Finance Modeling Course

Lesson 1 • What Financial Models Do

Defines financial models, their business purpose, and common use cases. Establishes the mental framework that guides every subsequent modeling decision.

Lesson 2 • Model Architecture and Layout

Covers structural principles: input separation, calculation flow, and output design. Students apply these principles to build a clean, auditable skeleton model.

Lesson 3 • Core Excel Functions for Finance

Covers lookup, logical, date, and math functions used in financial models. Students practice each function in realistic financial data contexts.

Lesson 4 • Excel Efficiency for Modelers

Teaches keyboard shortcuts, named ranges, and formula auditing tools. Directly reduces build time and error rates in all subsequent modeling work.

Lesson 1 • Cost and Expense Forecasting

Separates fixed, variable, and semi-variable costs and links each to appropriate drivers. Students produce a cost model that responds dynamically to revenue changes.

Lesson 2 • Working Capital and Capex Forecasting

Projects working capital using days-based ratios and capex using maintenance and growth splits. Connects operational assumptions directly to cash flow forecasts.

Lesson 3 • Revenue Forecasting Methods

Covers volume-price, market-share, and contract-based revenue models. Students build a revenue forecast using at least two complementary methods.

Lesson 4 • Assumption Documentation and Governance

Establishes a structured assumption log with sources, owners, and review dates. Ensures forecasts remain auditable and updatable as business conditions change.

Lesson 1 • Balance Sheet Modeling

Covers working capital, fixed assets, debt, and equity schedules. Each line item links to income statement outputs or dedicated supporting schedules.

Lesson 2 • Cash Flow Statement Construction

Derives the cash flow statement from the income statement and balance sheet using the indirect method. Students verify the model balances end-to-end.

Lesson 3 • Supporting Schedules

Builds depreciation, amortization, and debt schedules that feed the three statements. Reinforces the discipline of modular, auditable sub-models.

Lesson 4 • Model Integration and Integrity Checks

Links all three statements and supporting schedules into a single coherent model. Students run integrity checks to confirm mathematical and logical consistency.

Lesson 1 • Free Cash Flow Derivation

Defines and calculates unlevered free cash flow from the three-statement model. Students reconcile FCF to operating cash flow and understand each adjustment.

Lesson 2 • Terminal Value Methods

Compares the perpetuity growth model and exit multiple approaches to terminal value. Students calculate both and assess which is more appropriate for a given business.

Lesson 3 • DCF Sensitivity and Scenario Analysis

Builds data tables and scenario toggles to stress-test DCF outputs across key assumptions. Students interpret results and communicate valuation ranges to stakeholders.

Lesson 4 • Enterprise to Equity Value Bridge

Converts enterprise value to equity value per share using the net debt bridge. Students apply the bridge to derive an implied share price from their DCF.

Lesson 1 • Valuation Multiples Framework

Explains enterprise value and equity value multiples, their numerators, and denominators. Students understand which multiples apply to which business types.

Lesson 2 • Triangulating Valuation Outputs

Combines DCF, trading comps, and transaction comps into a football field chart. Students practice selecting and defending a point estimate or range.

Lesson 3 • Precedent Transaction Analysis

Covers deal screening, control premium identification, and transaction multiple calculation. Students build a transaction comps table and compare it to trading comps.

Lesson 4 • Normalizing Financial Metrics

Adjusts reported financials for one-time items, accounting differences, and fiscal year mismatches. Ensures multiples are calculated on a like-for-like basis.

Lesson 1 • Pro Forma Income Statement

Combines acquirer and target income statements with synergy and cost adjustments. Students build a pro forma model that reflects the post-close combined entity.

Lesson 2 • Contribution and Merger Consequences

Analyzes each party's relative contribution to the combined entity and implied exchange ratios. Students assess deal fairness from both acquirer and target perspectives.

Lesson 3 • Accretion and Dilution Analysis

Calculates the impact of the deal on acquirer earnings per share. Students determine the breakeven synergy level required for the deal to be accretive.

Lesson 4 • M&A Deal Structure Fundamentals

Covers cash, stock, and mixed consideration structures and their accounting implications. Students understand how deal structure affects the combined entity's financials.

Lesson 1 • LBO Structure and Economics

Explains the mechanics of a leveraged buyout, including sources and uses of funds. Students map how debt, equity, and purchase price interact to create returns.

Lesson 2 • Credit Metrics and Covenant Analysis

Tracks leverage ratio, interest coverage, and debt-to-EBITDA through the holding period. Students assess whether the capital structure remains viable under stress.

Lesson 3 • Debt Schedule and Cash Sweep

Models mandatory amortization, revolving credit, and optional cash sweep mechanics. Students see how free cash flow reduces debt and affects equity returns.

Lesson 4 • Exit Assumptions and Returns

Calculates IRR and MOIC at various exit multiples and holding periods. Students build a returns matrix and identify the key value creation levers.

Lesson 1 • Scenario and Sensitivity Management

Builds a centralized scenario manager that updates the entire model from a single input sheet. Students create named scenarios and automate sensitivity output tables.

Lesson 2 • Dynamic Model Architecture

Introduces toggle switches, dynamic labels, and flexible time-period structures. Students redesign an existing model to handle variable inputs without structural changes.

Lesson 3 • Model Audit and Quality Assurance

Applies a structured QA process including peer review, formula consistency checks, and stress tests. Students use a model audit checklist to certify model readiness.

Lesson 4 • Presenting Models to Stakeholders

Covers how to walk stakeholders through a model, handle questions, and communicate uncertainty. Students practice a live model walkthrough with structured feedback.