Blog 5: Financial Acquisition Model

One time I faced a challenge during the internship was when I was asked to work on a financial acquisition model. I had seen only a couple in the past, but never something so extensive and I had no idea where to start. I was a little hesitant to ask for help at first, but once I approached my boss, he took the time to sit with me and work through any doubts I had. I slowly got the hang of it and in the process learned some basic excel skills like using pivot tables and custom formulae. Together we refined the model and it aided in negotiations to buy out a prospective firm. I learned how there were numerous facets to an acquisition process including seller’s notes and earn-outs. I learned how leveraged buyouts come with immense risks but could lead to huge rewards. This was especially clear when the financial model was finished and various facets of a business’ performance could be seen including EBITDA, stock turnover, and so many other things. Working on the model gave me the confidence to work on other novel parts of the acquisition operation including assessing the manufacturing facilities and talking to the owner of the business or any brokers.

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