Financial models for search fund

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August 15, 2024

by a searcher from University of Toronto in Toronto, ON, Canada

What types of financial models do you need to build when analysing a deal?

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Reply by a searcher
from Concordia University in Boston, MA, USA
In very simple terms, it's an LBO.

See here for a simple financial model to get things started: https://docs.google.com/spreadsheets/d/1o8ZOiIhflXzIfbkif58jEqndy_ixfjWImBOxjIc9TnU/edit?pli=1&gid=0#gid=0

Hope this helps.
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Reply by a searcher
from Lebanon Valley College in Media, PA 19063, USA
In my view, it's important to get recent income statements and balance sheets right off the bat. Use these as inputs to come up with working capital & an initial valuation. This will also allow you to understand if the balance sheet can be leveraged as part of the acquisition
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