Financial Modelling Course

Lesson 1 • What Financial Models Do

Defines financial models, their business purposes, and common types. Anchors all subsequent technical work in real-world decision-making context.

Lesson 2 • Spreadsheet Architecture Best Practices

Establishes structural conventions for professional models. Covers layout, color coding, and separation of inputs, calculations, and outputs.

Lesson 3 • Core Formula Toolkit

Introduces the essential formulas used across all financial models. Ensures fluency before more complex logic is introduced in later chapters.

Lesson 1 • Cash Flow Statement Construction

Covers direct and indirect methods for building cash flow statements. Links operating, investing, and financing activities to the balance sheet.

Lesson 2 • Income Statement Structure and Logic

Breaks down revenue, cost, and profit line items and their drivers. Provides the top-level starting point for all integrated model builds.

Lesson 3 • Balance Sheet Mechanics

Explains asset, liability, and equity classifications and their relationships. Establishes the accounting equation as a model integrity check.

Lesson 1 • Comparable Company Benchmarking

Uses peer group data to calibrate and validate internal forecasts. Anchors projections in observable market evidence rather than pure assumption.

Lesson 2 • Scenario and Sensitivity Frameworks

Structures base, upside, and downside cases around key forecast drivers. Enables rapid scenario switching without breaking model integrity.

Lesson 3 • Trend Analysis and Statistical Methods

Applies regression, moving averages, and growth decomposition to historical data. Produces statistically grounded baseline forecasts for stable businesses.

Lesson 1 • Defining Assumptions and Drivers

Identifies the key operating and financial assumptions that power the model. Separates hard-coded inputs from formula-driven projections systematically.

Lesson 2 • Closing the Cash Flow and Balancing

Completes the cash flow statement and resolves the circular debt-cash relationship. Delivers a fully balanced, dynamic integrated model.

Lesson 3 • Projecting the Balance Sheet

Constructs forward-looking balance sheet schedules tied to income statement outputs. Introduces working capital and fixed asset roll-forward schedules.

Lesson 1 • Valuation Synthesis and Presentation

Combines DCF, comps, and precedent outputs into a unified valuation range. Prepares clear, defensible valuation summaries for decision-makers.

Lesson 2 • Precedent Transaction Analysis

Extracts acquisition multiples from historical deal data to value a target. Highlights control premiums and deal-specific adjustments versus trading comps.

Lesson 3 • Comparable Company Analysis

Derives valuation multiples from a peer group to benchmark a target company. Teaches multiple selection, spread analysis, and implied value ranges.

Lesson 1 • Merger Model Framework

Introduces the structure and purpose of an M&A combination model. Covers the sequence of steps from standalone models to pro forma combined financials.

Lesson 2 • Synergy Modelling

Quantifies revenue and cost synergies and phases them into the combined model. Distinguishes achievable synergies from aspirational estimates with probability weighting.

Lesson 3 • Accretion and Dilution Analysis

Measures the impact of a deal on the acquirer's earnings per share. Evaluates how consideration mix and synergies shift the accretion/dilution outcome.

Lesson 1 • Debt Schedule and Cash Sweep

Models mandatory amortization, PIK interest, and optional cash sweep repayment. Demonstrates how debt paydown drives equity value creation over time.

Lesson 2 • Returns Analysis and Exit Scenarios

Calculates IRR and MOIC across multiple exit multiples and holding periods. Identifies the key value drivers and return sensitivities for the sponsor.

Lesson 3 • Operating Model Integration

Integrates the target company's three-statement model into the LBO framework. Ensures EBITDA, capex, and working capital flows feed debt service correctly.

Lesson 1 • Automation with Macros and VBA

Automates repetitive model tasks using recorded macros and basic VBA scripts. Reduces manual error and accelerates model refresh cycles significantly.

Lesson 2 • Model Review and Quality Assurance

Establishes a systematic QA process for reviewing models before delivery. Covers peer review protocols, stress testing, and documentation standards.

Lesson 3 • Presenting Model Outputs to Stakeholders

Translates model findings into structured narratives for non-technical audiences. Covers slide design, verbal delivery, and handling challenging questions.

Lesson 4 • Executive Dashboard Design

Translates complex model outputs into concise, visually compelling dashboards. Applies chart selection, layout, and annotation principles for executive audiences.