Fantastic as always. Thanks for writing. I still use the spreadsheet version of this (from "Gut Reaction Deal Math"), which you posted last year I think. Would love to participate in buyer/ETA communities that you facilitate. Cheers.
Love your Substack. I'm at a growth equity fund, personally looking into ETA. Do you have Excel model templates to share with the community / plan to post about ETA financial modeling?
Thank you! Appreciate you reading. Creating some Excel model templates is definitely in the works over the next few months, but don't have anything off-the-shelf yet.
Thanks for this! I got everything up to the cash flow part, but it then gets a bit dicey. Might need some further clarity as some steps are hidden when you start breaking down Unlevered vs levered
Do you mind explaining where it got hard to follow? The difference between unlevered and levered is just the debt structure of the deal. So however you're using debt to finance the deal.
Sure, let me be more specific. For the example that you shared starting with "Second, Levered Free Cash Flow Yield..." (Highlighted in BOLD) , you say "your levered free cash flow is $300K." Is it $300K because it's $700K - $400K or unlevered minus interest expense, right? Read it another time now and that seems to make sense
Fantastic as always. Thanks for writing. I still use the spreadsheet version of this (from "Gut Reaction Deal Math"), which you posted last year I think. Would love to participate in buyer/ETA communities that you facilitate. Cheers.
Thanks so much! Shoot me an email at admin@guessworkinvesting.com with your email so I can add you to our local happy hour events.
Love your Substack. I'm at a growth equity fund, personally looking into ETA. Do you have Excel model templates to share with the community / plan to post about ETA financial modeling?
Thank you! Appreciate you reading. Creating some Excel model templates is definitely in the works over the next few months, but don't have anything off-the-shelf yet.
Sounds great! Looking forward to them
Great post. Every first time buyer needs to read this!
Thank you! Hopefully a handy link to send to new searchers interested in the space.
Thanks for this! I got everything up to the cash flow part, but it then gets a bit dicey. Might need some further clarity as some steps are hidden when you start breaking down Unlevered vs levered
Do you mind explaining where it got hard to follow? The difference between unlevered and levered is just the debt structure of the deal. So however you're using debt to finance the deal.
Sure, let me be more specific. For the example that you shared starting with "Second, Levered Free Cash Flow Yield..." (Highlighted in BOLD) , you say "your levered free cash flow is $300K." Is it $300K because it's $700K - $400K or unlevered minus interest expense, right? Read it another time now and that seems to make sense
Thanks so much! Thanks for reading.