I train Finance Teams at Soft Skills | Corporate Training Facilitator | Course Instructor | Keynote Speaker

You can build the best reports…
and still struggle to make people care.

(I know because I used to do that, even as FP&A Manager)

I could spend weeks preparing the reports and the deck
only to see eyes glaze over when I presented them.

My “storytelling” looked like this:
- 40 slides
- 200 KPIs
- 0 engagement

Then… silence
No decisions. No alignment. No impact.

The reality check hit me when the CFO told me
"Soufyan, bring me the story. People I will present to need more than tables and graphs"

And he was right: If leaders don’t understand the story,
they can’t act on it, no matter how accurate the numbers are.

That moment changed everything.

I stopped trying to impress, and started trying to connect.

→ I simplified the narrative
→ I turned variance bridges into business stories
→ I built frameworks to help others do the same

A few years later, I was training entire finance pros.
Then entire teams.
Then CFOs started calling.

Today, I run The Finance Circle,
where I help FP&A teams, controllers, and CFOs
turn reports into stories that drive decisions.

Here’s how it works:

• The Finance Stage  for teams
• Financial Storytelling Program — our flagship training for professionals
• Coaching programs — for CFOs and Leaders
• Workshops on AI, Copilot & Storytelling

I’ve trained teams at Holcim, Deloitte, Bauer Media, Ansell, and Proximus.
Different industries, same goal: make Finance heard.

Because the best insight in the world means nothing
if no one remembers it after the meeting.

Ready to make your next presentation land?
Send me a message — let’s make your story stick.

Soufyan Hamid

Your words are killing your presence

12 ways to know if you’re doing it:

𝐅𝐢𝐫𝐬𝐭, 𝐰𝐡𝐚𝐭 𝐝𝐞𝐬𝐭𝐫𝐨𝐲𝐬 𝐲𝐨𝐮𝐫 𝐚𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲:

“Maybe we should…”
“I may be wrong, but…”
“Can I ask a dumb question?”
“Just thinking out loud here…”
“Hopefully this makes sense…”
“This might be overstepping…”
“Does that sound okay to you?”
“I’ll try my best to get that done…”
“I’m no expert in operations, but…”
“I just wanted to share this update…”
“I’m not sure if this adds value, but…”
“Would you mind if I add something?”

𝐖𝐡𝐚𝐭 𝐛𝐮𝐢𝐥𝐝𝐬 𝐲𝐨𝐮𝐫 𝐩𝐫𝐞𝐬𝐞𝐧𝐜𝐞:
“Here’s the key shift”
“The numbers suggest…”
“Here’s what the data is signalling”
“Here’s one scenario worth testing”
“Here’s how the pieces fit together”
“There’s a financial implication here”
“Does this align with your priorities?”
“Here’s an insight that could shift things”
“You’ll have the updated model by Friday”
“Let me build on that from a financial angle”
“Here’s how this flows through P&L and cash”
“Help me understand how this connects to targets”

In FP&A, your presence depends on what you know

but also on how confidently you deliver it

➟ Your analysis stays the same
➟ Your credibility doesn’t
➟ Strong language creates strong leadership

Which phrase are you eliminating first? 👇

Insight Communication for Modern Finance Teams (Storytelling Done The Right Way) | EMBA Lecturer | Keynote Speaker

"Let’s improve our financial storytelling"

Translation: Let’s argue about whether we should use pie charts or PowerBI

There's a problem that very few want to admit in FP&A:

Most "financial storytelling" advice will just help you make your data dumps a bit more sexy

But, it’s not actual storytelling

If you want financial insights to cross the door of the (virtual) meeting room after the monthly review and drive real decisions

Stop obsessing over the dashboard tools and start here

You need to answer these 10 questions before opening a single slide:
1️⃣ Audience: Who are we presenting to and what keeps them up at night?
2️⃣ Alignment: Are we on the same page about the problem before we present the data?
3️⃣ Business Insight: What do these numbers actually mean for the operation?
4️⃣ Message: What is the single core takeaway they must leave with?
5️⃣ Value: How does this narrative demonstrate value creation or risk mitigation?
6️⃣ Structure: What is the logical flow that leads inevitably to our conclusion?
7️⃣ Visuals: Is the data clear and engaging, or just a noisy spreadsheet screenshot?
8️⃣ Delivery: How will we present this to ensure it lands with impact?
9️⃣ Outlook: Don't just look back. What is next?
🔟 Action: (The most important one) What should we do differently tomorrow because of this data today?

Nail these 10?

You’ve got financial storytelling that makes people react

Ignore them?

You’ve just got another 90-page deck that will be forgotten by lunchtime

♻️ Repost if you've ever sat through a meeting that ended with zero clear action items

Reporting vs Explaining vs Influencing
Where would you put your team?
(PDF on https://lnkd.in/e9m42D9Y)

It's important because you can't change anything with reporting

But today, most teams I've seen are still blocked there

It could still work 10 years ago (and even so...) 
- gathering the different data sources
- cross-checking to verify the accuracy
- setting them in a usable report/dashboard

But the problem has always been that the rest of the company expects more from our job

Even 10 years ago, our stakeholders thought: "and now what?"

Leaders push back because they still don’t know what to do with what you showed them

So there's only one thing to do: move from hindsight to foresight

When you move your partners from the rear mirror to your windshield 

You become a finance business partner

If you want a simple way to diagnose where your team stands (reporting, explaining, or influencing) I’ve put together a visual that breaks down the differences with business impact included

It’s the framework I use in my workshops when teams want to raise the level of the conversation inside the business

If you want the full version, I’ve made it available as a free PDF

👉 https://lnkd.in/e9m42D9Y

Do you prefer to be respected or liked?

I want to be LOVED, and I'm telling you why 👇

Because until proven otherwise, we work with humans (not sure it will last long, but in the meantime, let's keep that hypothesis)

And people still prefer to be nice with people they love

Attention: I'm not pretending that by being "lovable", you can neglect to be competent ⚠️

In a workplace context, a "competent jerk" will more likely get more "task" collaboration than a "lovable fool"

But when it comes to influence situations (let's say, randomly, a budget nego), being likable will help you more because:
- you ask a lot of efforts
- you often bring bad news
- you have to challenge pushbacks

So, besides your mastery of models, also bring that to your toolkit
1️⃣ You make people feel heard
2️⃣ You challenge by asking questions
3️⃣ You stay calm
4️⃣ You're accountable and share credit
5️⃣ You have solid principles
6️⃣ You're fair in how you treat people
7️⃣ You deliver what you promise (always)
8️⃣ You bring solutions
9️⃣ You absorb stress
🔟 You equally support and challenge

I remember having had that discussion some time ago with some fellow finance leaders

Often the answer was that "respect" was more important

But what if you're both "respected" and "liked"?

When you see these 10 points, that doesn't seem the end of the world

Right?

I’ve trained 1.254 Finance Pros in Storytelling | EMBA Lecturer | Keynote Speaker

Only 17%* of FP&A teams say their data is truly “best in class”

Meaning 83% still struggle to reach that level.

And it’s not hard to see why:
• Endless time spent on reconciliations and manual files
• Insights arriving too late to influence anything
• CFOs running after reports instead of steering the discussion

That’s when finance starts spinning its wheels

Effort is higher than progress, and strategy fades into the background

The shift from the daily activities to strategic ones doesn’t happen overnight

It’s a gradual clim

You begin with standardization
→ One consistent process that removes the chaos

Then move to automation
→ Eliminate the repetitive busy work

Next comes measurement
→ Track what truly matters and make it visible

After that, continuous improvement
→ Weekly tweaks that quietly build long-term strength

And finally, innovation
→ When finance starts shaping the business

I’ve seen this path in every transformation I’ve worked on and in all the CFO roundtables I participated to

It would be great to be able to jump to the nitty gritty at once 

But a steady path works much better

📎 Share it with your CFO.
💾 Save it for when your team needs a boost.
⚙️ Use it as a roadmap to build a future-ready finance function.

* Source: 2025 FP&A Trends Survey

Want to dig deeper? Here are a few ways to start:

📘 Grab the free Financial Storytelling Starter Pack → https://lnkd.in/eadSXhKp
 🎥 Subscribe to my Youtube channel → https://lnkd.in/eDkW4xxC 
🤝 Or book a chat if you’d like to explore options for your team → https://lnkd.in/eKTff5s2

Analysis <> Storytelling, Ying and Yang of Finance

And you can learn to do it with AI, if you have 2 specialists together

That's what Nicolas Boucher and I did yesterday for Forge Connect even in Antwerpen organised by the wonderful team of Rydoo 

Together with 60 Finance pros, we explored how we can use AI to help us do our job

From data analysis to storytelling in 8 steps
1️⃣ Gather all data from different emails thanks to Copilot
2️⃣ Consolidate them into one single file
3️⃣ Run the analysis and create a report
4️⃣ Outline the presentation in a story
5️⃣ Create the slides to use during the presentation
6️⃣ Challenge the content and brainstorm for backup
7️⃣ Rehearse and get feedback on it
8️⃣ Have it delivered by an AI avatar (if you don't believe it can be done, look at Klarna's latest earnings 😉)

We don't do one or the other, we must do them all

That's why it was so great to collaborate with Nicolas on this

Like Melle Eijckelhoff said, we're the ying and the yang of what finance pros must do and we're complementary

Except when Nico stresses me by adding a totally new functionality in the presentation...

 ... 20 minutes before we start 😄 (look at the last photo, but don't worry, it eventually went great)

Jokes aside, this is the perfect workshop if you want your teams to get the best of AI in Finance

From to A to Z, they'll learn how to be efficient and do what's expected of them

Bring more human in finance 😉

Insight Communication Prompts for Finance Leaders
Get the high-res PDF on https://lnkd.in/e_p6FgKP

At the gates of 2026, you can't ignore AI in your work

And even more if you're a busy CFO or FP&A Leader who has to deliver insights after your team has worked on the analysis

So here are my ChatGPT/Copilot/Gemini prompts for Finance leaders

I built this reference sheet with the 8 domains where finance leaders can drastically increase their impact:

1/ Month-End Commentary
2/ Financial Storytelling
3/ Business Partnering
4/ Board & Executive Communication
5/ FP&A Insight Generation
6/ Leadership Presence
7/ Process Improvement
8/ Decision Support

You know it by now, your influence won't come from more slides

It comes from better communication of the insight that matters

So, if your main stakeholders are executives

Use these prompts to generate
- direction
- importance
- action

That's why you need a repeatable system your team can use every single week to:
• Frame insights like a senior leader
• Move faster from data to decision
• Build trust in tense moments
• Present with authority instead of hesitation
• Turn performance reviews into business conversations
• Strengthen the relationship with every stakeholder you support

These are the prompts I use when I train FP&A teams, CFOs, and business partners across Europe and the US.

Now they’re yours too

—

What would you add to the list?

Repost ♻️ if you want more finance teams to communicate with impact

P.S. I’m Soufyan Hamid — I help finance teams turn insights into decisions

I started to learn public speaking with TED talks

No, not all applies to our job, but CFOs can learn by listening to some

To be precise, 10 of them

These TED Talks reveal something every finance leader eventually realises:
👉 The job isn’t just numbers (it starts to be understood)
👉 The job is perception (still difficult to believe)
👉 The job is influence (rarely acquired)

Because when you sit in the CFO seat, nothing is “just finance” anymore:

Pressure
Ambiguity
Expectation
Risk
Human decisions
Organizational tension

You can’t eliminate any of it

But you can learn to navigate it

Here are 10 TED Talks every (future) CFO should watch (and the one insight you can apply today)

1️⃣ Margaret Heffernan — “Dare to Disagree”
Takeaway: Build productive conflict. It saves millions
💡 Ask before decisions: “What are we missing?”

2️⃣ Simon Sinek — “Why Good Leaders Make You Feel Safe”
Takeaway: Psychological safety makes data better
💡 Start your next finance meeting with a 3-minute check-in

3️⃣ Amy Edmondson — “How to Lead in a Crisis”
Takeaway: Replace fear with forward motion
💡 After risks, ask: “What small step moves us now?”

4️⃣ Dan Gilbert — “The Psychology of Your Future Self”
Takeaway: Long-range planning is guesswork
💡 Audit your 5-year assumptions: which ones will age poorly?

5️⃣ Nina Nesdoly — “How to Relieve Stress When You’re Overwhelmed”
Takeaway: You can’t outthink stress
💡 Before a board meeting: inhale 4, exhale 6, drop shoulders

6️⃣ Rainer Strack — “The Workforce Crisis of 2030”
Takeaway: Talent drives performance more than numbers
💡 Review workforce planning with the same rigour as your P&L

7️⃣ Ruth Chang — “How to Make Hard Choices”
Takeaway: Hard choices define identity
💡 Ask: What type of organisation do we want to build?

8️⃣ Tom Wujec — “Got a Wicked Problem? First, Tell Me How You Make Toast”
Takeaway: Visuals simplify what words complicate
💡 Turn your next messy process into a one-page visual map

9️⃣ Linda Hill — “How to Manage for Collective Creativity”
Takeaway: Innovation is a team sport, even in finance
💡 Run one “improvement sprint” per month with FP&A

🔟 Matt Abrahams — “Think Fast, Talk Smart”
Takeaway: Structure reduces anxiety
💡 Use: What? So what? Now what?

TED talks are motivational

But I see them more as a toolbox

The CFOs who inspired me the most are the ones who invest in how they think, how they communicate, and how they lead under pressure

Which one are you watching first? 
Are there others you would recommend?👇

The TED talks CFOs should look at or listen to

You are 1.000.000s to master Excel

You are unique at being YOU

That's why your soft skills are your competitive edge

Because at some point, everyone learns the formulas, the models, the systems

There are, of course, signatures but all these have to follow a set of rules to be applied correctly

But not everyone learns how to 
- influence a decision
- deal with adversary situations
- communicate a tough message

And since organisations are like pyramids, there are very few spots at the top

If you want to reach it, you need to differentiate

That differentiation won't come for skills you share with 1.000.000s of people

That will come from how you make them matter

Work on your soft skills

Future you will thank you for that

I get it, it's easy to talk for myself

But what if others talk about what storytelling did for them?

Over the last four years, I’ve taught the Financial Storytelling Program in companies, workshops and in a self-paced format

I can tell you why it works

But it’s easier to let others speak

“From this course, I learned excellent techniques to enhance my financial presentations, starting from the basics in graphics to tips on how to be prepared to answer difficult questions. [...]”
⭐⭐⭐⭐⭐ Carlos Rodriguez, CFO at Fracttal 

“Soufyan has prepared a great storytelling course that is very well structured, with an interactive mixture of theoretical concepts with great practical training and exercises that were catered to our industry[…] ”
⭐⭐⭐⭐⭐ Jasmeet Vasir, CFO at CMA CGM Inland

“The course was extremely comprehensive, structured and really well prepared… It really helped me organize my thoughts and offered significant knowledge on the subject”
⭐⭐⭐⭐⭐ Christos Kolokotronis, FP&A Business Partner 

“Soufyan is a great coach who comes to us well-prepared and provides very relevant examples to make the learning more valuable to us. His sessions are very engaging and interactive, filled with games and activities to make learning enjoyable and effective”
⭐⭐⭐⭐⭐ Rong Mo, FP&A Director at Upwork

“What I like about the program is that Soufyan gives what companies normally pay a lot of money for. You have practice, exercises and training, all that in a single individual program”
⭐⭐⭐⭐⭐ Nicolas Boucher, Founder at Nicolas Boucher Online 

This is what matters to me: not just that people “liked” the training, but that they left with a way of presenting that changes how their message lands

If you’re in FP&A, controlling or finance business partnering and you want your work to have that kind of effect, check the other testimonials and see what can happen when finance learns to tell a story

And whenever you're ready to make the step, join today with the Black Friday Offer
- reduced price ($147 instead of $247)
- bonus 1: live masterclass AI for Financial Storytelling 
- bonus 2: personal review of your slides and feedback

https://lnkd.in/dqNTTeBD

Testimonials of real people who learned to tell stories

The worst moment in your process is presentations

Because that’s the moment where:
– your credibility is visible
– your nerves become data
– and your story meets reality

But let me reassure you:

You don't have to be a born presenter

Everyone can learn to be one

But the finance world doesn’t teach this enough

That’s why I put together this resource inspired by the biggest learning I got on public speaking

These are the techniques I wish I had earlier in my career

When I was still thought my "spoke for itself"

A few that change everything:
🔹 The 5-5-5 Rule
Your eyes tell the room you’re in control, even before your voice does

🔹 The Power Pause
Nothing signals confidence more than giving silence space to work for you

🔹 The 3-Part Open
A clean opening does more than engage. It sets the agenda for how people interpret your numbers

🔹 The Lighthouse Method
Anchor points keep the audience from drifting, especially when slides get heavy

🔹 The Callback Technique
One well-timed reminder can turn a deck into a story

Use them as tools

And like all tools, don't use a screwdriver to break a wall

Determine which one works when

Because people need to feel your conviction to trust you

And once they feel it, they follow it

The biggest performance killer in FP&A isn’t in the tools

It’s the myths we keep believing about planning

These myths quietly shape how teams work.

They create stress, confusion, and unrealistic expectations long before the numbers are even discussed

If you’ve ever wondered why planning cycles feel heavier than they should, it usually comes back to one thing:

Teams start from beliefs that were never true in the first place

Here are some of the myths holding finance teams back (and the facts that actually move planning forward):

———

1/ The plan must be 100% accurate
I’ve watched teams obsess for hours over a decimal point.
Accuracy matters, of course, but planning is a process of direction, not perfection.
Great teams focus on directional guidance.

———

2/ More detail means a better plan
Granularity feels safe but in practice, it slows you down and clouds judgment.
What leaders need is decision-level visibility, not transactional noise.

———

3/ Planning happens once a year
Every FP&A leader knows that the world doesn’t wait for your calendar.
Everything moves, shifts and evolves.
Continuous planning is the only way to stay aligned with reality.

———

4/ FP&A owns the plan
It took me years to understand this one: we don’t own the plan. The business does.
Our real job is to facilitate the thinking, challenge the assumptions, and orchestrate the alignment...and play with Excel

———

5/ Forecasts should mirror the org chart
This myth creates silos, political debates, and disconnected plans. 
The business doesn’t operate in perfect boxes.
Neither should your model.

———

6/ Variance analysis is a blame game
In high-performing teams, it becomes a learning loop.
A space to understand what really happened and how to adjust.

———

7/ Tools will fix your planning problems
No matter which new fancy tool you choose, technology helps, but it won’t solve weak processes.
Discipline comes first.
Then tools amplify it.

———

Every planning cycle exposes the same truth: the real challenge is in the mindset

When you let go of the old myths, planning becomes lighter, sharper, and far more aligned with how the business actually works

Stop trying to plan harder and start planning smarter

♻️ Repost if your team needs that for next planning season

Would you rather spend $50k on:

A - licenses and bots to automate a month-end process nobody fully understands

B - a workshop with the process owners, a wall of brown paper, and a pizza stack

Serious question, there is no right or wrong

Except if you answer A then you are definitely not right

OK, I admit, I joke

Automation is tempting, I know

Vendors promise 75% saved time
Your backlog is long
Headcount is limited 

The idea of “it's done by itself” sounds great

Before you do, here is my advice:

DO NOT AUTOMATE BROKEN PROCESSES.

ONLY automate what you would proudly run manually once, start to finish

If you automate a messy workflow, guess what?

You just pay to make the mess move faster

That is a really expensive way to hide problems.

Here is what we do instead in FP&A and finance partnering:
1️⃣ Map the steps and the owners: everything included in the process
2️⃣ Remove duplicates and rework: in a manual process, there sure are
3️⃣ Define the single source of truth
4️⃣ Pilot the clean process for one full cycle: measure time & errors
5️⃣ Then, automate, and only then

A quick example from my past (way before AI):

I was in a company where Finance was in love with cubes (I will not say the name of tool, just to be fair)

Whenever an idea came to mind, the first reflex was to call the [tool] team and start building the process with the cube in mind

Long story short, almost every "new" cube had a lifetime of less than a year

Because it could easily be tested, iterated or brainstormed in Excel and with that, we would have noticed what wouldn't work correctly

When I had the opportunity (and power), I started to ask for a POC before anything could be set in a cube

It changed everything.

My lesson here is: automate your best version of the process

Your best version that drives the results you want:
- Shorter close
- Less manual inputs
- More understandable reports
- Happier teams
- More time for scenarios and storytelling

Bill Gates said it well. “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency”

I just saved you a budget line and a few weekends

You are welcome 🙂

They keep saying every story needs a hero

But have you ever tried to use that in a finance presentation?

It’s… ridiculous

I’ve heard dozens of “storytelling experts” tell CFOs and FP&A teams to follow the Hero’s Journey

Problem: our world doesn’t work like that

No one in the boardroom is waiting for a hero

They’re waiting for clarity, impact, and decisions

So I tested it

In this week’s video, I actually built a “hero-style” finance presentation and presented it to an imaginary exec team

Let’s just say it didn’t go well

You imagine the result?

Awkward silence, confused faces, and one imaginary exec asking me to go to the point

Financial storytelling doesn’t need heroes

In the new video, I break down:
👉 What the Hero’s Journey really is
👉 Why it fails for CFOs and FP&A professionals
👉 The storytelling structure that actually works in executive presentations

🎥 Watch it here → https://lnkd.in/eBv-SGpD

Ever been told to “make your CFO the hero”?

Tell me below: did it help your story… or kill it?

Most burnouts happen between budget and year-end

But that window is just the moment to work on recovery

Why does it happen now?

Simply because you know what you lived and you fear the next round 😫

We're not going to lie, despite all the progress made regarding automation, simplification and rolling forecasts, budgets are still an intense period in FP&A

Out of the hundreds of companies I have contacts in, maybe 2-3 go through it like a walk in the park

And the problem is: teams go out of it exhausted

But the worst is not even there yet

Right after the budget, many FP&A pros are already thinking about the next big thing

With year-end comes the stress of
- the continuous risks and opps
- the quick wins to reach the targets
- the annual closing and the reports that go with it

It's sad to admit but it's often in that period that people break

This is both due to mental AND physical breakdown

But just like a car, you must refuel if you want to keep the journey

So here are some techniques to recover mental and physical health
1️⃣ Practice breathing exercises
2️⃣ Focus on your concrete sense
3️⃣ Reset your body posture
4️⃣ Differentiate danger from discomfort

I wish I had known that back then

If for you, it's not yet too late, now is the time to do them

And if you want your teams to be fully operational in 2026, share that with them

Micro-Recoveries for Macro-Performance

I’ve always had a hard time delegating

Not because I didn’t trust my team

But because I felt responsible for the outcome

Until the moment I almost touched burnout

That’s when I realized something simple:

To trust your team, your first have to let go, no matter how they prove themselves

But even then, a tougher question came up:

👉 What should I delegate… and what should I keep?

In Finance, it’s not obvious

Some tasks look easy but require context

Others look strategic but can be shared safely

So I’m curious:

What’s hardest to delegate in Finance?
- Forecasting
- Presentations
- Stakeholder management
- Decision support

👇 Vote and share your rule for what stays on your plate vs what you let go

The author can see how you vote. Learn more

A quick note for those who asked me this week

The Black Friday offer for the Financial Storytelling Program closes tonight

It’s the full method I built after years of presenting to executives and training finance teams

And this week it includes two bonuses for the first 50 people:
✔️ The AI Masterclass for Financial Storytelling
✔️ A personalised audit of one of your slides

If this is something you’ve been wanting to work on, all the details are in the comments

Nothing more to add

I just didn’t want you to miss it

Join today

https://lnkd.in/dqNTTeBD

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Ever found yourself facing a last-minute request to build a financial model, feeling so overwhelmed you literally couldn’t think straight?  Then read this 👇

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After being up until 2am the previous night, I had my head in my hands at a Colorado Rockies’ game, so insanely overwhelmed because I felt unprepared building a financial model.

Today, I can build in 2 𝘩𝘰𝘶𝘳𝘴 what used to take me 𝘸𝘦𝘦𝘬𝘴, and it’s definitely 𝘯𝘰𝘵 because I’m smarter, it’s because... 𝗜 𝗞𝗻𝗼𝘄 𝗪𝗵𝗮𝘁 𝘁𝗼 𝗗𝗼.

What most people don’t realize is that Financial Modeling can be broken down in systematic steps you can repeat every time, so you’re not always recreating the wheel from scratch.

So that’s why I created the 𝗨𝗹𝘁𝗶𝗺𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗠𝗮𝘀𝘁𝗲𝗿𝘆 𝗣𝗿𝗼𝗴𝗿𝗮𝗺: teach everything I 𝘸𝘪𝘴𝘩 I knew back then—𝙖 𝙥𝙡𝙖𝙮𝙗𝙤𝙤𝙠—to hopefully save just one Analyst from spending all weekend at the office.

Fast forward, here’s what things look like today:

🏆 Trusted by over 43,000 students with 4.9/5.0 Star average rating

🏆 Over 100,000 followers on LinkedIn & other social media platforms

🏆 Recognized by Business Insider and Financial Modeling World Cup

🏆 Featured by Wharton Online, Wall Street Prep, & LinkedIn Learning

In just 8 hours, you'll learn to build the 𝘦𝘹𝘢𝘤𝘵 Financial Models I use with real Investment Banks, FP&A Teams, and Private Equity Firms—models you can use immediately—no fluff or insufferable corporate jargon.

Enroll today, and make sure you never spend another night, weekend (or vacation) burned out at the office 👉 https://www.financialmodelingeducation.com/

"Training is fantastic..."
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Check it out here 👉 https://www.financialmodelingeducation.com/

Chris Reilly

I teach Financial Modeling, but...

I only use 3 advanced Excel formulas on a regular basis.

Don’t get me wrong -- Excel has some incredible functionality.

But I still find a lot of it complicated (and honestly, unnecessary for day-to-day modeling).

Here are the only "advanced" formulas I really use:

   – INDEX/MATCH (sometimes XLOOKUP)
   – SUMIFS
   – SUMPRODUCT

Btw, these are usually for summary tabs -- not the detailed guts of the model.

(Think dashboards)

~~~
📍 𝗕𝘁𝘄: Here's an Income Statement template to get you started 👉 https://lnkd.in/exez-uUT 
~~~


Everywhere else, I pretty much live here:

   – SUM
   – AVERAGE
   – Direct cell links ( = )
   – Plus ( + )
   – Minus ( - )
   – Divide ( / )
   – Multiply ( x )

Just basic Excel 101.

That’s 95% of my modeling.

Yes, sometimes I have to get fancy and calculate IRR or use dynamic array functions.

Or combine a few of the functions above to achieve a result.

But those moments are rare -- especially in standard ​FP&A operating models​.

And after all these years, I’ve learned one thing:

~~~
💡 𝙏𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙬𝙞𝙡𝙡 𝙖𝙡𝙬𝙖𝙮𝙨 𝙘𝙤𝙢𝙥𝙡𝙞𝙘𝙖𝙩𝙚 𝙩𝙝𝙚 𝙛𝙞𝙡𝙚.  𝘿𝙤𝙣’𝙩 𝙡𝙚𝙩 𝙩𝙝𝙚 𝙛𝙞𝙡𝙚 𝙘𝙤𝙢𝙥𝙡𝙞𝙘𝙖𝙩𝙚 𝙩𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨.
~~~

So, keep it simple where you can (to be user-friendly).

Make it scalable on the back-end (to reduce error).

And only complicate it when you truly have to.



p.s. If you're feeling a little stuck in "Excel hell" and want to learn to build models like a business owner, I can help 👉 https://bit.ly/FMECourses

I can help you master Three Statement Modeling & 13 Week Cash Flow Forecasting in 8 hours.

50 Excel shortcuts for modeling 👉 https://lnkd.in/esbZCXje 


🟢 𝗕𝗲𝗴𝗶𝗻𝗻𝗲𝗿

Copy (Ctrl + C)
Paste (Ctrl + V)
Cut (Ctrl + X)
Undo (Ctrl + Z)
Redo (Ctrl + Y)
Save (Ctrl + S)
Bold (Ctrl + B)
Italic (Ctrl + I)
Underline (Ctrl + U)
Select entire column (Ctrl + Space)
Select entire row (Shift + Space)
Insert row (Ctrl + Shift + '+')
Delete row (Ctrl + '-')
Open format cells dialog (Ctrl + 1)
Insert comment (threaded note) (Alt + R + C)

🟠 𝗜𝗻𝘁𝗲𝗿𝗺𝗲𝗱𝗶𝗮𝘁𝗲

Fill down (Ctrl + D)
Fill right (Ctrl + R)
Apply currency format (Ctrl + Shift + $)
Apply percent format (Ctrl + Shift + %)
Apply border (Ctrl + Shift + &)
Format painter (ribbon) (Alt + H + F + P)
Hide rows (Ctrl + 9)
Hide columns (Ctrl + 0)
Go to specific cell (F5)
Select visible cells only (Alt + ;)
Freeze top row (Alt + W + F + R)
Move to next worksheet (Ctrl + Page Down)
Move to previous worksheet (Ctrl + Page Up)
Switch open workbooks (Ctrl + Tab)
Open name manager (Ctrl + F3)

🔴 𝗔𝗱𝘃𝗮𝗻𝗰𝗲𝗱

Show formulas (Ctrl + `)
Evaluate formula (Alt + M + V)
Name a range (Ctrl + F3)
Create a table (Ctrl + T)
Insert function (Shift + F3)
Jump to precedents (Ctrl + [)
Jump to dependents (Ctrl + ])
Go to special (Ctrl + G → Special)
Paste special (Ctrl + Alt + V)
Flash fill (Ctrl + E)
Repeat last action (F4)
Group rows/columns (Alt + Shift + →)
Ungroup rows/columns (Alt + Shift + ←)
Collapse outline (Alt + A + H)
Return to previous location (F5 → Enter)

🔵 𝗕𝗲𝘀𝘁 𝗳𝗼𝗿 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴

Lock cell reference (F4)
Add line break in cell (Alt + Enter)
Insert today’s date (Ctrl + ;)
Insert current time (Ctrl + Shift + ;)
Recalculate workbook (Ctrl + Alt + F9)
Paste values only (Alt + E + S + V)
Format as number (Ctrl + Shift + 1)
Format as date (Ctrl + Shift + 3)
Format as time (Ctrl + Shift + 2)
Increase decimal (Alt + H + 0)
Decrease decimal (Alt + H + 9)
Toggle absolute/relative (F4 (in formula bar))
Apply general format (Ctrl + Shift + ~)
Select entire worksheet (Ctrl + A (twice))
Add horizontal border (Alt + H + B + H)

⚠️ 𝗗𝗶𝘀𝗰𝗹𝗮𝗶𝗺𝗲𝗿

Knowing Excel shortcuts 𝙬𝙤𝙣'𝙩 get you a seat on the Board, but it will help you speed up what the Board needs: 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹𝘀 they can actually understand, that help you decide what the business should do next.

Want to put all those shortcuts to good use?

Master three statement modeling here: https://bit.ly/FMECourses

𝗕𝗥𝗘𝗔𝗞𝗜𝗡𝗚 — Board Rejects AI Financial Model

After opening Excel Online for the first (and last) time ever, local financial modeler Chris Reilly proudly told the Board, “Yeah, AI made the whole thing.  It took eight minutes and I went and got coffee.”

The model reportedly included three statements, a debt schedule, and a circular reference that Reilly claimed "achieved sentience" before obliterating itself into a wall of cells that just said #𝗡𝗔𝗠𝗘?.

“While we’d love to write a blank check for millions of dollars with zero diligence, we unfortunately needed at least one 𝘩𝘶𝘮𝘢𝘯 brain to validate and interpret the output,” said the anchor LP of a large fund-of-funds.

“Loved his spirit,” added one Board member, “but that thing had more hallucinations than me in college.”

Despite promises that AI would “𝘣𝘶𝘪𝘭𝘥 𝘮𝘰𝘥𝘦𝘭𝘴 𝘪𝘯 𝘴𝘦𝘤𝘰𝘯𝘥𝘴 𝘴𝘰 𝘺𝘰𝘶 𝘤𝘢𝘯 𝘧𝘰𝘤𝘶𝘴 𝘰𝘯 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘺,” the model apparently fabricated an entire new product line, three subsidiaries, and an IPO scheduled for next Thursday.

Sources went on to confirm the model forecasted 400% annual growth, negative expenses, and “infinite free cash flow.”

At press time, Reilly was reportedly seen updating the headline of his resume to "Chief Prompt Engineer."

Curious what it's like to close a deal in Private Equity?

This winding roadmap can help... 👇


✔️ 𝗪𝗵𝗮𝘁 𝗪𝗲'𝗿𝗲 𝗗𝗼𝗶𝗻𝗴

The acquirer (usually Private Equity firm) is trying to figure out "𝘥𝘰𝘦𝘴 𝘣𝘶𝘺𝘪𝘯𝘨 𝘵𝘩𝘪𝘴 𝘤𝘰𝘮𝘱𝘢𝘯𝘺 𝘮𝘢𝘬𝘦 𝘴𝘦𝘯𝘴𝘦?"

And while no two deals are the same, one thing is for sure: there is a TON of work that goes into due diligence.


🔁 𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗣𝗿𝗼𝗰𝗲𝘀𝘀

Generally speaking, due diligence starts with cheaper, in-house tasks like building the financial model, analyzing contents in the data room, and submitting an IOI/LOI.

If the deal looks attractive, then more expensive third-party providers are brought in (lawyers, accountants, & consultants).


⚠️ 𝗥𝗼𝗮𝗱𝘄𝗼𝗿𝗸 𝗔𝗵𝗲𝗮𝗱

You'll notice the map has plenty of sharp curves, cracks, and off-ramps.

That's because the majority of the time the buyer will exit the road early.

(something obvious doesn't pan out or match the investment thesis).

But over time, "𝘵𝘩𝘦 𝘥𝘦𝘢𝘭" will emerge that slowly makes its way down the road, navigating the cracks, bumps, potholes, and whatever else, to ultimately close the deal.

This is a TON of work for the Private Equity firm, Investment Bank, and especially those at the "target company" (the company being acquired).

Often, it can feel like you're working two jobs for 6-9 months.


💻 𝗡𝗼𝘁𝗲 𝗳𝗼𝗿 𝗠𝗼𝗱𝗲𝗹𝗲𝗿𝘀

As diligence progresses, your Financial Model will keep track of everything.

   ↳ Financial Statements
   ↳ EBITDA & Valuation
   ↳ Business Analysis
   ↳ Closing Date
   ↳ Legal Terms

Make sure that thing is air-tight.

More people will rely on it than you think...

(Your team, lenders, investors, etc.)


🤝 𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲

Despite possibly sounding cliché, it all comes back to people and a cultural fit.

The target company and Private Equity firm need to get along, otherwise the deal can go to sh*t quickly.

When you're on the road, the "windshield time" can be some of the most valuable.

(when you're driving with company employees to visit different business sites).

So no matter what road your diligence process takes (or what your Financial Model looks like), it will 𝗮𝗹𝘄𝗮𝘆𝘀 𝗰𝗼𝗺𝗲 𝗯𝗮𝗰𝗸 𝘁𝗼 𝗰𝘂𝗹𝘁𝘂𝗿𝗲.

You can use this map to guide you.

Hope this helps 🙂.


💡 𝗪𝗵𝘆 𝗜 𝗽𝗼𝘀𝘁 𝗼𝗻 𝗟𝗶𝗻𝗸𝗲𝗱𝗜𝗻:

When I worked in Private Equity, I spent too many nights & weekends building models I barely understood.

Now, I teach everything I 𝘸𝘪𝘴𝘩 I knew then:

🤝 𝗛𝗼𝘄 𝗜 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽:

📥 Due diligence Gantt chart: https://lnkd.in/eDJqaFfR 

𝘱.𝘴. 𝘢𝘯 𝘓𝘉𝘖 𝘮𝘰𝘥𝘦𝘭 𝘪𝘴 𝘫𝘶𝘴𝘵 𝘢 𝘵𝘩𝘳𝘦𝘦 𝘴𝘵𝘢𝘵𝘦𝘮𝘦𝘯𝘵 𝘮𝘰𝘥𝘦𝘭 𝘸𝘪𝘵𝘩 𝘴𝘰𝘮𝘦 𝘧𝘢𝘯𝘤𝘺 𝘴𝘵𝘶𝘧𝘧 𝘰𝘯 𝘵𝘰𝘱.  𝘐 𝘤𝘢𝘯 𝘵𝘦𝘢𝘤𝘩 𝘺𝘰𝘶 𝘵𝘰 𝘣𝘶𝘪𝘭𝘥 𝘰𝘯𝘦 𝘵𝘰𝘥𝘢𝘺 👉 https://bit.ly/FMECourses

Everyone can tell you 𝘄𝗵𝗮𝘁 EBITDA is, but no one can tell you 𝘄𝗵𝘆.

7 tips to help understand 𝗪𝗛𝗬 EBITDA exists 👇


1️⃣ 𝗘𝗕𝗜𝗧𝗗𝗔 𝟭𝟬𝟭

It's not GAAP or Cash.

It calculates a company's 𝙣𝙤𝙧𝙢𝙖𝙡𝙞𝙯𝙚𝙙 profitability by removing the effects of financing and accounting decisions.

There are two main reasons for this:

   1. Comparison to other companies
   2. Establishing a basis for valuation


2️⃣ 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝗡𝗲𝘁 𝗜𝗻𝗰𝗼𝗺𝗲

Net Income is the "GAAP Profit" or "Earnings" of the company.

We start with a "GAAP-recognized" figure and work backwards.


3️⃣ 𝗡𝗲𝘂𝘁𝗿𝗮𝗹𝗶𝘇𝗲 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀

Companies can make different estimates related to:

   ● Amortization of intangibles
   ● Impairment charges
   ● Salvage value
   ● Depreciation
   ● Useful life

So by "adding back" Depreciation and Amortization, it helps mitigate the impact of these varying accounting policies.

This provides a more uniform measure of performance.


4️⃣ 𝗡𝗲𝘂𝘁𝗿𝗮𝗹𝗶𝘇𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀

"Interest" is the cost of using borrowed money.

But what if a company didn't borrow?

It wouldn't have this expense.

So by "adding back" the interest, it shows us what the company's earnings would look like without debt.


5️⃣ 𝗡𝗲𝘂𝘁𝗿𝗮𝗹𝗶𝘇𝗲 𝗧𝗮𝘅 𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀

Taxes are tricky. We all pay them, so why add them back?

The catch: how businesses handle taxes varies.

Some businesses, like S Corps and LLCs, don't pay corporate income tax.

Instead, taxes pass through to owners' personal returns.

C Corporations, on the other hand, 𝙙𝙤 pay corporate income tax.

So, a C Corp would show an income tax expense on its income statement (and the other types would not).

Lastly, the other adjustments (from above) affect taxable income (it gets a little circular).

So this final step ensures we get a "tax-neutral" view, which helps us compare business on a more apples-to-apples basis.


6️⃣ 𝗪𝗵𝗮𝘁 𝗘𝗕𝗜𝗧𝗗𝗔 𝗶𝘀 𝗠𝗶𝘀𝘀𝗶𝗻𝗴

Changes in Working Capital: EBITDA doesn't factor in cash timing related to receivables or payables.

CapEx: Cash used to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.

Debt Principal: Interest expense is accounted for in EBITDA, but principal repayment of debt is not.

Capital Lease Payments: These obligations are found on the balance sheet. However, similar to debt principal, the principal portion of these lease payments is not reflected in EBITDA.


7️⃣ 𝗦𝘂𝗺𝗺𝗮𝗿𝘆

EBITDA helps us compare companies by neutralizing the effects of financing, accounting, and tax decisions.

The key comparison is "Operational Profitability," but 𝙣𝙤𝙩 Cash.

It's a useful 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝗽𝗼𝗶𝗻𝘁, but it's not the whole picture.

It needs to be modeled alongside 𝗳𝗿𝗲𝗲 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 to have any real meaning.

I can teach you both here: https://bit.ly/FMECourses

Learn the statement of cash flows with this simple AF one-pager 👇


✓ 𝙍𝙚𝙦𝙪𝙚𝙨𝙩 𝙇𝙞𝙨𝙩

First things first, you'll need some data.

Ask for the Income Statement and the Balance Sheet.


✓ 𝙎𝙩𝙚𝙥𝙨 — 𝙄𝙣𝙘𝙤𝙢𝙚 𝙎𝙩𝙖𝙩𝙚𝙢𝙚𝙣𝙩

1. Pull the Net Income from the Income Statement

2. Pull the Depreciation from the Income Statement

(or use the change in Accumulated Depreciation from the Balance Sheet if available)


✓ 𝙎𝙩𝙚𝙥𝙨 — 𝘽𝙖𝙡𝙖𝙣𝙘𝙚 𝙎𝙝𝙚𝙚𝙩

You're calculating the 𝘤𝘩𝘢𝘯𝘨𝘦𝘴 between two periods.

For Assets: Previous Period - Current Period

For Liabilities & Equity: Current Period - Previous Period

(note, if Fixed Assets are shown on a "net basis," you'll need to subtract Depreciation from your calculation as well)

~~~
📥 btw, here's a balance sheet guide 👉 https://lnkd.in/ew4nwaVx 
~~~


✓ 𝙀𝙣𝙙 𝙍𝙚𝙨𝙪𝙡𝙩

If done correctly, the ending cash should match what you see on the Balance Sheet.

Once it does, you can be confident your model is structurally sound.

And now you can carry those formulas forward to reflect your forecast.


💡𝙋𝙧𝙤 𝙏𝙞𝙥

Once your Statement of Cash Flows is built correctly, you leave it alone.

~~~𝗙𝗢𝗥𝗘𝗩𝗘𝗥~~~

Your modeling should only be done in the Income Statement and Balance Sheet.

The Statement of Cash Flows is nothing more than a formulaic bridge between the other two statements.


✓ 𝙎𝙠𝙞𝙢𝙢𝙖𝙗𝙡𝙚 𝙑𝙚𝙧𝙨𝙞𝙤𝙣

   • Get Income Statement & Balance Sheet
   • Calculate Changes b/t Balance Sheet
   • Works correctly when Ending Cash matches the Balance Sheet


~~~

Hey! I'm Chris Reilly, and I teach financial modeling.

I can help you master Three Statement Modeling in a few hours.

↪ https://bit.ly/FMECourses

Check out this video...

How you can use SUMPRODUCT to spot errors in your model 👇

~~~
📥 𝘱.𝘴. 𝘩𝘦𝘳𝘦'𝘴 𝘵𝘩𝘦 𝘥𝘢𝘴𝘩𝘣𝘰𝘢𝘳𝘥 𝘧𝘳𝘰𝘮 𝘵𝘩𝘦 𝘷𝘪𝘥𝘦𝘰 👉 https://lnkd.in/efdpVuxX 
~~~

𝗧𝗵𝗲 𝗳𝗼𝗿𝗺𝘂𝗹𝗮

Here's the formula: =SUMPRODUCT(--iserror([range]))

Note: In the video I incorrectly say "double negative 🙃," but Matthew Herbert of BizTrix pointed out that:

"The double minus is an operator, not negation. The double minus is the unary operator and it explicitly converts logical values into numbers (true converts to 1 and false converts to 0). ISERROR returns a logical value. This is why SUM(ISERROR(range)) or SUMPRODUCT(ISERROR(range)) returns 0 but placing the unary operator in front of ISERROR returns >0 when there is an error."

I have no idea what that means, but sounds good to me.

(Even as an experienced user and instructor there's always something new to learn!)


𝗨𝘀𝗲 𝗰𝗮𝘀𝗲

I will often put this SUMPRODUCT formula in the upper-left corner of a given sheet, and use it as a quick check/scan to see if any errors pop up.

Maybe something helpful you can add to your model 🙂.



~~~

👋 Hey, I'm Chris Reilly -- I teach financial modeling the way I 𝘸𝘪𝘴𝘩 someone taught me.

🎓 I can help you master Three Statement Modeling and 13 Week Cash Flow Forecasting in only 8 hours -- and you'll complete your first working model in just 45 minutes.

↪ https://bit.ly/FMECourses

Hey so that model you just emailed your boss...

...did you check it for errors?


For real though, how closely?

(slamming F2 saying "looks good looks good looks good" isn't a strategy)

I hate to break it to you, but 90% of all spreadsheets contain errors.

(𝘎𝘰𝘰𝘨𝘭𝘦 𝘪𝘵)

That's an A- in being wrong.

Not great.

The truth is, Excel's amazing flexibility also exposes our 𝘩𝘶𝘮𝘢𝘯 limitations —

We make mistakes.

All of us.

———

If there is software out there that can be:

▪️ a grocery list, and;

▪️ a time keeper, and;

▪️ billion-dollar LBO, then;

𝘴𝘶𝘳𝘦𝘭𝘺 the human mind can find a way to make a mistake.

(I've done it plenty of times)

———

That's why the first thing I do with every file is build "error checks."

It's a separate tab.

I call it "QC" for "Quality Control."

Others call it "QA" ("Quality Assurance").

Others call it "Errors" or "Validations."

Doesn't matter what you call it, 𝘺𝘰𝘶 𝘫𝘶𝘴𝘵 𝘸𝘢𝘯𝘵 𝘵𝘰 𝘩𝘢𝘷𝘦 𝘪𝘵.

———

You link all your possible errors to this one place.

▪️ Does my Balance Sheet balance?

▪️ Does my Statement of Cash Flows match the Balance Sheet?

▪️ Are my Covenants in compliance?

▪️ Does my Cash go negative?

Then at the top, you put a "𝗠𝗔𝗦𝗧𝗘𝗥 𝗖𝗛𝗘𝗖𝗞 𝗖𝗘𝗟𝗟."

The Master Check Cell references all the 𝘰𝘵𝘩𝘦𝘳 errors below.

And ~𝗣𝗿𝗼 𝗧𝗶𝗽~ you link this Master Check Cell to cell A1 of 𝘦𝘷𝘦𝘳𝘺 𝘰𝘵𝘩𝘦𝘳 𝘵𝘢𝘣 in your workbook.

That way, when something goes wrong (and it will),

you are 𝘪𝘮𝘮𝘦𝘥𝘪𝘢𝘵𝘦𝘭𝘺 notified (in cell A1), and you can investigate.

𝗤𝘂𝗶𝗰𝗸 𝘁𝗶𝗽:

▪️ press "ctrl + [ " on cell A1

▪️ it will bring you to your "QC" tab

———

I've got an example in the image below.

You can see my list of possible errors,

and my "Master Check Cell" at the top.

For complicated files I will have hundreds of these.

It is the first and last tab I 𝘢𝘭𝘸𝘢𝘺𝘴 check before hitting "send" in my email.


𝙉𝙚𝙭𝙩 𝙎𝙩𝙚𝙥𝙨 ⤵️

📥 Stay organized with this modeling checklist 👉 https://lnkd.in/eVTU67fY 

✅ Master this error-checking technique with step-by-step videos 👉 https://bit.ly/FMECourses

Three statement modeling can be overwhelming when you're starting out.

Here's what to do when "you don't know what you don't know" 👇


1️⃣ 𝗛𝗶𝘀𝘁𝗼𝗿𝗶𝗰𝗮𝗹 𝗜𝗻𝗰𝗼𝗺𝗲 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 & 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗦𝗵𝗲𝗲𝘁

This is your first request.

You need the 𝘩𝘪𝘴𝘵𝘰𝘳𝘪𝘤𝘢𝘭 Income Statement and Balance Sheet 𝘣𝘺 𝘮𝘰𝘯𝘵𝘩.

Hard to believe, but it's all you need to build a complete three statement model.


2️⃣ 𝗕𝘂𝗶𝗹𝗱 𝗛𝗶𝘀𝘁𝗼𝗿𝗶𝗰𝗮𝗹 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄𝘀

This is the step everyone gets wrong.

They get the IS and BS from above and immediately start building a Revenue forecast.

No. Not yet.

Build the 𝘩𝘪𝘴𝘵𝘰𝘳𝘪𝘤𝘢𝘭 cash flows first.

Why?

The Ending Cash on your Balance Sheet is already available as a reference point.

So, using the 𝗶𝗻𝗱𝗶𝗿𝗲𝗰𝘁 𝗺𝗲𝘁𝗵𝗼𝗱, you should be able to build a Statement of Cash Flows that 𝘮𝘢𝘵𝘤𝘩𝘦𝘴 the Balance Sheet.

This is your early double-check that your model is working correctly.

The Ending Cash should match for every month of the historical period.

Once you get this right, 𝘵𝘩𝘦𝘯 you're ready to move on.

~~~
📌 𝘣𝘵𝘸 𝘩𝘦𝘳𝘦'𝘴 𝘢 𝘥𝘦𝘵𝘢𝘪𝘭𝘦𝘥 𝘤𝘩𝘦𝘤𝘬𝘭𝘪𝘴𝘵: https://lnkd.in/eVTU67fY 
~~~


3️⃣ 𝗦𝘄𝗶𝘁𝗰𝗵 𝘁𝗼 "𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁 𝗠𝗼𝗱𝗲"

Since your SCF works correctly, now you're ready to create the "plumbing" for the forecast.

Drag your columns forward for as many months as you need.

(Typically three statement model is 3-5 years).

Leave your Income Statement entirely flat & unchanged.

𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗽𝗮𝗿𝘁:

Balance Sheet needs 2 things:

   1) Ending Cash now links to your SCF
   2) Retained Earnings = Prior Period + Current Period Net Income

✅ This will make your Balance Sheet Balance.


4️⃣ 𝗕𝘂𝗶𝗹𝗱 𝗮 𝗕𝗮𝘀𝗶𝗰 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁

Now that your plumbing is correct, you can build a basic forecast:

   ↳ YoY % growth for Revenue (fine for now)
   ↳ COGS as % of Revenue
   ↳ G&A mostly fixed + inflation assumption
   ↳ Calculate Net Income & EBITDA

   ↳ Build Working Capital (AR, AP, Inventory using DSO, DOH, DPO)
   ↳ Deferred Revenue
   ↳ Tax Accrual
   ↳ Bonus Accrual
   ↳ Debt Schedule
   ↳ Equity Schedule (if needed)

A lot of these can be done with "BASE Modeling," i.e.:

𝗕𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝗕𝗼𝗻𝘂𝘀
   (+) Bonus Expense
   (-) Bonus Cash Payments
𝗘𝗻𝗱𝗶𝗻𝗴 𝗕𝗼𝗻𝘂𝘀

(Ending Balance links back to your Balance Sheet).


🧠 𝗥𝗲𝗺𝗲𝗺𝗯𝗲𝗿: Every experienced modeler started exactly where you are.

   ↳ Start with the history
   ↳ Get the "plumbing" right
   ↳ Build a basic forecast
   ↳ Add details later

Hope this helps 🙂.


~~~
𝘱.𝘴. 𝘪𝘧 𝘺𝘰𝘶'𝘥 𝘱𝘳𝘦𝘧𝘦𝘳 𝘵𝘰 𝘸𝘢𝘵𝘤𝘩 𝘷𝘪𝘥𝘦𝘰𝘴 𝘢𝘯𝘥 𝘭𝘦𝘢𝘳𝘯 𝘵𝘩𝘳𝘦𝘦 𝘴𝘵𝘢𝘵𝘦𝘮𝘦𝘯𝘵 𝘮𝘰𝘥𝘦𝘭𝘪𝘯𝘨 𝘴𝘵𝘦𝘱-𝘣𝘺-𝘴𝘵𝘦𝘱, 𝘐 𝘤𝘢𝘯 𝘵𝘦𝘢𝘤𝘩 𝘺𝘰𝘶 𝘪𝘯 𝘫𝘶𝘴𝘵 𝘢 𝘧𝘦𝘸 𝘩𝘰𝘶𝘳𝘴 👉 https://bit.ly/FMECourses

I've been passionate about Private Equity for as long as I can remember.

But it has a 𝗱𝗮𝗿𝗸 𝘀𝗶𝗱𝗲 too...


🗣️ 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻

It begins and ends with a breakdown in communication.

Fuel on the fire? Different personalities, styles, and compatibility.

It might sound cliché, but partnering in private equity isn’t all that different from a romantic relationship.

All fun and games early on, but comes down to compatibility long term.

The dinner/drinks/onsite stage is exciting.

Everyone's talking about growth and upside.

But reality often plays out differently.


❌ 𝟭𝘀𝘁 𝗠𝗶𝘀𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴: 𝗗𝘂𝗲 𝗗𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗶𝘀 𝗡𝗼 𝗝𝗼𝗸𝗲

People at the "OpCo" (company being acquired) often feel like they’re working two jobs:

   1) Their normal role

   2) Responding to diligence requests from the PE firm

The stressor is obvious -- longer hours at work and less time at home.

It’s easy for doubt to creep in early:

“Is this what it’s going to be like 𝘦𝘷𝘦𝘳𝘺 𝘥𝘢𝘺?”


❌ 𝟮𝗻𝗱 𝗠𝗶𝘀𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴: 𝗧𝗵𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗗𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗶𝘀 𝗜𝗻𝘁𝗲𝗻𝘀𝗲

In middle-market deals, there’s often an "understanding gap" between the OpCo finance team and the PE firm.

The OpCo knows the “old way,” but now they’re faced with a new capital structure.

Once you start talking about LBOs, revolvers, equity contributions, and so on -- it can be overwhelming.


❌ 𝗣𝗘 𝗙𝗿𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗧𝗲𝗮𝗺 𝗜𝘀𝗻’𝘁 𝗔𝘀 𝗦𝘁𝗿𝗼𝗻𝗴 𝗔𝘀 𝗘𝘅𝗽𝗲𝗰𝘁𝗲𝗱

The PE firm starts questioning post-close roles and even considers hiring new people.

Contrary to popular opinion, PE 𝙙𝙤𝙚𝙨𝙣'𝙩 want to fire anyone.

But in reality -- the acquisition is an investment -- and it needs a team that can deliver returns to LPs.


❌ 𝗧𝗲𝗿𝗺𝘀 𝗮𝗻𝗱 𝗗𝗲𝗮𝗹 𝗙𝗮𝘁𝗶𝗴𝘂𝗲

This is why a detailed LOI is so important.

Disagreements over structure can lead to long legal calls that go late into the night.

By the time the deal finally closes, both sides are exhausted.

And now they’re supposed to 𝘤𝘦𝘭𝘦𝘣𝘳𝘢𝘵𝘦?


📆 𝗧𝗵𝗲 𝗘𝗮𝗿𝗹𝘆 𝗗𝗮𝘆𝘀

This is where compatibility either kicks in -- or it doesn’t.

Things can improve… or:

   - teams start blaming each other

   - new hires are made, others leave

   - systems change

   - culture shifts

   - add-ons are made with little integration

And the OpCo feels it most -- because the PE firm is in charge now.


🔎 𝗭𝗼𝗼𝗺𝗶𝗻𝗴 𝗢𝘂𝘁

PE gets painted as the villain, but both sides have to agree to the deal.

In my experience, it always comes back to one thing: 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻 🤝.


👀 𝗪𝗵𝗮𝘁 𝗛𝗮𝘃𝗲 𝗜 𝗦𝗲𝗲𝗻?

If 0 is toxic and 10 is sunshine & rainbows -- most deals I’ve seen are a 6 or 7.

A successful outcome, with a few bumps and bruises along the way.


p.s. if you're interested in PE, I can help you:

📚 interview guide 👉 https://lnkd.in/ewh-x6_k 

📽️ learn LBO modeling 👉 https://bit.ly/FMECourses

Which part of a three statement model trips you up the most?
Full quiz here 👉 https://lnkd.in/eccYpT-R

Which part of a three statement model trips you up the most?

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