How have others with non-PE backgrounds learned to financially evaluate a deal? What process do you typically go through?
This blog is an interesting resource: https://bigdealsmallbusiness.substack.com/p/gut-reaction-deal-math
But wondering what others have done to get them more comfortable with the prospective cash flow, return potential, etc.
best resources for deal math
by a searcher
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
a. how much will business grow/decline
b. how will margins evolve
c. what was your cap structure and how it affected IRR
And then as long as you buy something (self-funded) and don't drop the ball majorly on a. or b. above -- the IRR will be pretty compelling
The goal here is not to use an LBO model for a search, but just to learn the different factors that come up when analyzing a companies financial statements for a buyout: https://www.streetofwalls.com/finance-training-courses/
Other good stuff there if you're generally interested in finance work.