Resource library

The underwriter's library

Practitioner guides to the technical finance and accounting behind every underwrite: valuation, financial statements, accounting standards, credit, real estate finance, deal structuring and alternatives.

Valuation

Discounted Cash Flow (DCF) Valuation ExplainedComparable Company Analysis and Precedent TransactionsHow an LBO Model Works: Structure, Returns and RisksTerminal Value: Gordon Growth vs Exit MultipleCost of Equity and WACC: CAPM, Size and Specific RiskHow to Value a Small Business: SDE, Assets and Market

Financial Statement Analysis

Three-Statement Model: Linking IS, Balance Sheet and CashQuality of Earnings Analysis: A Diligence GuideNormalizing EBITDA: Which Add-Backs Hold UpNet Working Capital, Cash Conversion Cycle and the PegFCFF vs FCFE: Unlevered and Levered Free Cash FlowDeferred Revenue, ARR and NRR in SaaS UnderwritingCredit Ratio Analysis: Liquidity, Leverage and Coverage

Accounting Standards

ASC 606 and IFRS 15 Revenue Recognition for UnderwritersASC 842 and IFRS 16 Leases: Effect on EBITDA and LeveragePurchase Accounting, Goodwill and Price AllocationGAAP vs IFRS Differences That Change UnderwritingCash vs Accrual Books in Small-Business DealsReconciling Tax Returns to Financial StatementsFIFO, LIFO, Inventory Reserves and Inventory Diligence

Credit Analysis

The Five Cs of Credit and a Modern Credit FrameworkDesigning Financial Covenants: Maintenance vs IncurrenceSizing Debt by DSCR, Debt Yield, LTV and LeverageHow SBA 7(a) and 504 Loans Are UnderwrittenAsset-Based Lending, Borrowing Bases and Field Exams

Deal Structuring

The Capital Stack: From Senior Debt to Common EquityEquity Waterfalls: European vs American StructuresPreferred Return, Catch-Up and Promote Explained

Alternative Investments

Private Credit: Direct Lending, Unitranche and ABFValuing Royalty Streams and Decay CurvesProject Finance, CFADS and DSCR SculptingCatastrophe Bonds and Insurance-Linked SecuritiesFund Fees: Carried Interest, Hurdles and Clawbacks

Real Estate Finance

How to Build a Real Estate Pro FormaDirect Capitalization vs DCF in Real Estate ValuationDevelopment Feasibility, Yield on Cost and Land Value

Deal Documents

What Belongs in an Acquisition Letter of IntentPurchase Agreement Terms: Reps, Baskets, Caps, Escrows

Risk

Volatility, Drawdown, VaR and Sharpe in Illiquid Assets

Deal Process

How an Investment Committee Evaluates a Deal

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