per-share amount under different assumptions. 5.17 Pivot Tables (27:25) You’ll learn the power of pivot tables in this lesson, and you’ll create your own pivot table that lets you analyze customer data by dozens, if not hundreds, of different splits and combinations so that you can view the average order size, total dollar value of orders, number of orders, and more, by different criteria.

Module 6: Graphs and Charts You’ll learn how to create the most important graphs and charts that you use in investment banking, private equity, and related fields in this course, from simple line and column graphs to combination graphs to valuation metrics and multiples and the “football field” graph. You’ll also learn how to create price-volume graphs for stock analysis and how to create “waterfall graphs” for EBITDA bridge analysis or a Sum-of-the-Parts valuation. Case Study Objectives: •

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Wal-Mart Valuation – Create a chart showing Wal-Mart’s revenue growth and margins, its valuation metrics and multiples, the metrics and multiples of its comps, and a “football field” valuation graph that presents a summary of everything. Customer and Sales Rep Due Diligence File – Create pie charts to demonstrate the regional concentration of sales and the percentage of sales contributed by each sales rep. Also add in revenue growth and CAGR graphs for the company to chart its revenue, customer count, and average contract value over time. Additional Practice Exercise – Create an “EBITDA bridge” chart that demonstrates how a company will grow its EBITDA by 15% in the next year, in response to a due diligence request from a potential private equity acquirer. They don’t believe your client’s numbers, and have requested additional support for its EBITDA projections before they can invest.

6.01 Line and Column Graphs (22:19)


In this lesson, you’ll learn how to create line and column charts and graphs in Excel and plot a company’s revenue, revenue growth, and order data, as well as some of Wal-Mart’s key operational and financial metrics over time. 6.02 Formatting Graphs and Charts (35:37) In this lesson, we’ll teach an important and often-overlooked topic: how to format your graphs and charts properly in Excel by changing around elements like the colors, axes, data labels, tickers, chart titles, legends, and more, and you’ll get practice once again by enhancing the charts we just created for Wal-Mart and the customer due diligence file. 6.03 Combination Charts (24:25) In this lesson, you’ll learn how to create combination charts for plotting revenue and revenue growth or EBITDA margins on the same graph, using both the built-in Combo Chart Type in Excel 2013+ as well as the trick you can use with normal line and column charts to do it manually. 6.04 Pie Charts (26:47) In this lesson, you’ll learn how to create dynamic pie charts that allow the user of the spreadsheet to select the year and/or other criteria and have the pie chart (showing the breakout of sales by sales rep or region) change on the fly – and you’ll apply it to the analysis of our customer order due diligence file. 6.05 Valuation Multiples (36:20) In this lesson, you’ll learn how to create graphs that demonstrate Wal-Mart’s key financial and operating metrics vs. its valuation multiples in forward, projected years, and you’ll learn how to automatically highlight the company that you are analyzing in graphs for comparable public companies. 6.06 Creating the Football Field Valuation Graph (24:27) In this lesson, you’ll learn how to create the infamous “football field” valuation graph that shows a company’s implied per share value across different methodologies and assumptions, and the 25th quartile to 75th quartile for each one. To complete this graph, we’ll combine the graphing tools we just learned with the LOOKUP and TRANPOSE functions from the previous module. 6.07 Price-Volume Graphs (24:57) In this lesson, you will get practice creating price-volume charts for Wal-Mart and one of its peer companies. The actual chart creation is fairly simple, so we focus on how to adjust the formatting and fix axis and labeling problems with the built-in graph – which is the trickiest part of the entire process. 6.08 Multi-Year Waterfall Bridge Charts (30:15) In this lesson, we’ll take a break from the two normal case studies and move through a case study where you assume the role of a banker convincing a PE firm that your client can achieve its revenue


projections. You’ll do that here by creating a multi-year waterfall chart for a subscription services company that demonstrates visually how a company grows via new territories, additional marketing, and even how lost subscribers impact its revenue. 6.09 Waterfall Charts with Connectors (26:24) We’ll continue with this case study in this lesson, and extend the waterfall chart by building “connector” lines in between each different “step” of the graph, so that you can see more easily the progression over time and how one segment of revenue or EBITDA builds on the previous ones to contribute to a company’s total in the next year.

Module 7: Intro to VBA, Macros, Form Controls, Custom Shortcuts, and UserDefined Functions In this module, you’ll get an introduction to the more advanced and programming-like features of Excel, such as macros, VBA (Visual Basic for Applications), user-defined functions, form and ActiveX controls, interactive charts, and custom keyboard shortcuts. You’ll learn how to use these features to save time and perform common operations, such as colorcoding your financial models, more efficiently. If you want to learn more, you’ll learn about recommended resources for learning these features in greater depth. Case Study Objectives: • •

Wal-Mart Valuation – Add and modify a macro for formatting and color-coding the financial model and valuation. Customer and Sales Rep Due Diligence File – Use VBA to format “messy” imported phone number data and turn it into a usable format. Create a user-defined function to better summarize data, create a dynamic chart that allows the user to view data in multiple different formats, and create custom keyboard shortcuts for common data-related functions.

7.01 How to Record and Edit a Macro (38:06) In this lesson, you’ll learn to record macros for common data manipulation and formatting tasks, you’ll understand the relationship between VBA and macros, and you’ll use the VBA Editor to modify your macro in code form so that it works properly. You’ll practice yourself by recording a macro that fixes the fonts in the “Summary” tab of the Wal-Mart model. 7.02 Introduction to VBA, Conditions, and Loops (51:32) You will use loops and conditionals in VBA in this lesson to build and modify your own macro for accepting customer order data, and then you’ll use what you learned here to fix a “broken” macro for color-coding a financial model and turn it into something that works properly by using the VBA Editor. 7.03 Using VBA to Create User-Defined Functions (22:40)


In this lesson, you’ll learn how to extend VBA by creating User-Defined Functions (UDFs) that allow you to check for additional conditions and perform additional error-checking and create brand-new built-in functions in Excel. You’ll get practice creating one UDF that calculates Net Income and one that calculates the previous and next years for use in models. 7.04 Fixing Messy Formatting with VBA (28:24) In this lesson, you’ll learn another use case for VBA and user-defined functions: fixing messy formatting of text fields such as phone numbers. You’ll get practice writing VBA code as part of a user-defined function that will properly format a series of inconsistently-formatted telephone numbers and detect which country each one corresponds to. 7.05 Dynamic Charts with Form Controls (44:28) In this lesson, you’ll turn existing charts and graphs in the Wal-Mart and customer due diligence files into dynamic objects with scroll bars and check boxes that allow you to see only a portion of the graph, or only certain data series on the graph – and you’ll learn how to link form controls to formulas, functions, and graphs within Excel. 7.06 Create Custom Keyboard Shortcuts (9:12) In this final lesson in the Excel course, you’ll enhance the power of Excel once again by creating your own custom shortcuts for the functions that you use the most often, and then make them easily accessible with the Alt + Number Key combination. We’ll also do a recap of the course and summarize the lessons.


Financial Modeling Fundamentals 

Financial Modeling Fundamentals teaches you financial modeling from the ground up and ensures that you ace your investment banking and private equity interviews.

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The entire course is based on a case study of Apple and Research in Motion, using real SEC filings and equity research from investment banks such as Credit Suisse.

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You’ll learn everything from Accounting 101 and Valuation all the way up through Merger Models and PE interview-ready LBO Models.

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You’ll also get to practice yourself with the exercises included within each course – and if you need to brush up on your Excel skills, videos are captioned with the key shortcuts.

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NEW: After completing the course, you can take a challenging Quiz to test your financial modeling knowledge. When you achieve a mark of 90% of higher you’ll be awarded a Certificate to include in your resume / CV and discuss in interviews.

Module 1: Accounting Fundamentals In this course, we'll cover accounting fundamentals - including the 3 major financial statements, how to link them together, and common interview questions on accounting. We'll start out by looking at Apple's financial statements and building a 3-statement model from the ground up, going through the Income Statement, Balance Sheet, and Cash Flow Statement, and then linking them together. After we've created the basic model, we'll go through a set of common interview questions on accounting, including how changes to different line items affect the statements.

Files & Resources: • •

Accounting & Linking the Statements – Quick Reference Guide Accounting Interview Questions – Quick Reference Guide

1.1 Income Statement (Video Length: 22:18) In this lesson, you’ll learn about the most important items on a company’s Income Statement, and you’ll practice building your own by using Apple’s 10-K filing as inspiration. 1.2 Balance Sheet: Assets (Video Length: 19:45) In this lesson, you’ll learn the purpose of a company’s Balance Sheet and you’ll see examples for both Apple and your own personal “balance sheet”; we’ll also cover the key items on the Assets side. 1.3 Balance Sheet: Liabilities & Shareholders’ Equity (Video Length: 27:13)


In this video, you’ll learn the most common components of Liabilities & Shareholders’ Equity on a company’s Balance Sheet and you’ll get practice creating the second half of Apple’s Balance Sheet. 1.4 Cash Flow Statement (Video Length: 29:30) In this lesson, you’ll learn why the Cash Flow Statement is necessary and how to create one based on the company’s other financial statements; you’ll also learn which items are projected on the CFS vs. which ones flow in from elsewhere. 1.5 Linking the Financial Statements (Video Length: 22:34) In this lesson, we’ll finish linking together Apple’s 3 financial statements and you’ll learn which sections of the Balance Sheet and Cash Flow Statement correspond to each other, as well as the exceptions to those rules. 1.6 Overview of Interview Question Model (Video Length: 7:56) In this lesson, you’ll learn the key features and uses of a modified 3-statement model that you can use to practice accounting interview questions and to go through the remaining tutorials in this course. 1.7 Walking Through the 3 Financial Statements (Video Length: 4:24) In this video, you’ll learn how to answer the most important accounting question in investment banking interviews: how to walk through the 3 financial statements. 1.8 Depreciation Changes (Video Length: 5:01) In this lesson, you’ll learn how to answer accounting interview questions on depreciation and how depreciation changes affect the 3 statements. 1.9 Inventory Changes: Cash vs. Debt (Video Length: 5:41) In this lesson, you’ll learn how paying for inventory with cash vs. debt affects the 3 financial statements and how to answer related questions in interviews. 1.10 Inventory: LIFO vs. FIFO (Video Length: 11:19) In this lesson, you’ll learn how accounting for Inventory and Cost of Goods Sold differs under LIFO vs. FIFO, and how changing from one to the other affects key Income Statement and Balance Sheet line items. 1.11 Accrued Expense Accrual & Cash Payout (Video Length: 6:33) In this lesson, you’ll learn how to answer interview questions on accrued expenses and how accruing them and then paying them out in cash affect the 3 financial statements. 1.12 Deferred Revenue Accrual & Recognition (Video Length: 5:12)


In this video, you’ll learn how accruing and then recognizing deferred revenue as real revenue affects the 3 financial statements. 1.13 Deferred Income Taxes & Deferred Tax Liabilities (Video Length: 5:41) In this lesson, you’ll learn how changes to Deferred Income Taxes flow through the 3 statements and the role of Deferred Tax Assets/Liabilities. 1.14 Declaring & Issuing Dividends (Video Length: 8:06) In this lesson, you’ll learn how to reflect declaring and issuing Dividends on the 3 financial statements, and how to walk through both processes in interviews. 1.15 Issuing & Repurchasing Shares (Video Length: 8:40) You’ll learn how to model new share issuances and repurchases of common shares outstanding, and how to answer related interview questions in this lesson. 1.16 Raising & Paying Off Debt (Video Length: 5:11) In this lesson, you’ll learn how raising and paying off debt are reflected on the 3 financial statements and how to answer questions on changes to debt in interviews. 1.17 Equity & Debt Bailouts (Video Length: 9:20) In this lesson, you’ll learn how to translate equity and debt “bailouts” into accounting terms and what happens on the 3 financial statements in each scenario. 1.18 Goodwill Impairment (Video Length: 5:00) In this lesson, you’ll learn how to model Goodwill Impairment and how all 3 financial statements are affected. 1.19 Writing Down Owed Debt (Video Length: 6:41) This lesson will teach you how to answer one of the most counter-intuitive accounting interview questions: what happens when you write down a liability and how the 3 statements are affected. 1.20 Financing iPhone Factories with Debt (Part 1 – “Moment of Impact”) (Length: 4:11) In this video, we’ll walk through the first step of a multi-step scenario where Apple purchases iPhone factories using debt, and then owns them for several years. 1.21 Financing iPhone Factories with Debt (Part 2 – After 1 Year) (Video Length: 6:24) In this lesson, we’ll move out 1 year after Apple has purchased the factories and look at how to factor in Interest Expense and Depreciation on the 3 statements.


1.22 Financing iPhone Factories with Debt (Part 3 – PP&E Write-Down and Loan Payback) (Video Length: 10:01) In this lesson, we’ll complete our multi-step scenario and see what happens after another year of Depreciation and Interest Expense and what happens after Apple is forced to write down the value of its PP&E and repay its Debt. 1.23 Let’s Make Some iPhones (Part 1 – Ordering the Inventory) (Video Length: 2:47) In this lesson, we’ll go through the first step of another multi-part scenario – this time Apple purchases iPhone inventory and then manufactures it into finished products. 1.24 Let’s Make Some iPhones (Part 2 – Manufacturing & Selling) (Video Length: 4:28) In this video, we’ll complete this multi-step scenario and show you what happens when Apple manufactures its Inventory into iPhones and sells them to customers.

Module 2: Creating 3-Statement Projections In this course, we’ll show you how to create a 3-statement projection model from the ground up, starting with a blank sheet in Excel and progressing all the way to a finished model. We'll start by using Apple's Income Statement, Balance Sheet, and Cash Flow Statement we created previously and to analyze the historical numbers and determine trends. Then we'll use those trends to determine the company's profile in future years and project all 3 statements.

Files & Resources:  

3-Statement Projections – Quick Reference Guide Balancing Your Balance Sheet – Quick Reference Guide

2.1 Overview (Video Length: 7:56) In this lesson, you’ll learn about the modified model we’ll be using to project the 3 statements for Apple and the key strategies we’ll use to make the projections. 2.2 Income Statement Trends (Video Length: 12:04) In this lesson, you’ll learn how to analyze Apple’s historical Income Statement to determine key trends we’ll use to make our projections. 2.3 Income Statement Projections (Video Length: 12:24)


You’ll learn how to create income statement projections for Apple based on their historical filings, equity research, and our own estimates in this lesson. 2.4 Balance Sheet Trends (Video Length: 10:54) In this video, you’ll learn how to analyze Apple’s historical Balance Sheet and the key assumptions we’ll use to project it. 2.5 Balance Sheet Projections (Video Length: 12:35) In this lesson, you’ll learn how to project Apple’s Balance Sheet by carrying forward the key metrics and percentages we calculated in the previous video. 2.6 Cash Flow Statement Projections (Video Length: 15:57) This video will teach you how to make Cash Flow Statement projections for Apple, using the historical numbers and making basic assumptions. 2.7 Linking the 3 Financial Statements (Video Length: 11:52) In this lesson, you’ll learn how to link together the 3 financial statements in a 5-year projection model. 2.8 Amortization of Intangibles (Video Length: 6:29) This video will teach you how to project and properly link together Amortization of Intangibles, based on the Intangibles schedule in Apple’s 10-K. 2.9 Interest Income & Expense Projections (Video Length: 9:30) In this lesson, you’ll learn how to project Interest Income and Interest Expense for Apple and how to handle circular references in your model. 2.10 Deferred Income Taxes & Deferred Tax Liabilities (Video Length: 12:07) This video will teach you how Deferred Income Taxes, Deferred Tax Liabilities, and Deferred Tax Assets work in the context of a projection model by walking you through an example of how a company might record different Depreciation expenses for book and tax purposes. 2.11 Balancing Your Balance Sheet, Part 1 (Video Length: 6:02) In this lesson, you’ll learn how to fix a relatively simple problem with our 3-statement projection model and properly balance our Balance Sheet. 2.12 Balancing Your Balance Sheet, Part 2 (Video Length: 7:59) In this lesson, you’ll learn a strategy to effectively diagnose and fix problems when you have more complex errors in a 3-statement projection model.


2.13 Balancing Your Balance Sheet, Part 3 (Video Length: 7:28) This video will teach you how to fix another, more complex problem with our 3-statement model and another application of the balancing strategy you learned before. 2.14 Balancing Your Balance Sheet, Part 4 (Video Length: 10:26) In this lesson, we’ll tackle the most complex modeling problem we’ve seen thus far, and you’ll learn how to balance a Balance Sheet when the error is not readily apparent. 2.15 Interview Questions & Answers (Video Length: 15:48) In this video, you’ll learn the key interview questions you could receive on the topic of 3-statement projection models and how to answer them effectively.

Module 3: Equity Value, Enterprise Value & Multiples In this sequence of videos, we'll explain Equity Value, Enterprise Value, and common valuation multiples to bridge the gap between accounting and valuation and financial modeling. Buying a company is just like buying house: there are always hidden costs, and the "real" price you pay is different from the list price. Throughout this sequence, we'll use this house analogy to explain the key concepts of Equity Value and Enterprise Value. Then, we'll show you how to calculate key valuation metrics and multiples and answer common interview questions.

Files & Resources:  

Equity Value & Enterprise Value – Quick Reference Guide Valuation Metrics & Multiples – Quick Reference Guide

3.1 Overview and Market Capitalization (Video Length: 7:40) In this lesson, you’ll learn how we’ve modified our 3-statement model to support Equity Value, Enterprise Value, and Valuation Multiples, and you’ll get an introduction to Market Capitalization. 3.2 Options Overview (Video Length: 6:11) In this lesson, you’ll learn how to think about options conceptually and why options outstanding could potentially create new shares for a company like Apple. 3.3 Treasury Stock Method (Video Length: 11:15) In this video, you’ll learn how to use the Treasury Stock Method and Apple’s 10-K to calculate its Diluted Equity Value.


3.4 Treasury Stock Method Exercise (Video Length: 6:38) You’ll get to practice using the Treasury Stock Method yourself in this exercise – we depart from Apple’s filings to go over another example of how to use TSM and how to deal with multiple option tranches. 3.5 Convertible Bonds (Video Length: 11:51) In this lesson, you’ll learn the key terminology associated with Convertible Bonds and how to calculate dilution from convertibles to get to Diluted Equity Value. 3.6 Equity Value vs. Enterprise Value (Video Length: 7:27) In this lesson, you’ll learn the difference between Equity Value and Enterprise Value and why we look at both of them when valuing a company. 3.7 Calculating Enterprise Value (Video Length: 9:28) In this lesson, you’ll learn how to calculate Apple’s Enterprise Value using our 3-statement projection model as well as information from their 10-K. 3.8 Enterprise Value Advanced Additions (Video Length: 16:02) In this lesson, you’ll learn about other additions we could make to the Enterprise Value formula – such as Equity Investments, Net Operating Losses, Capital Leases, and Pension Obligations –and you’ll learn how to calculate whether an Operating Lease should be counted as a Capital Lease. 3.9 Key Valuation Metrics (Video Length: 14:56) In this lesson, you’ll learn about key valuation metrics such as EBIT, EBITDA, Free Cash Flow, and Book Value – and you’ll get practice making the calculations yourself. 3.10 Key Valuation Multiples (Video Length: 15:28) You’ll learn about the most important valuation multiples, such as EV / Revenue, EV / EBITDA, EV / EBIT, P / E, and P / BV and get practice calculating them yourself in this lesson – and you’ll learn about industry-specific valuation multiples for retail, energy, real estate, and Internet companies. 3.11 Equity Value vs. Enterprise Value in Valuation Multiples (Video Length: 11:35) In this lesson, you’ll learn when to use Equity Value and when to use Enterprise Value with different valuation multiples and industry-specific valuation multiples. 3.12 Interview Questions & Answers (Video Length: 14:11) You’ll learn how to answer the most common interview questions on Equity Value, Enterprise Value, and Valuation Multiples in this lesson.


Module 4: Valuation Overview & Comparables In this course, we'll begin our discussion of Valuation with an overview of how we use public company comparables, precedent transactions, and discounted cash flow analysis to value a company. We start by showing you how to select comparable companies and transactions, then how to find the data in filings, and finally how to calculate and display all the relevant metrics.

Files & Resources: 

Public Comps & Precedent Transactions – Quick Reference Guide

4.1 Overview (Video Length: 8:02) In this lesson, you’ll learn about the valuation model we’re going to build for Apple and the different methodologies we’ll use to value the company. 4.2 Selecting Public Company Comparables (Video Length: 10:01) You’ll learn how to find comparable companies and then use screening criteria to narrow down the set in this lesson. 4.3 Calculating Enterprise Value for Public Company Comparables (Video Length: 13:51) In this lesson, you’ll learn how to go through Hewlett-Packard’s 10-K filing to find the information necessary to calculate its Enterprise Value – and where to find numbers for more unusual items like unfunded pension obligations. 4.4 Calculating Valuation Metrics for Public Company Comparables (Video Length: 9:40) In this video, you’ll learn how to pull Hewlett-Packard’s historical and projected income statements from a combination of their SEC filings and Credit Suisse equity research. 4.5 Public Company Comparables – Operating Metrics (Video Length: 13:47) In this lesson, you’ll learn how to calculate the key operating metrics used in comparable company analysis and you’ll get practice making the calculations yourself. 4.6 Public Company Comparables – Valuation Multiples (Video Length: 10:25) In this lesson, you’ll learn how to calculate valuation multiples for comparable company analysis and you’ll get practice making the calculations using all the data we’ve gathered so far. 4.7 Selecting Precedent Transactions (Video Length: 10:26) In this lesson, you’ll learn where we can find information on precedent transactions, how to select an appropriate set, and how to narrow down the transactions based on size, industry, geography, and date.


4.8 Precedent Transactions – Valuation Multiples (Video Length: 10:32) This video will teach you how to calculate and use valuation multiples in a precedent transactions analysis – and what these multiples tell us about the deals we’ve selected. Module 5: Discounted Cash Flow Analysis In this course, we'll extend our valuation model by projecting our company's cash flow into future years and building a Discounted Cash Flow Analysis from the ground up. We'll start with an overview of the analysis and our basic assumptions, and then move into the projections and how to combine their net present value and the terminal value to arrive at an overall valuation. Then we'll take a detailed look at how to calculate the Weighted Average Cost of Capital and go through possible interview questions on all these topics.


Discounted Cash Flow Analysis – Quick Reference Guide

5.1 Overview & Assumptions (Video Length: 5:07) In this lesson, you’ll learn about the key assumptions we need in a DCF analysis and how we’ll use our previous model for Apple to create a DCF. 5.2 Projecting Cash Flows (Video Length: 11:36) This video will teach you how to project a company’s Unlevered Free Cash Flow in a DCF analysis – and you’ll get practice making this projection using our previously created 3-statement model for Apple. 5.3 Discounting Cash Flows (Video Length: 5:08) In this lesson, you’ll learn how to discount a company’s cash flows to their present value in a DCF analysis. 5.4 Mid-Year Discount Convention (Video Length: 3:55) In this lesson, you’ll learn how to apply the mid-year discount to a company’s projected cash flows to more accurately estimate their net present value. 5.5 Terminal Value – Multiples Method (Video Length: 6:31) In this lesson, you’ll learn how to calculate the Terminal Value in a DCF based on exit multiples and how we can select the proper multiple to use for Apple.


5.6 Terminal Value – Gordon Growth Method (Video Length: 7:21) This video will teach you how to calculate the Terminal Value using the Gordon Growth method, and how to modify the discount formula and present value calculation to support both Terminal Value calculation methods. 5.7 Implied Share Price Calculation & Sensitivity Tables (Video Length: 11:33) In this video, you’ll learn how to calculate Apple’s implied share price based on the DCF and how to set up sensitivity tables to assess the valuation under different assumptions. 5.8 Walking Through a DCF (Video Length: 2:54) In this lesson, you’ll learn how to walk the interviewer through a DCF analysis when it comes up in an investment banking or private equity interview. 5.9 Interview Questions & Answers (Video Length: 14:43) This lesson will teach you how to answer the most common interview questions on a DCF analysis. 5.10 WACC – Overview & Assumptions (Video Length: 12:14) In this video, you’ll learn about the concept behind Weighted Average Cost of Capital and the key assumptions we need to make when using WACC as the Discount Rate in a DCF analysis. 5.11 WACC – Calculating Unlevered Beta (Video Length: 17:39) In this lesson, you’ll learn how to think about Unlevered Beta and Levered Beta conceptually, how to move between the two, and then you’ll get practice calculating Unlevered Beta yourself. 5.12 WACC – Calculating Our Own Beta (Video Length: 7:22) In this lesson, you’ll learn how and why we must re-lever the median Unlevered Beta from the comparable companies to calculate Apple’s Levered Beta for use in the Cost of Equity calculation. 5.13 WACC – Cost of Equity & WACC Calculation (Video Length: 7:02) In this video, you’ll learn how to tie everything together and calculate Cost of Equity and WACC for use as the Discount Rates in our DCF analysis. 5.14 WACC – Interview Questions & Answers (Video Length: 17:09) In this video, you’ll learn how to answer the key interview questions you get on the topics of WACC, Cost of Equity, and Unlevered and Levered Beta.


Module 6: Valuation Summary In this course, we'll link together the valuation methodologies we've created in previous courses and use them to arrive at an overall idea of what our company is worth. Once we've done that, we'll go through each methodology and summarize the conclusions we can draw and what the model tells us about whether this company is over-valued or under-valued. Finally, we'll answer a set of sample interview questions on the topic of valuation, focusing on the overall methodology as well as public company comparables and precedent transactions. 6.1 Linking the Methodologies (Video Length: 21:43) In this video, you’ll learn how to link together the public company comparables, precedent transactions, and DCF analysis, and you’ll get practice creating your own summary sheet for the valuation. 6.2 Creating the “Football Field” Valuation Graph (Video Length: 11:46) In this lesson, you’ll learn how to create the infamous “football field” graph that lets you visualize a company’s valuation and see how different methodologies stack up against each other. 6.3 Interview Questions & Answers (Video Length: 19:47) In this lesson, you’ll learn how to answer the key interview questions you could receive on the topics of valuation, public company comparables, and precedent transactions.

Module 7: Merger Model In this course, we'll create a merger model between Apple and Research in Motion from the ground up and show how you combine the income statements of the buyer and seller and the purchase assumptions to get a view of the combined company. We'll start by extending our house analogy to explain the concept of a merger model, and then go into the mechanics of the model and the key acquisition effects. Then, we'll take a look at some advanced additions: revenue and expense synergies, combining the balance sheets, goodwill, intangible assets, and deferred tax liabilities, and sensitivity tables.


Merger Model – Quick Reference Guide

7.1 Overview (Video Length: 10:06) In this lesson, we’ll extend our analogy of buying a house to the merger model and explain what a down payment, mortgage, and sale of your existing house correspond to in finance terms – and you’ll learn how we’ve modified the valuation model to support a merger between Apple and Research in Motion.


7.2 Transaction Assumptions (Video Length: 12:02) In this lesson, you’ll learn about the key assumptions necessary to create a merger model, including purchase price and % cash, stock, and debt. 7.3 Buyer & Seller Projected Income Statements (Video Length: 11:31) In this lesson, you’ll learn how we put together income statements for the buyer and seller in a merger model using SEC filings and equity research, and you’ll get practice linking in the relevant information for Apple. 7.4 Combining the Income Statements (Video Length: 11:35) In this lesson, you’ll learn how to combine the income statements of both companies and take into account foregone interest on cash, interest paid on debt, and new shares issued to finance the transaction. 7.5 Calculating Accretion / Dilution (Video Length: 5:30) In this video, you’ll learn how to finish off our merger model by calculating the accretion / dilution and learning what that tells you about the transaction’s feasibility. 7.6 Revenue Synergies (Video Length: 9:52) In this lesson, you’ll learn about revenue synergies and see an example of how they might occur in a deal between Apple and RIMM, as well as how to calculate them and incorporate them into our merger model. 7.7 Expense Synergies (Video Length: 9:24) In this lesson, you’ll learn about expense synergies, see how they might apply to Apple and RIMM, and learn how to calculate them and use them in a merger model. 7.8 Why We Need Goodwill & Intangible Assets (Video Length: 12:35) In this video we’ll begin combining the balance sheets of the buyer and seller, and you’ll see why we need to create Goodwill, Intangible Assets, and related items in an acquisition. 7.9 Calculating Goodwill, Intangible Assets, Asset Write-Ups & Deferred Tax Liabilities (Video Length: 15:35) In this lesson, you’ll learn how to calculate the Goodwill, Intangible Assets, Asset Write-Ups, and Deferred Tax Liabilities that get created in an acquisition – and why we need each of these items.


7.10 Combining & Adjusting the Balance Sheet (Video Length: 7:10) In this lesson, you’ll learn how to combine the balance sheets of the buyer and seller and then how to adjust them for acquisition effects to ensure that both sides balance. 7.11 Adjusting the Income Statement (Video Length: 7:19) In this video, you’ll learn how to adjust the combined income statement to take into account asset write-ups and amortization of newly created intangibles – and why other items will not affect our income statement at all. 7.12 Sensitivity Tables (Video Length: 8:58) In this video, you’ll learn how to create sensitivity tables for a merger model that allow us to analyze the impact of purchase price, synergies, and other factors on the combined company’s EPS. 7.13 Walking Through a Merger Model (Video Length: 3:15) In this lesson, you’ll learn how to walk the interviewer through a merger model when it comes up in the course of an interview. 7.14 Interview Questions & Answers (Video Length: 17:49) In this video, you’ll learn how to answer the key interview questions you could receive on accretion / dilution analysis, synergies, and the treatment of goodwill, intangibles, and related items in merger models.

Module 8: LBO Model In this course, we'll show you how to build an LBO model from the ground up, starting with an overview of the concepts behind the model and proceeding from assumptions to finished model. We'll use the analogy of buying a house to explain LBO models, and then go through the transaction and operating assumptions necessary to complete the model. Then, we'll project Apple's financial statements 5 years and get a view of what it looks like when investors sell it. Finally, we'll link together the entire model, project debt and interest payments, and look at investor returns over a range of values using sensitivity tables.


Leveraged Buyout (LBO) Model – Quick Reference Guide

8.1 LBO Overview (Video Length: 7:11) In this lesson, we’ll extend our house buying analogy to LBO models and you’ll learn the key reason why leveraged buyouts work and why PE firms use them to buy companies.


8.2 Transaction Assumptions (Video Length: 11:22) In this lesson, you’ll learn how to make the key assumptions we need for an LBO model – including purchase price, % debt and equity, and transaction fee percentages. 8.3 Debt Assumptions (Video Length: 8:03) In this lesson, you’ll learn the difference between bank debt and high-yield debt, standard assumptions for each one, and why we often use both types of debt in LBO models. 8.4 Sources & Uses (Video Length: 6:26) In this video, you’ll learn how to create a sources & uses schedule for an LBO model that shows us where the funds are coming from and where they’re going to. 8.5 Operating Assumptions & Income Statement (Video Length: 10:46) In this lesson, you’ll learn about the key operating assumptions we need for our LBO model and you’ll get practice creating income statement projections for Apple. 8.6 Cash Flow Statement (Video Length: 9:26) You’ll learn how to modify Apple’s cash flow statement for an LBO model and how to make 5-year projections that we can use to determine debt payoffs in this lesson. 8.7 Debt Schedules (Video Length: 16:50) In this lesson, you’ll learn how to calculate mandatory repayments, optional repayments, and interest expense on debt in an LBO model, and you’ll get practice creating a schedule for high-yield debt. 8.8 Linking the Statements (Video Length: 4:17) In this lesson, you’ll learn how to link together the financial statements in our LBO model to ensure that debt is being repaid properly and that our balance sheet balances. 8.9 Calculating IRR (Video Length: 8:22) In this lesson, you’ll learn how to calculate the internal rate of return (IRR) to the private equity investors in an LBO. 8.10 Sensitivity Tables (Video Length: 9:50) In this lesson, you’ll learn how to create sensitivity tables in an LBO to analyze the returns under different assumptions for purchase price, exit multiple, and leverage.


8.11 Walking Through the Model (Video Length: 2:35) In this lesson, you’ll learn how to walk through an LBO model in the context of an investment banking or private equity interview. 8.12 Interview Questions & Answers (Video Length: 15:13) In this lesson, you’ll learn how to answer some of the most common interview questions you could get on the topic of LBO models and debt.

Module 9: More Advanced LBO Model In this course, you'll learn how to build a more advanced LBO model that incorporates all 3 financial statements, pro-forma balance sheet adjustments, and 5 tranches of debt from the revolver to PIK notes. We'll start by explaining how this model differs from the more basic one that we looked at, and then go into transaction assumptions, sources & uses, purchase price allocation and balance sheet adjustments. Then, we'll cover how to set up a more advanced debt schedule, build in a cash flow sweep and revolver borrowing, and conclude by linking everything together and calculating returns and sensitivity tables.


Leveraged Buyout (LBO) Model – Quick Reference Guide

9.1 Overview & Changes to Model (Video Length: 8:09) In this lesson, you’ll learn how our more advanced LBO model differs from the basic one, and how we’ve modified the 3-statement model for Apple to support this more advanced LBO scenario. 9.2 Transaction Assumptions (Video Length: 8:11) In this lesson, you’ll learn how our transaction assumptions for this more advanced model differ from what we saw previously in the basic LBO model. 9.3 Debt Assumptions (Video Length: 14:51) In this lesson, you’ll learn how to set up interest rate and principal repayment assumptions for the Revolver, Term Loan A, Term Loan B, Subordinated Notes, and PIK Notes. 9.4 Sources & Uses (Video Length: 7:44) In this lesson, you’ll learn how to create a more complex Sources & Uses schedule that includes excess cash, additional debt tranches, and both expensed and capitalized transaction fees.


9.5 Purchase Price Allocation (Video Length: 14:07) In this lesson, you’ll learn how to create a purchase price allocation schedule in a more advanced LBO model and how to calculate Goodwill, Intangible Assets, Asset Write-Ups and Deferred Tax Liabilities. 9.6 Pro-Forma Balance Sheet Adjustments (Video Length: 14:23) In this lesson, you’ll learn how to adjust Apple’s balance sheet and take into account acquisition effects from the LBO – such as excess cash used, asset write-ups, new debt raised, deferred tax liabilities, and expensed and capitalized transaction fees. 9.7 Debt Schedules: Interest (Video Length: 10:36) In this lesson, you’ll learn how to incorporate circular references into our LBO model to calculate interest expense on each tranche of debt and to determine how the interest rates change each year. 9.8 Debt Schedules: Mandatory Repayments (Video Length: 10:25) In this lesson, you’ll learn how to calculate the cash flow available for debt repayment, the mandatory debt payments each year, and how much revolver borrowing is required. 9.9 Debt Schedules: Optional Repayments (Video Length: 12:29) In this video, you’ll learn how to calculate optional repayments for each tranche of debt, how to set up a cash flow sweep, and how to error-check our formulas to make sure we always repay the right amount. 9.10 Modifying the Income Statement & Cash Flow Statement (Video Length: 9:07) In this lesson, you’ll learn to how add acquisition effects from items such as the PP&E write-up, new intangible assets, and PIK loans to the Income Statement and Cash Flow Statement. 9.11 Linking the Statements (Video Length: 9:58) In this lesson, you’ll learn how to link together all 3 statements in our more advanced LBO model, properly reflect the changes in debt, and ensure that the balance sheet balances. 9.12 IRR Calculation & Sensitivities (Video Length: 10:22) In this lesson, you’ll learn how to calculate the IRR in a more advanced LBO model and how to set up sensitivity tables to analyze different scenarios. 9.13 Interview Questions & Answers (Video Length: 18:35) In this final video in the more advanced LBO model series, you’ll learn how to answer the most common interview questions on different types of debt, purchase price allocation, and more advanced debt schedules.


Advanced Financial Modeling 

Advanced Financial Modeling teaches you how investment bankers model companies in real life. Everything is based on a case study of Microsoft’s offer to acquire Yahoo, and real SEC filings and equity research from banks such as Credit Suisse and Morgan Stanley are used throughout the course.

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You’ll learn advanced modeling skills by completing a detailed operating model, a full valuation using 9 methodologies, an advanced merger model that combines all 3 statements and an advanced LBO model with support for 7 tranches of debt.

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NEW: After completing the course, you can take a challenging Quiz to test your financial modeling knowledge. When you achieve a mark of 90% of higher you’ll be awarded a Certificate to include in your resume / CV and discuss in interviews.

Module 1: Advanced Financial Modeling: Yahoo! Operating Model This course will teach you how to create a detailed 3-statement model for Yahoo!, including revenue and expense builds by segment and supporting schedules such as the PP&E, Working Capital, and Share/Dividend schedules. We'll use a combination of Yahoo's own filings, their investor presentations, and an equity research report from Morgan Stanley to create our 5-year projection model. Once we finish the core operating model, we'll also cover supplemental topics such as deferred income taxes, quarterly projections and calendarization, and possible interview questions and answers. 1.1 Overview & Excel Setup (Video Length: 24:04) In this lesson, you’ll get an overview of the Advanced Financial Modeling course and the MicrosoftYahoo case study, and you’ll learn how it’s different from the Fundamentals course and the more complex topics we’ll cover here. 1.2 Adjusting the Income Statement for Non-Cash Charges and Traffic Acquisition Costs (Video Length: 21:53) You’ll learn how to adjust Yahoo’s income statement for Traffic Acquisition Costs and how to determine the Depreciation, Amortization, and Stock-Based Compensation embedded in different line items – even when the numbers are hidden in footnotes – so that we can create a “cleaned” version of the statements that allows for quick calculation of EBITDA. 1.3 Balance Sheet Overview (Video Length: 21:07) In this video, you’ll learn about all the different items on Yahoo’s Balance Sheet and Statement of Shareholders’ Equity – from familiar ones to less common items such as Equity Interests and Noncontrolling Interests.


1.4 Cash Flow Statement Overview (Video Length: 18:20) This lesson will teach you how to analyze Yahoo’s Cash Flow Statement and what more advanced items such as Excess Tax Benefits from Stock-Based Compensation and Earnings in Equity Interests actually mean; you’ll also learn how to modify a company’s Cash Flow Statement to support a more robust 3statement model. 1.5 How Noncontrolling Interests Flow Through the 3 Statements (Video Length: 18:22) In this lesson, you’ll learn how Earnings Attributable to Noncontrolling Interests (aka Minority Interests) flow through the 3 financial statements and how you consolidate the statements for a parent company and a wholly-owned subsidiary. 1.6 How Investments in Equity Interests Flow Through the 3 Statements (Video Length: 17:02) This video will teach you the proper treatment for Earnings in Equity Interests and how to account for both Net Income and Dividends from these entities on all 3 statements. We’ll conclude by looking at a company that has both Noncontrolling Interests and Equity Interests and see how everything links together properly on the financial statements. 1.7 Revenue Model Overview (Video Length: 10:41) In this lesson, you’ll learn how to separate a company’s revenue by segment and how to project growth rates based on equity research and investor presentations. You’ll also learn what the purpose of a revenue model is and why it doesn’t necessarily affect the final output of the 3-statement model. 1.8 Revenue Model Part 1 – Search Advertising (Video Length: 22:13) You’ll learn the 3 major methodologies you can use to project revenue in this lesson, and then you’ll use a tops-down approach to estimate Yahoo’s Search Advertising revenue based on Comscore data and market size and share expectations. 1.9 Revenue Model Part 2 – Display Advertising (Video Length: 17:37) In this video, you’ll learn how to apply a bottoms-up approach to estimate Yahoo’s Display Advertising revenue and how you can estimate their revenue per pageview based on equity research and data from their filings. 1.10 Revenue Model Part 3 – Other Revenue (Video Length: 18:20) This final lesson in the revenue model will teach you how to estimate Yahoo’s subscription, affiliate, and other revenue based on subscriber fees and growth and percentage estimates; at the end we’ll link together everything and compare our numbers across 3 different operating cases to Morgan Stanley’s numbers and management’s expectations. 1.11 Expense Model Part 1 – Overview, Cost of Revenue, and Employees (Video Length: 20:56)


In this video, you’ll learn the difference between employee-linked expenses and overhead expenses, and you’ll learn how to remove overhead expenses such as advertising and rent from employee-linked expenses. You will also learn how we can estimate Yahoo’s Cost of Revenue and its employees by division, in the absence of substantial information in their filings. 1.12 Expense Model Part 2 – Sales & Marketing (Video Length: 17:47) This lesson will teach you how to project Yahoo’s Sales & Marketing expense on a per-employee level, and how to estimate average salaries, commissions, T&E, benefits, and overhead expenses – you will also learn why the employee count should contribute more to total expenses than an increase in peremployee expenses. 1.13 Expense Model Part 3 – Product Development and General & Administrative (Video Length: 19:23) In this lesson, you’ll get practice completing Yahoo’s Product Development and General & Administrative expense projections, and you’ll understand how to link together both per-employee and overhead expenses to calculate the total COGS and Operating Expenses for the company. 1.14 Income Statement Projections (Video Length: 21:11) In this video, we’ll pull together the revenue and expense projections to create a detailed income statement for Yahoo. You’ll also learn which items we can pull from internal estimates in their filings, which items should be averages or held constant, and which deserve more detail – as well as how to calculate EBITDA based on the income statement. 1.15 Balance Sheet Projections (Video Length: 19:00) This lesson will show you how to project Yahoo’s balance sheet, including which items should be linked to the income statement and which should flow in from the cash flow statement. You’ll also learn how to project the interest rates of interest-earning securities based on LIBOR spreads, and which projection methods are most appropriate for different types of companies. 1.16 Cash Flow Statement Projections (Video Length: 14:57) In this lesson, you’ll learn how to project items on Yahoo’s cash flow statement, such as tax benefits from stock-based compensation and excess tax benefits from stock based compensation, as well as other more advanced items such as dividends from equity interests; you will also see which items can be projected on the CFS and which must flow in from supporting schedules. 1.17 Share Issuances, Repurchases & Dividends (Video Length: 13:30) This video will teach you how to estimate dividends and changes to Yahoo’s share count based on their share repurchase and issuances each year – you’ll also learn why a more complex method for estimating share count isn’t necessarily better, and which types of companies tend to place a higher emphasis on EPS and P/E. 1.18 PP&E Schedule (Video Length: 28:29)


In this lesson, you’ll learn how to create a PP&E Schedule for Yahoo to more accurately project its Depreciation and Capital Expenditures (CapEx) numbers going forward. You’ll learn how to create a Depreciation waterfall schedule, how to project CapEx by segment, and whether or not the schedule itself impacts the final output in our model. 1.19 Linking the Statements (Video Length: 21:32) You’ll learn how to finish linking together the 3 financial statements in this video, including the rule that you can use to ensure that your balance sheet balances, and what to do with less common items such as excess tax benefits and gains or losses on asset sales. You will also learn how to calculate interest income/expense using circular references, and why we need to include a circularity breaker in the model. 1.20 Enterprise Value and Operating Model Summary (Video Length: 22:56) In this final lesson of the core Operating Model, you will get practice creating a summary page that you can show to your MD when he asks about a company’s performance. We will also go through the Enterprise Value calculation for Yahoo and learn how to calculate their valuation multiples based on our projections. 1.21 Quarterly Projections and Calendarization (Video Length: 36:17) In this lesson, you’ll learn how to move between quarterly and annual financial statements for a company, and how you can estimate quarterly revenue, expenses, and other line items based on historical trends. You’ll also learn the trade-offs of quarterly vs. annual projections, and how to calendarize metrics such as revenue and EBITDA for use when calculating Trailing Twelve Month numbers. 1.22 Deferred Income Taxes and Different Methods of Depreciation (Video Length: 20:05) This video will cover how deferred taxes and deferred tax liabilities get created, and you’ll learn how to use alternate depreciation methods such as Double-Declining Balance and Sum-of-Years’ Digits. We’ll also create a model where a company depreciates assets more quickly for tax purposes, resulting in a DTL being created and then paid off over time. 1.23 Operating Model Interview Questions & Answers (Video Length: 20:16) In this final lesson, you’ll learn about the most common interview questions on advanced 3-statement modeling, revenue models, and expense models, and what to expect in interviews when you discuss this case study. We’ll review the more advanced concepts covered in the course, and also point out how models for companies in other industries might differ.

Module 2: Advanced Financial Modeling: Yahoo! Valuation


In this course, you'll learn how to value Yahoo! using public company comparables, precedent transactions, DCF, and more "exotic" methodologies like future share price analysis, sum-of-the-parts, and liquidation valuation. We'll also look at how to value Yahoo's equity investments and net operating losses, and how to factor these into our analysis. Just like at a real bank, we'll use 10-K and 10-Q filings as well as real equity research to complete this exercise. 2.1 Overview (Video Length: 14:41) In this lesson, we'll learn how to value Yahoo, which methodologies we'll use, and the key challenges we'll face in valuing such a complex entity. 2.2 Public Company Comparables Selection (Video Length: 8:39) In this video, you'll learn how to select the appropriate public company comparables for Yahoo! based on industry and financial criteria. 2.3 Google (GOOG) – Public Company Comparable (Video Length: 28:20) In this lesson, you'll learn how to analyze Google's 10-K filings and equity research to determine its TTM and projected Revenue, EBIT, EBITDA, and Pro-Forma EPS figures. 2.4 eBay (EBAY) – Public Company Comparable (Video Length: 20:20) In this lesson, you'll analyze eBay's 10-K filings and equity research to determine its TTM and projected Revenue, EBIT, EBITDA, and Pro-Forma EPS figures – as well as its add-backs and non-recurring charges. 2.5 Amazon (AMZN) – Public Company Comparable (Video Length: 25:47) In this lesson, you'll analyze Amazon.com's 10-K filings and equity research to determine its TTM and projected Revenue, EBIT, EBITDA, and Pro-Forma EPS figures – as well as its add-backs and non-recurring charges. 2.6 InterActiveCorp (IACI) – Public Company Comparable (Video Length: 26:56) In this video, you'll learn how to determine historical and forward financial metrics for a more "messy" company like IACI, with subsidiaries, equity investments, and multiple non-recurring charges. 2.7 Yahoo! (YHOO) – Public Company Comparable (Video Length: 21:38) In this lesson, you'll learn how to format Yahoo's historical and projected financial information appropriately and how to calculate its diluted shares based on its outstanding options and convertible debt. 2.8 Valuing Yahoo's Equity Interests (Video Length: 30:16)


In this lesson, we'll learn how to assess the market value of Yahoo's investments in other companies, how to pick a discount rate, and why it's so important to look at market value vs. book value. 2.9 Valuing Yahoo's Net Operating Losses (NOLs) (Video Length: 23:41) In this lesson, we'll learn how to apply NOLs when modeling a real company's estimated taxes, and we'll learn 2 different methods to determine the present value of Net Operating Losses – based on tax savings and value to the acquirer in an acquisition. 2.10 Displaying the Public Company Comparables (Video Length: 15:23) In this lesson, you'll learn how to format Yahoo's public company comparables using the HLOOKUP function to separate calculation from formatting – and you'll see why Yahoo is undervalued next to its peers. 2.11 Precedent Transactions Selection (Video Length: 12:37) In this video, you'll learn how to select precedent transactions for Yahoo!, based on a set of recent Internet M&A deals and using financial and industry screening criteria. 2.12 Microsoft / aQuantive – Precedent Transaction (Video Length: 30:41) In this lesson, we'll learn how to calendarize aQuantive's financial statements, how to get projections from equity research, and how to calculate the transaction value and multiples for Microsoft's acquisition of aQuantive. 2.13 Google / DoubleClick – Precedent Transaction (Video Length: 17:02) In this lesson, you'll learn how to gather data for a private seller in an M&A transaction – DoubleClick – and how we can use press releases and equity research to estimate the multiples. 2.14 Publicis / Digitas – Precedent Transaction (Video Length: 24:36) This video will teach you how to analyze an M&A transaction between a French buyer and a US seller, and how to properly adjust and calendarize financial statements for a 9-month period. 2.15 Yahoo / RightMedia – Precedent Transaction (Video Length: 10:42) In this lesson, you'll learn how to determine valuation multiples for an early-stage, private seller with almost no public information – and how we make estimates for companies with limited information. 2.16 Investor Group / Vertrue – Precedent Transaction (Video Length: 25:17) In this lesson, you'll learn how to calendarize and adjust financial statements for a company with a fiscal year that does NOT end on December 31 – and how to calculate the appropriate transaction multiples. 2.17 NBC Universal / iVillage – Precedent Transaction (Video Length: 22:08)


In this lesson, you'll learn how to analyze a precedent transaction when we have limited information from equity research and need to hunt for some of the projected numbers. 2.18 WPP Group / 24/7 Real Media – Precedent Transaction (Video Length: 24:03) In this lesson, you'll learn how to complete a precedent transaction analysis for a company with convertible debt, warrants, and a confusing breakout of amortization in their financial statements. 2.19 Displaying the Precedent Transactions (Video Length: 11:49) In this video, you'll learn how to use the HLOOKUP function to select the appropriate data to display for our precedent transactions analysis and how to format everything correctly. 2.20 Selecting M&A Premiums (Video Length: 14:39) In this lesson, you'll learn how we select M&A premiums for use in a valuation, and how we screen our initial set to get a suitable list of transactions. 2.21 Displaying the M&A Premiums (Video Length: 16:34) In this video, you'll learn how to format and display M&A premiums for use in a real valuation, and how we select the appropriate metrics and premium ranges to show. 2.22 DCF – Cash Flow Projections & Mid-Year Discount (Video Length: 22:15) In this lesson, we'll begin our DCF analysis of Yahoo! by projecting its cash flows, applying the mid-year discount convention, and calculating its terminal value using the multiples method and long-term growth rate method – and you'll learn why you have to calculate the terminal differently depending on how you've set up the mid-year discount. 2.23 DCF – Applying the Mid-Year Discount to Stub Periods (Video Length: 12:43) In this lesson, you'll learn the counter-intuitive math used to apply a mid-year discount when you have a stub period in a DCF (e.g. Q4 of the previous year) – and how we have to modify the formulas for terminal value and PV of cash flows. 2.24 DCF – WACC Calculation (Video Length: 10:49) In this lesson, you'll learn how to calculate WACC for a real company with information from filings and using lookup functions to pull in data we calculated previously. 2.25 DCF – Share Price Calculation & Sensitivities (Video Length: 11:13) In this lesson, you'll learn how to go from terminal value to Yahoo's implied per-share value using a circular calculation to account for dilution from options and convertible debt – and you'll learn how to set up sensitivity tables to analyze the impact of different variables on our analysis.


2.26 Future Share Price Analysis (Video Length: 10:57) In this lesson, you'll learn how to create a future share price analysis for Yahoo! that calculates the present value of its projected 1-year forward share price. 2.27 Sum of the Parts Analysis (Video Length: 14:56) In this lesson, you'll learn how to create a sum-of-the-parts valuation for Yahoo! that assigns different multiples to each of its divisions, values them separately, and then combines them at the end to reach a per-share value. 2.28 Liquidation Valuation (Video Length: 17:13) In this lesson, you'll learn how to value Yahoo! using its balance sheet and assuming that its assets are sold off to pay back its liabilities – and you'll see how to create and apply a liquidation valuation to a real company. 2.29 Valuation Summary & Linking Data (Video Length: 21:17) In this lesson, you'll learn how we pick the methodologies and ranges to use in our valuation summary, as well as how to link everything in and how to calculate the per-share value at different ranges using a series of data tables and circular calculations. 2.30 Making the "Football Field" (Video Length: 16:02) In this lesson, you'll learn how to create the infamous "football field" graph for displaying each of the valuation methodologies side-by-side and making everything easily digestible for management teams.

Module 3: Advanced Financial Modeling: Microsoft / Yahoo! Merger Model In this course, you'll learn how to create a full-fledged 3-statement merger model showing what Microsoft's acquisition of Yahoo would really look like. In addition to covering how to combine and project the 3 statements for both companies, we'll look at more advanced topics like detailed transaction adjustments, asset write-ups, net operating losses in M&A, synergies, and contribution analysis. Just like at a real bank, we'll use 10-K and 10-Q filings as well as real equity research to complete this exercise.


Merger Model Key Formulas & Cheat Sheet – Quick Reference Guide Stock vs. Asset vs. 338(h)(10) Transactions – Quick Reference Guide

3.1 Overview (Video Length: 12:49)


In this video, we’ll get an overview of how to create a real, 3-statement merger model between Microsoft and Yahoo! – and all the added complexity that comes along with it. 3.2 Buyer & Seller Profiles and Microsoft Income Statement Projections (Length: 30:12) In this lesson, you’ll learn how to create pre-transaction profiles for Microsoft and Yahoo! and how to use Microsoft’s 10-K and equity research to project its Income Statement. 3.3 Microsoft Balance Sheet Projections (Video Length: 30:15) In this video, we’ll learn how to project Microsoft’s Balance Sheet based on its historical figures and its revenue, COGS, and operating expenses. 3.4 Microsoft Cash Flow Statement Projections (Video Length: 29:28) In this lesson, you’ll learn to project Microsoft’s Cash Flow Statement based on its filings and equity research, and how to adjust for errors and omissions in research. 3.5 Linking Microsoft’s 3 Financial Statements (Video Length: 16:09) In this lesson, we’ll complete our 3-statement projection model for Microsoft by linking together its statements and filling in the remaining blank items. 3.6 Transaction Assumptions & Funds Required Calculation (Video Length: 27:12) In this lesson, you’ll learn how to set up the most important transaction assumptions in a merger model and how to calculate the funds that Microsoft would need to acquire Yahoo!, as well as the differences between a stock purchase, asset purchase, and 338(h)(10) purchase. 3.7 Transaction Scenarios (Video Length: 20:34) In this lesson, we’ll learn how to set up multiple scenarios for different transaction structures and purchase prices in our merger model – as well as how to fix our model when calculations don’t work correctly. 3.8 Sources & Uses (Video Length: 11:34) In this video, you’ll learn how to create a Sources & Uses schedule for this merger model that maps out where we’re getting our funding from, and what we’re using it for. 3.9 Purchase Price Allocation, Goodwill and Other Intangibles Creation & Asset Write-Ups (Video Length: 40:50) In this lesson, you’ll learn how to properly “divide up” and allocate the purchase price in a merger model, how to calculate new goodwill created, how to adjust for intangible and tangible asset write-ups, and how to create and write-up / write-down deferred tax assets and deferred tax liabilities, as well as deferred revenue write-downs.


3.10 Combining Microsoft and Yahoo!’s Balance Sheets (Video Length: 26:39) In this lesson, we’ll learn how to combine Microsoft and Yahoo’s pre-transaction Balance Sheets and make the appropriate debits and credits to each side to create a pro-forma combined Balance Sheet. 3.11 Combining Microsoft and Yahoo!’s Income Statements (Video Length: 36:53) In this lesson, you’ll learn how to combine Microsoft and Yahoo!’s Income Statements, and how to adjust for acquisition effects from foregone cash interest, debt, intangibles, and other write-ups / writedowns. 3.12 Revenue Synergies by Segment Calculation (Video Length: 18:36) In this lesson, you’ll learn how to calculate revenue synergies in this merger model by assuming an increase to Yahoo!’s revenue per search and revenue per pageview metrics. 3.13 Expense Synergies by Segment Calculation (Video Length: 21:39) In this video, you’ll learn how to calculate expense synergies in a merger model by making estimates for workforce and building rental lease consolidations. 3.14 Book vs. Cash Tax Schedule and Section 382 Net Operating Losses (Length: 32:24) In this lesson, you’ll learn how to calculate the allowable NOL usage each year, and how to reconcile book amortization and depreciation with tax amortization and depreciation to determine the difference between cash taxes and book taxes, and the deferred tax liability change each year. 3.15 Accretion / Dilution & Breakeven Synergies Calculation (Video Length: 19:40) In this lesson, we’ll finishing linking together the tax schedule and the purchase price allocation / balance sheet adjustments and then calculate GAAP and Pro-Forma EPS, as well as the break-even synergies required for the deal to be neutral to Microsoft’s EPS. 3.16 Projecting the Combined Balance Sheets (Video Length: 20:57) In this lesson, you’ll learn how to project the combined Balance Sheet for Microsoft-Yahoo posttransaction, and which items we can add in directly vs. which we have to modify based on the transaction adjustments. 3.17 Projecting the Combined Cash Flow Statements (Video Length: 26:38) In this lesson, you’ll learn how to combine Microsoft and Yahoo!’s Cash Flow Statements – and which items we can simply add together, which we have to modify, and which we ignore altogether. 3.18 Debt Schedules & Interest Expense Calculation (Video Length: 23:46) In this lesson, we’ll create debt schedules to track the interest expense and principal repayment on new debt Microsoft raises in the deal.


3.19 Linking the Combined 3 Statements (Video Length: 15:50) In this lesson, we’ll learn how to fully complete our combined 3-statement merger model for Microsoft and Yahoo! and how to link together the final items. 3.20 Sensitivity Analyses (Video Length: 25:07) In this lesson, you’ll learn how to pick the appropriate variables to analyze in sensitivity tables for this merger model, as well as how to fix problems when the tables do not calculate correctly. 3.21 Contribution Analysis (Length: 27:24) In this video, you’ll learn how to create a contribution analysis for Microsoft and Yahoo! that determines what percent of the combined company each one should own based on their revenue, EBITDA, and pretax income contributions. 3.22 Transaction Summary (Length: 18:51) In this final lesson, we’ll create a transaction summary page that shows Yahoo!’s current valuation multiples and compares them to the valuation implied by Microsoft’s offer.

Module 4: Advanced Financial Modeling: Yahoo! LBO Model In this course, you'll learn how to create a detailed LBO model for a hypothetical buyout of Yahoo! by large-cap private equity firms such as KKR and Blackstone. We'll look at how to modify our 3-statement model to support an LBO, and then go into more advanced topics like multiple debt tranches, PIK vs. cash interest, a complex debt schedule with mandatory and optional repayments, tax implications, asset write-ups, balance sheet adjustments, and dividend recaps. In addition, we'll also give you a crash course on the different types of debt and how to use each of them in an LBO model.


Types of Debt & Debt Lingo – Quick Reference Guide Software & Services High-Yield Debt Comparables

4.1 Overview (Video Length: 12:07) In this lesson, you’ll learn the key adjustments and additions we’ll make to our 3-statement model to create an LBO model for Yahoo! – and you’ll understand the key challenges in creating this type of model.


4.2 Debt Crash Course (Video Length: 43:48) In this video, you’ll learn why we need to use multiple tranches of debt in an LBO and the key differences between each type of debt in terms of tenor, interest rates, repayment options, and more – and you’ll get a preview of how we actually use debt in an LBO model. 4.3 Changes to Operating Model (Video Length: 16:43) In this lesson, you’ll learn about the key modifications we need to make to our existing standalone operating model for Yahoo! to turn it into an LBO model instead. 4.4 Transaction & Operating Assumptions (Video Length: 22:15) In this lesson, you’ll learn the key transaction and operating assumptions we need to make in our LBO model – including the purchase price, debt refinancing, recap, and rollover options, and exit scenarios. 4.5 Capital Structure Scenarios (Video Length: 21:43) In this lesson, we’ll set up different financing scenarios for the leveraged buyout of Yahoo!, using 7 tranches of debt as well as rollover, assumption of minority interest and debt, and excess cash financing options. 4.6 Debt Assumptions (Video Length: 24:17) In this lesson, we’ll make key assumptions for the interest rates, yearly amortization percentages, prepayment options, maturity, and PIK years for each tranche of debt. 4.7 Transaction & Financing Fees (Video Length: 21:13) In this video, we’ll create a transaction and financing fee amortization schedule showing how the fees associated with debt financing are paid off over time. 4.8 Sources & Uses (Video Length: 15:36) In this video, we’ll create a summary Sources & Uses schedule that shows how the LBO is financed, what the funds are being used for, and the key features of each debt tranche. 4.9 Purchase Price Allocation, Goodwill & Asset Write-Ups (Video Length: 14:40) In this video, you’ll learn how to modify the purchase price allocation schedule from our merger model and apply it to an LBO model instead – and how to set up fixed and intangible asset write-ups and goodwill creation for book and tax purposes. 4.10 Pro-Forma Balance Sheet Adjustments (Video Length: 41:56) In this lesson, we’ll adjust Yahoo’s Balance Sheet for both the initial LBO transaction as well as for a possible dividend recapitalization 3 years after the initial LBO takes place.


4.11 Debt Schedules – Interest Expense Calculation (Video Length: 17:46) In this video, we’ll begin creating the debt schedules by calculating the yearly interest expense for each tranche of debt, and then factoring in the undrawn revolver commitment fee and preferred stock dividends. 4.12 Debt Schedules – Mandatory Repayments (Video Length: 17:38) In this lesson, we’ll calculate the annual mandatory repayment for each tranche of debt, and show you how to draw on the revolver when Yahoo’s cash flow is not sufficient to repay its required debt obligations. 4.13 Debt Schedules – Optional Repayments (Video Length: 17:04) This lesson will teach you how to calculate the yearly optional repayment for each tranche of debt, taking into Yahoo’s cash flow and what it has already paid off each year. 4.14 Linking Debt on the Balance Sheet and Cash Flow Statement (Video Length: 23:38) In this lesson, we’ll properly link our debt schedules to the Balance Sheet and Cash Flow Statement, taking into account PIK options as well as mandatory and optional repayments. 4.15 Modifying the Income Statement for LBO Adjustments (Video Length: 20:42) This video will teach you how to modify Yahoo’s income statement to take into account the acquisition effects, cost savings, sponsor management fee, new interest expense, and common and preferred dividends. 4.16 Book vs. Cash Tax and NOL Schedule & Deferred Tax Liabilities (Video Length: 21:45) You’ll learn how to modify our book vs. cash tax, NOL and deferred tax liability schedule from the advanced merger model to handle negative pre-tax income as well as the creation of new NOLs in this lesson. 4.17 Summary Credit Statistics & Leverage and Coverage Ratios (Video Length: 28:27) You’ll learn how to analyze Yahoo’s credit profile in this video, as well as the key statistics and leverage and coverage ratios that lenders would look at before financing such a transaction. 4.18 IRR Calculations – Calculating Equity Value Available to Investors (Length: 20:34) In this lesson, we’ll begin our IRR calculations by calculating shares outstanding pre and post-transaction and determining how much equity value is available to all parties with ownership stakes in Yahoo. 4.19 IRR Calculations – Calculating Returns to Equity & Debt Investors (Length: 25:40)


In this lesson, we’ll calculate returns to equity and debt investors in the leveraged buyout of Yahoo, building into the model the possibility of different exit years as well as returns from the dividend recap and debt principal repayment. 4.20 Sensitivity Tables (Video Length: 23:07) In this video, we’ll take a closer look at why the “numbers don’t work” for this LBO – and how we can potentially improve returns to the private equity firm by modifying the purchase price, exit multiple, and leverage ratio via sensitivity analyses.

Module 5: Advanced Financial Modeling: Deal Commentary & Pitch Book In this course, you'll learn all about the history behind Microsoft's proposed transaction of Yahoo and what impact it would have had on the industry. We'll also look at a sample pitch book that bankers would have used to present the deal to Yahoo's Board of Directors, and go through the contents of the presentation as well as a PowerPoint tutorial on how to create such a pitch book. Finally, we'll conclude with sample interview questions and answers you might receive on this case study and give you Excel printouts you can bring with you to interviews.

Files & Resources: • • •

Microsoft / Yahoo! Sample Pitch Book PowerPoint Shortcuts – Quick Reference Guide Interview-Ready Modeling Printouts

5.1 Microsoft / Yahoo Deal Commentary (Video Length: 26:01) In this lesson, you’ll learn about the historical context behind Microsoft’s offer for Yahoo, why they made the offer they did, and what would have happened had the deal actually gone through. 5.2 Microsoft / Yahoo Sample Pitch Book (Video Length: 21:42) In this tutorial, you’ll see an example of a pitch book that bankers would have presented to Yahoo’s Board of Directors in response to Microsoft’s offer – and you’ll learn the key information that such a pitch book contains. 5.3 PowerPoint Crash Course (Video Length: 29:12) This lesson will give you a crash-course in how to use PowerPoint and the key shortcuts you need to know to create a pitch book – as well as how to paste in objects from Excel and properly format them.


5.4 How to Impress In an Interview (Video Length: 41:35) In this lesson, you’ll learn which points you should emphasize when you bring up this case study in an interview – and you’ll get formatted Excel files that you can print out and bring with you to prove your knowledge of financial modeling. 5.5 Interview Questions & Answers (Video Length: 37:01) In this lesson, you’ll learn the types of questions you might get on this case study in interviews, as well as how to answer them appropriately and the key points you want to mention.

Plus: BONUS Case Studies In addition to everything outlined above, you get another special bonus when you sign up for Breaking Into Wall Street: additional case studies on real M&A and LBO deals, plus stock pitches and valuations.


Note that these are included ONLY if you sign up for a package that includes the Fundamentals or Advanced courses – if you just sign up for the Excel course, they will not be included. So as long as you sign up for the Excel & Fundamentals option, the Advanced Modeling option, or the BIWS Premium option, you receive these case studies. They are NOT included with the Excel course by itself, but they ARE included with all other sign-up options. These case studies give you additional practice for time-pressured investment banking, private equity, hedge fund, and equity research case studies – and they cover topics that are not currently featured in the main courses. Here’s the full outline:

Module 1: Valuation Bonus Case Studies You'll learn about valuation, the DCF analysis, and how to select public comps and precedent transactions for companies, deals, and potential investments in different industries in this set of bonus case studies.

Files & Resources: • • • • • •

ConAgra Valuation – Excel Files Ralcorp / ConAgra Bid – Case Study Presentation Actavis DCF – Excel Files Mylan and Agila DCF – Excel Files Mylan Stock Pitch Outline – Word Document Mylan / Actavis Valuation Quiz – 28 Questions and Answers

1.1 Valuation Case Study: ConAgra’s $4.9 Billion Bid for Ralcorp (Video Length: 54:38) You’ll learn how to value Ralcorp, a company in the packaged foods industry, in this case study – as well as additional details on calendarization and completing a DCF analysis. You’ll come to a conclusion about whether or not the price ConAgra offered for Ralcorp was reasonable as well. 1.2 Mylan / Actavis Case Study, Part 1: Defining the DCF and Using It to Value Actavis (Video Length: 37:40) In this part of the case study, you’ll learn why a DCF is important, what it means, and how to calculate and project Free Cash Flow. You’ll also learn some common mistakes and questionable assumptions in the DCF via our analysis of a co-worker’s DCF for Actavis. 1.3 Mylan / Actavis Case Study, Part 2: How to Project FCF with an Acquisition (51:29) In this part of the case study, you’ll learn how to project FCF the right way for Mylan and how to factor in the impact of a major acquisition – plus, how to create sensitivity tables for different revenue growth rate, margin, and acquisition assumptions. 1.4 Mylan / Actavis Case Study, Part 3: How to Create a Stock Pitch for Mylan (34:57)


In this part of the case study, you’ll learn how to project FCF the right way for Mylan and how to factor in the impact of a major acquisition – plus, how to create sensitivity tables for different revenue growth rate, margin, and acquisition assumptions. 1.5 DCF Quiz – Mylan / Actavis Valuation and Stock Pitch Case Study (Quiz) You’ll test your knowledge of the DCF analysis and the Mylan / Actavis stock pitch and case study in this quiz. There are 31 points available, and you’ll see your score at the end when you complete all the questions.

Module 2: Merger Model Bonus Case Studies You'll learn how to build merger models to analyze the impact of M&A deals, and even look back on historical results compared to what we predicted, in this set of bonus case studies.

Files & Resources: • • • • • • •

Intel / McAfee – Merger Model – Excel Files Intel / McAfee – Merger Model – Case Study Presentation Intel / McAfee – More Advanced Merger Model – Excel Files Intel / McAfee – More Advanced Merger Model – Case Study Presentation and Follow-Up Q&A United / Goodrich – More Advanced Merger Model – Excel Files United / Goodrich – More Advanced Merger Model – Case Study Presentation and Follow-Up Q&A Purchase Price Allocation Cheat Sheet – Quick Reference Guide

2.1 Intel / McAfee Merger Model, Part 1 – Basic Analysis (Video Length: 36:00) In this case study, you’ll learn how to gather the data for a major M&A deal: Intel’s $8 billion acquisition of McAfee. If you’re new to M&A analysis and merger models, this case study will be good practice for learning the fundamentals. 2.2 Intel / McAfee Merger Model, Part 2 – More Advanced Analysis (Video Length: 50:38) In this case study, you’ll learn about some of the more advanced aspects of the Intel / McAfee deal, including purchase price allocation, scenarios, and how to calculate revenue and expense synergies based on real data. 2.3 United / Goodrich Merger Model – More Advanced Analysis (Video Length: 56:14) You’ll analyze United’s $16 billion acquisition of Goodrich in this case study, a major M&A deal in the aerospace & defense industry – and you’ll learn more about purchase price allocation, deferred taxes, scenarios, and revenue and expense synergies in the process. We’ll also look back at what happened in real life 1 year after the deal and compare the numbers to our predictions.


Module 3: LBO Model Bonus Case Studies In this set of bonus case studies, you'll get practice with LBO models of all different types and complexity levels, ranging from basic to advanced - and you'll learn how to present your findings and make investment recommendations in private equity and other buy-side interviews.

Files & Resources: • • • • • • • •

Apax Partners / Kinetic Concepts – LBO Model – Excel Files Apax Partners / Kinetic Concepts – LBO Model – Case Study Presentation and Follow-Up Q&A TPG / J Crew – More Advanced LBO Model – Excel Files TPG / J Crew – More Advanced LBO Model – Case Study Presentation and Follow-Up Q&A TPG / J Crew – More Advanced LBO Model – Quick Reference Guide Best Buy – Even More Advanced LBO Model – Excel Files Best Buy – Even More Advanced LBO Model – Case Study Presentation Best Buy – Even More Advanced LBO Model – Investment Recommendation Presentation

3.1 Apax Partners’ $6.3 Billion Leveraged Buyout of Kinetic Concepts (Quick LBO) (Video Length: 43:45) You’ll get practice with a “quick LBO model” in this lesson, and you’ll complete a real private equity interview case study by filling out the assumptions and required spreadsheet, checking your work against our answers, and answering the case study questions and making an investment recommendation at the end. 3.2 TPG’s $3 Billion Leveraged Buyout of J Crew (More Advanced LBO) (Video Length: 57:10) In this case study, you’ll practice building a more advanced LBO model, as you would in a real private equity interview, and then making an investment recommendation at the end on J Crew (which TPG bought out for over $3 billion). Then, you’ll take a look back and do a “post-mortem” analysis of different aspects of the deal. 3.3 Best Buy’s Potential $11 Billion Leveraged Buyout (Even More Advanced LBO) (Video Length: 1:33:35) In this case study, we’ll tackle an even more advanced LBO model for Best Buy, and build in options for different ownership percentages, revenue/expense scenarios, refinanced debt and excess cash funding, and more – and you’ll create a 20-slide investment recommendation at the end, covering both qualitative and quantitative factors.



Module 4: Silver Lake / Dell Leveraged Buyout (LBO) – Extended Case Study In this case study, you’ll analyze Silver Lake Partners’ $24 billion leveraged buyout of Dell, one of the top 15 biggest LBOs on record. The deal represented an aggressive bet on Dell’s ability to turn itself around and move away from its declining desktop PC and notebook businesses and re-orient itself toward software, services, and possibly tablets. In addition to the challenges of turning around a $50+ billion revenue company like this, the deal also stood out for the following reasons: •

A key strategic partner of Dell, Microsoft, also participated in the deal via a $2 billion subordinated loan – it is highly unusual for strategic partners to invest in the capital structure of partner companies that are being taken private.

•

Michael Dell, the Founder, already owned 15% of the company and planned to retain his stake – so this was a leveraged buyout for 85% of the company rather than 100% of it.

•

The deal immediately sparked controversy, with a letter from Southeastern Asset Management, one of the company’s largest shareholders, arriving several days afterward and announcing the firm’s intent to vote against the deal because they believed that Dell was worth at least $24.00 per share rather than the $13.65 per share that Silver Lake offered.

•

The company has many different business lines, some of which are declining (desktops and notebooks), and others that are growing quickly (servers and networking); as such, you’ll need to consider different revenue and expense scenarios on a segment-by-segment basis.

•

Finally, the company is unlikely to turn itself around strictly from organic growth, so acquisitions must factor into this deal. You’ll need to analyze potential post-buyout acquisitions and determine what margin and growth profiles would be required for Silver Lake to realize an acceptable IRR

Files & Resources: • • • •

Silver Lake / Dell – Advanced LBO Model – Excel Files Silver Lake / Dell – Advanced LBO Model – Case Study Presentation Silver Lake / Dell – Advanced LBO Model – Investment Recommendation Presentation Silver Lake / Dell – Advanced LBO Model Quiz – 71 Questions and Answers

4.1 Overview and Recommended Approach (Video Length: 12:58) In this lesson, you’ll get an overview of the entire Dell LBO case study and you’ll learn about our recommended approach to tackling each part of the exercise.


4.2 Gathering Historical Data and Market Research (Video Length: 18:30) You’ll learn how to gather historical data and find market research in this lesson, as well as where you can get free equity research online. 4.3 Transaction Assumptions (Video Length: 24:57) In this lesson, you’ll learn how to set up key transaction assumptions for the deal – including how to calculate funds required and set up switches for repatriated cash and the Founder rollover. 4.4 Debt Assumptions (Video Length: 17:01) In this lesson, you’ll learn how to find key terms of the debt financing used in the buyout from the actual merger agreement that was filed – and you’ll learn how to simplify and use guesstimates for some items when numbers do not exist. 4.5 Sources & Uses (Video Length: 15:19) You’ll learn how to set up a Sources & Uses schedule that factors in repatriated cash, the Founder rollover, an additional Founder cash contribution, excess cash, and multiple tranches of debt, with a refinancing option, in this lesson. 4.6 Purchase Price Allocation (Video Length: 10:47) In this lesson, you’ll learn how to allocate the purchase price and factor in write-ups and write-downs of key line items to calculate Goodwill. 4.7 Revenue Model, Part 1 – Servers & Networking, Desktops, and Laptops (Video Length: 30:33) You’ll learn how to project revenue in 3 of Dell’s main segments in this lesson, based on industry research, channel checks, historical numbers, and analyst consensus estimates. 4.8 Revenue Model, Part 2 – Services, Software, and Storage (Video Length: 23:11) In this lesson, you’ll learn how to create revenue scenarios for Dell’s 3 other segments and what you can do when you have limited information available for certain business lines. 4.9 Expense Scenarios (Video Length: 11:48) You’ll learn how to project Dell’s future gross margins and operating margins in this lesson, and why the lack of a detailed breakout by operating segment creates challenges for us in the case study. 4.10 Income Statement Projections and Checking Estimates Across All Scenarios (Video Length: 25:20) You will learn how to project the Income Statement in this lesson, and how to check all your revenue and expense projections against estimates from different sources.


4.11 Balance Sheet Projections (Video Length: 39:34) In this lesson, you’ll project Dell’s Balance Sheet and you’ll learn which items should be linked to Income Statement line items and which ones should be projected independently. 4.12 Cash Flow Statement Projections (Video Length: 22:15) You’ll learn how to project Dell’s Cash Flow Statement in this lesson, including which items to project and which ones to set to $0 – and you’ll see how you can check your work at the end. 4.13 Combining and Adjusting the Balance Sheet (Video Length: 26:02) You will learn how to adjust Dell’s Balance Sheet for the leveraged buyout in this lesson, including how to link in the other statements and how to reflect the repatriated cash, debt refinancing (or assumption), and Founder equity rollover. 4.14 Debt Schedules – Mandatory Repayments (Video Length: 14:29) In this lesson, you’ll learn how to enter mandatory debt repayment formulas for Dell, taking into account existing debt that has not yet been refinanced as well as new debt added in the LBO. 4.15 Debt Schedules – Optional Repayments (Video Length: 20:34) You’ll learn how to set up the optional debt repayment formulas for the Dell LBO in this lesson, including how to handle all cases – from debt refinancing to assumption to different tranches and drawn and undrawn Revolvers. 4.16 Debt Schedules – Linking to the Financial Statements (Video Length: 5:52) In this lesson, you’ll learn how to link the debt schedules to the cash flow statement and balance sheet to properly reflect debt issuances and repayments. 4.17 Debt Schedules – Interest Expense (Video Length: 14:53) You will learn how to calculate the interest expense and link it to the Income Statement in this lesson, including support for circular references and the LIBOR floor for each tranche of debt. 4.18 Post-Buyout Add-On Acquisitions – Data Gathering (Video Length: 25:34) In this lesson, you’ll learn where you should look for information on Dell’s past acquisitions so that you can estimate the impact of post-buyout acquisitions in future years. 4.19 Post-Buyout Add-On Acquisitions – Purchase Assumptions (Video Length: 13:29) You’ll learn how to make the key assumptions that will drive the post-buyout acquisition treatment for Dell in this lesson. 4.20 Post-Buyout Add-On Acquisitions – Adjusting the Income Statement (Video Length: 27:29)


You’ll learn how to modify the Income Statement for the post-buyout add-on acquisitions in this lesson, including how to change some of the key BS and CFS drivers as well. 4.21 Post-Buyout Add-On Acquisitions – Adjusting the Balance Sheet (Video Length: 39:15) You’ll learn how to adjust Dell’s Balance Sheet for the additional debt and equity raised in the add-on acquisitions in this lesson, as well as how to re-link many of the items properly. 4.22 Post-Buyout Add-On Acquisitions – Adjusting the CFS and Debt Schedules (Video Length: 29:11) In this lesson, you’ll learn how to adjust the CFS and debt schedules for the debt and equity raised to support the post-buyout acquisitions, as well as the other effects of those acquisitions. 4.23 Calculating IRR and Creating Sensitivity Tables (Video Length: 42:36) You’ll learn how to calculate the IRR, taking into account the Founder rollover and other deal features, in this lesson – plus, you’ll learn how to interpret the output of the different sensitivity tables we create. 4.24 Private Equity Case Study Presentation and Investment Recommendation (Video Length: 36:57) In this lesson, you’ll learn how to structure an investment recommendation for use in a private equity interview, and you’ll understand how to incorporate all our analysis into the slides and investment thesis we present. 4.25 Dell Case Study Quiz – 71 Questions & Answers You’ll test your knowledge on all aspects of the Silver Lake / Dell case study in this quiz, including the model setup, assumptions, revenue and expense projections, transaction adjustments, debt schedules, post-buyout acquisitions, and investment recommendation. There are 71 points available, and you’ll see your score at the end when you complete all the questions.

Plus ALL Future Updates, Free This outline covers what’s in “Version 2.0” of Breaking Into Wall Street. And by themselves, these 21 modules and case study bonuses already cover much more than you’d get in programs priced at well over $1,000. But this is just the beginning. Because this is a membership site where you get lifetime access once you sign up, you’ll get FREE access to all new lessons and updates as soon as they’re uploaded. As we get requests to add lessons on additional and more advanced topics, we can do that in real-time – and if you sign up now, you’ll get access to everything. You already know about the Advanced Modeling Case Study on the Microsoft / Yahoo deal, the Excel tutorials based on the case study of Wal-Mart, and the case study of Apple and Research in Motion – but that’s just the tip of the iceberg.


So when we add in material on private companies, IPOs, convertibles, additional practice exercises, and even how to pitch additional investment ideas using financial models in hedge fund / asset management and equity research interviews, you’ll get all that for free as well. Over time, this package of courses will only get better and better. Quick Note: Just to make sure there’s no confusion here – you receive updates within the courses above for free. However, if we create a completely new course – such as distressed & restructuring modeling – that would be separate and you would have to sign up separately. However, once you become a member of the site you’ll receive special offers and discounts on all new financial modeling courses so you’re always assured of a great deal. In addition to that discount on new courses, you also receive special discounts on existing courses and guides on the site, such as the Interview Guide and Networking Toolkit.

Included Expert Support and Your Questions… Answered You don’t just get tons of videos, Excel files, and quick reference guides with this course. You also get to ask questions on anything you don’t understand – whether it’s an entire course, just one lesson, or just one sentence of one question. We have a team (you can read more about everyone here) who is on call to answer questions 365 days per year – and you can access all previous questions and answers from the thousands who have already signed up for the courses. You’re looking at accessing not only years of wisdom and questions and answers all in one spot, but also the ability to get new answers on anything you need – even if it’s Christmas or New Year’s Day. Some of our lessons have dozens (or hundreds) of questions and answers, and more are being added every day (see the screenshot above). I no longer even offer 1-on-1 consulting, and the last time I did offer it, the price was $300+ per hour. And even when you had hired me for a session, you couldn’t ask questions 24/7 and receive responses on any topic you could think of – our time was limited to the session itself.


This support function and the superb community of Breaking Into Wall Street mean that you get an even better deal – it’s like getting a detailed guide, hiring a seasoned coach to answer your questions, and getting to access the experience of thousands of previous and current students.

What’s Your Investment In This Course? And What Are Your Alternatives? To put this in context, let’s look at your Return on Investment in this Course… The pay for entry-level investment banking jobs varies from year to year, but it's safe to say that even entry-level Analysts would make at least $100,000+ USD right out of university. At the MBA level, that climbs to $200,000 USD. And as you progress, your total compensation only gets higher and higher. Compared with the potential upside, your investment in this Course is nominal: Your investment in the full BIWS Premium course (including ALL of the valuable content and training detailed above) is just $497. You can also invest in either component separately:  

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So in other words, by investing just $497 in the BIWS Premium course, you're greatly improving your chances of landing a job that pays $100,000 in Year 1 – that's more than a 200x return on investment! Even if this training only helps you to land an internship, you're still looking at a minimum of $10,000 for that internship at a large bank – an ROI of more than 20x. Plenty of other training firms charge much more for less content and value – and in some cases, for courses that aren’t even designed specifically for online learning. Let’s look at a few examples:   

Wall Street Training: $3,050 Training the Street: $600 Wall Street Prep Premium: $499

Now, if I were a banker valuing a company that was “out-performing” its competitors, I might say that it should be valued at a premium to the comps. I could have just said, “Well, this course is better than anything else out there in terms of content, support, and value, so it should be the most expensive on the market.” But I would much rather offer these Courses at a very affordable price… and put them within reach of anyone at all who is serious about breaking into and advancing within the finance industry.


Plus, You’re Covered By Our No-Questions-Asked Unconditional Guarantee – Making This 100% Risk-Free Just like every one of the BIWS courses, this comes with our unconditional 12-month money back guarantee. That’s right – take a full 12 months to evaluate everything inside the course, and if you’re not 100% satisfied, simply contact us via the “Contact” link displayed on every page of the site and ask for your money back. You’ll receive a prompt and courteous refund. There are no strings attached, no special terms or conditions, and no fine print.

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Click Here to Sign Up Now for BIWS Premium ($497) – BEST DEAL, Save $97 Click Here to Sign Up Now for Advanced Financial Modeling ($347) Click Here to Sign Up Now for Excel & Financial Modeling Fundamentals ($247) Best Regards, Brian DeChesare Mergers & Inquisitions | Breaking Into Wall Street P.S. Breaking Into Wall Street courses offer the most comprehensive training available, with the best support, the best user community, and the best guarantee. At last count, over 22,981 students and finance professionals have taken our courses. Why not join them? I look forward to welcoming you as our newest member, and wish you success in investment banking and finance.
