Sensitivity analysis is an indispensable tool utilized in corporate finance and business analysis to comprehend how the variability in key input variables influences the performance of a business. By methodically adjusting the inputs and observing the ensuing effect on outputs, analysts can discern which variables have the most profound impact on the bottom line. This
LBO (Leveraged Buyout) Modelling is one of the core tools for M&A in corporate finance. LBO models are a type of financial model which is built to evaluate the financial viability and returns of a leveraged buyout transaction. What is a Leveraged Buyout? A leveraged buyout (LBO) is the acquisition of a company or
Financial modelling and forecasting is a crucial life skill for anyone with ambitions to be an entrepreneur or who wants to be in management in business. The expertise in accounting and Excel that you will develop will lead you inevitably to understand where value comes from in a business and where it is destroyed. You
Compound annual growth rate (CAGR) is a useful metric for presenting a variable growth trend by its implied weighted-average compound growth rate over a period of time: It smooths out volatility in growth and accounts for the compounding effect from year to year. CAGR represents the constant compound rate at which an investment would
Understanding year-over-year (YOY) growth is a fundamental skill for graduates entering corporate finance roles. Also called year-on-year, comparing period-over-period performance provides insight into the financial health and trajectory of a business. What is Year-Over-Year Growth? Year-over-year (YOY) growth is a way of calculating the percentage change in a financial metric compared to the
Let me start by saying that in financial analysis, valuation and modelling there is no substitute for knowing your numbers! This is no doubt the case when it comes to looking at PPE. PPE is one of the core elements of any financial analysis. That link between investing in the business and growth in
