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A Simple Model
United States
Приєднався 5 сер 2013
The objective at ASimpleModel.com is to make financial modeling instruction and private equity training accessible and affordable. The financial modeling curriculum focuses on the three most important models for any entry-level position: the three statement model, the DCF model and the LBO model. The Private Equity Curriculum goes beyond the LBO model to explain how professionals source, structure and close transactions.
Private Equity Training: www.asimplemodel.com/PrivateEquity
Private Equity Training: www.asimplemodel.com/PrivateEquity
Private Equity Roll Up Industry Considerations
What makes an industry ripe for a private equity roll-up strategy? This video explores attractive industry characteristics for consolidation.
Private Equity Roll Up Excel Template:
www.asimplemodel.com/insights/private-equity-roll-up
Private Equity Roll Up Industry Considerations:
www.asimplemodel.com/insights/private-equity-roll-up-industry-considerations
Private Equity Roll Up Firm Considerations:
www.asimplemodel.com/insights/private-equity-roll-up-strategy-firm-considerations
Private Equity Roll Up Excel Template:
www.asimplemodel.com/insights/private-equity-roll-up
Private Equity Roll Up Industry Considerations:
www.asimplemodel.com/insights/private-equity-roll-up-industry-considerations
Private Equity Roll Up Firm Considerations:
www.asimplemodel.com/insights/private-equity-roll-up-strategy-firm-considerations
Переглядів: 725
Відео
Financial Statements Quiz
Переглядів 4772 місяці тому
Test your knowledge of the three primary financial statements with this handwritten quiz. The three financial statements are the income statement, the balance sheet, and the cash flow statement. In the video series available on ASM, the financial statements are introduced in the context of building a three-statement model, which provides the foundation for most in-depth financial analysis and v...
Introduction to Financial Statements Course
Переглядів 5372 місяці тому
What’s the most important thing to know as a financial analyst or investor? In my opinion, it’s the three-statement model framework and how cash moves through it. And that is precisely what this course is focused on. The three financial statements are the income statement, the balance sheet, and the cash flow statement. In the video series available on ASM, the financial statements are introduc...
The Income Statement Explained
Переглядів 9566 місяців тому
How do you know if a company is good at what it does? And how do you know if the Company is getting better or worse over time? Well, if a company’s objective is to sell goods and services at a profit, then the income statement will tell you if it’s succeeding or failing. In this lesson we’ll be using our fictitious sailboat company to explore the income statement in detail by addressing the top...
Negotiating Equity without Private Equity Experience
Переглядів 1,3 тис.7 місяців тому
How can I negotiate an equity position when you don't have a private equity background? This is a question I receive frequently from ASM subscribers and people working at private companies. This video is intended more for lower middle market businesses, but I believe the advice applies for much larger businesses. Generally, with the latter, there may be a lot more structure that surrounds the p...
Vista Equity Partners: Adding Value at Scale
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Vista Equity Partners: Adding Value at Scale
Why Does a Private Equity Fund have a GP and a Management Company
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Why Does a Private Equity Fund have a GP and a Management Company
Want to Invest in Private Equity? You're Not Alone
Переглядів 1,5 тис.Рік тому
Want to Invest in Private Equity? You're Not Alone
Robinhood Stock and Cash on the Balance Sheet
Переглядів 727Рік тому
Robinhood Stock and Cash on the Balance Sheet
Independent Sponsor Acquisition: EggCartons.com
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Independent Sponsor Acquisition: EggCartons.com
Simple LBO: Primary Value Drivers in an LBO Model
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Simple LBO: Primary Value Drivers in an LBO Model
Simple LBO: A $100M Transaction Broken Down
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Simple LBO: A $100M Transaction Broken Down
Private Equity Profit for $500M Fund that Triples
Переглядів 4,7 тис.Рік тому
Private Equity Profit for $500M Fund that Triples
Private Equity Fund Wipeout: From $2 Billion to Zero #shorts
Переглядів 1,6 тис.Рік тому
Private Equity Fund Wipeout: From $2 Billion to Zero #shorts
The Working Capital Peg for a Seasonal Business
Переглядів 3,3 тис.2 роки тому
The Working Capital Peg for a Seasonal Business
The Definition of Working Capital in the Working Capital Peg
Переглядів 2,6 тис.2 роки тому
The Definition of Working Capital in the Working Capital Peg
Dynamic Excel Table Inputs Based on Cell Value
Переглядів 25 тис.2 роки тому
Dynamic Excel Table Inputs Based on Cell Value
Data Analysis in Excel: Introducing Excel Tables
Переглядів 9612 роки тому
Data Analysis in Excel: Introducing Excel Tables
Company Data Analysis in Excel: Course Introduction
Переглядів 9182 роки тому
Company Data Analysis in Excel: Course Introduction
How to Keep Company Control as an Independent Sponsor
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How to Keep Company Control as an Independent Sponsor
Interview: Starting a Contrarian Hedge Fund
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Interview: Starting a Contrarian Hedge Fund
Building a Business Development Role in Private Credit
Переглядів 3 тис.2 роки тому
Building a Business Development Role in Private Credit
Return Last Non-Empty Cell in a Row or Column in Excel
Переглядів 13 тис.2 роки тому
Return Last Non-Empty Cell in a Row or Column in Excel
LBO Returns Analysis: Measuring IRR and MOIC
Переглядів 12 тис.2 роки тому
LBO Returns Analysis: Measuring IRR and MOIC
Getting Started as an Independent Sponsor
Переглядів 4,2 тис.2 роки тому
Getting Started as an Independent Sponsor
Thank you. I’m realizing that the best way to growth is through acquisition.
Can this same approach be applied to real estate, as a debt fund using the property as collateral (non equity position)?
Thank you. I’m in an introductory class at a school and they don’t explain any of this as succinctly as you do.
Most appreciated! Thanks for the feedback!
This is well made
Thank you!
really informative
thanks!
Godzilla can appear in an instant 😂😂😂
you never know...
8:58 Don't understand why you just didn't multiply the sum of row 42 and row 47 by 20%... It still gives you the same number
Important to add some industries have corporate centers that benefit from scale. Rolling up car dealerships doesn’t have the same benefit as a dental practice that can share call centers, billing, marketing etc. Moreover, in some industries the entrepreneurial drive of the owner is required for success and consolidation destroys the operations. Great video and introduction.
Great comment, some roll ups benefit from stronger economies of scale certainly. Like your last point too, really emphasizes the significance of culture. Bradley Jacobs talks about it a lot in his new book How to Make a Few Billion Dollars.
Bradley Jacobs Short: ua-cam.com/users/shortsFIAj7dbs7BI
In calculating the catch up fees why you have included the capital invested $10Mn ?? Catch up fees is calculated on the profits beyond the hurdle?? So, step 1 return capital invested 10Mn / step 2 hurdle 20Mn profit x 8% hurdle = $1.6Mn / step 3 catch up fees 1.6mn / 80% x 20% = 0.4K / step 4 carry 18mn will be distributed 80/20. Appreciate to correct me if, as i got confused. Thanks
North korea tried to shot it with nuclear misle but missed
Hi, what is the porfolio fee range that the mgmt co charges the portfolio company?
"Hello humans"😂
This is exactly the video i wanted to refresh my memory
Glad it helped!
Similar to Dollar Shave Club, I would say "MANSCAPED" are also a great example. Before MANSCAPED, men would have a myriad of average choices with regards to manscaping products such as trimmers. MANSCAPED has absolutely blown most other players in this market, outta the water.
Interesting, thanks for sharing! Need to do some digging on that brand to better understand how they pulled it off.
@@ASimpleModel Great! Please do drop a reply of your analysis once you're done. Would love to hear your point of view on it.
In the long run though the arbitrage would collapse if the public market found out you are just issuing stock at a high multiple to buy a at a low multiple with no value add; eventually the two multiples would converge hence getting rid of the arbitrage. To keep a roll up going long term you need to add operational efficiencies to do a 1+1 = 3 model.
When a roll up works, the financial gain can be exceptional. That said, there are many poorly executed roll ups. Some studies even suggest that the majority fail to create value, and I think we are going to see many exposed at higher rates (no longer benefiting from persistently rising multiples year over year). Bain's most recent Global PE Report is a great read on this subject. We will also be posting more related articles on the Insights page if you have an interest. Most recent: www.asimplemodel.com/insights/private-equity-roll-up-industry-considerations
Hello I went on the link you provided and it is a different excel that is provided vs what was shown in the video
Maybe it's because I'm completely new to the world of PE, but honestly, I felt that your video to be substantially insightful. One minute into the video, I subscribed because it's rare to get such absolute to-the-point facts and insights without any bs. I came here because I was trying to find how can I start investing in the PE world here in the UK. I read Tony's book and he talks about PE investing as the first alternative investments. Glad I found your video. This is the first one I've seen, I'll now explore your channel. Thank you for taking the time to create this - I'm sure a lot of time has gone into adding so much alpha every single minute. Pure gold, many thanks, and best wishes, brother!
Thank you! Appreciate the kind words.
Could you give some advice for private credit modeling? I want to get in the field but wondering what kind of models they create and manage. LBO modeling would be enough for potential case study test?
We're working on more material for this topic. It will go live on the Insights page first as it becomes available. In the interim, we have a thorough LBO case study on the website as part of the ASM+ PRO tier.
Excellent summary of the science. I've read "Making it Stick" but was not aware of the Greek writing style and its rationale. I've have shared the video with the children 🙂 and added that the self-testing is why they may see their father walking around oblivious to his surroundings... he's trying to recall and work though new information.
No more spaces for me. Good stuff here.
THANKYOUFORCOMMENTING
Very logical for understanding and retention!
Thank you! I find the science of learning fascinating. Only wish I had studied it earlier in life :)
Fascinating. Isn’t an EBITDA multiple based on industry? Would this only be possible for companies that are looking to vertically integrate?
Great questions! EBITDA multiples vary by industry and within an industry by a company's size. This strategy is attractive because the market generally rewards scale with a higher valuation. More specifically, the market is generally willing to pay a higher multiple of EBITDA to acquire a larger business. This means that the sponsor (i.e., private equity firm or independent sponsor) behind the roll-up is likely to benefit from multiple arbitrage at exit. There are additional benefits to roll-ups including economies of scale and cross-selling, but multiple arbitrage is one of the strongest value drivers. You can read more about it here: www.asimplemodel.com/insights/private-equity-roll-up
Thank you for this
Thank you!
Spot on. Understand cash and how it flows through a business and you understand the blood flow of your investment
I’ve been wondering why Gstaad Guy’s videos were suddenly even better. I love his satire so much!
would complete your approach if you can show this scheme in term of share? and financial flux betwwen all those entities
Still adding value
Venture Capital funds typically don't have a preferred return; however, they do have catch up provisions. How does one calculate catch up without a preferred return?
Well said
You can also press alt w v g
Absolutely, I included it in the title of the video.
A million million
No, the earth is 7,000 years old
Thank you
awesome!!! Thank you for explaining
Do you ever blink? Good videos btw!
Actually, you do blink,when watched a second time
@@lejojose8033 i'll do a better job editing blinks next time :)
Is it possible to now the last value and also get the which qtr the value belongs to??
Wow, quite the pivot for Bill Haider to go from SNL, Barry to now financial tutorials!
Tried to get a job as Bill Hader's stunt double. But emotional stunts only. Like if he's getting yelled at in a scene. No dice. So financial tutorials it is... :)
If I am buying a base company and rolling up additional companies, can I do this all at once or is it better to do one at a time? And for the base company can you only put 20% down to start and have the rest as a balloon loan? Thank you for the help!!
This is great!! Love the examples and simplified breakdown.
I need to sum the first N values in the rows bellow a given reference, not considering the empty cells. For example, sum the first 10 valid (not empty) values in a column. Could you explain how to do that? would it be possible to use this formula just adding some other functions?
Lovely Sir, Thank you much❤❤❤
Honestly sounds like the next bubble. How is it not a pyramid scheme?
Is it safe to assume Independent Sponsors (GPs) and Managing Partners are the same?
is there anyway to do this formular without having it sorted into smallest to largest? ie just remove all blank cells and copy it into another table?
Please remove gridlines from my phone please remove redlines from my phone Please remove red lines from my phone It's not photos it's all over my phone 0:27
Thank you so much!!!! I was losing my mind scouring the internet to find a solution to this problem.
Hey Peter, can you also show us the calculation of dividend distribution among GP and LP
I don't see how you can only do this with debt?