The right way to set up Excel spreadsheets for the value creation models in this series.
Module Category: Analysis Tactics and Techniques
Key Concept: Value creation models can be designed robustly to mitigate potential errors. Simply limiting the number of possible inputs goes a long way toward achieving this goal. The ValueBridge.net Templates and Online Calculators limit inputs to the bare minimum of independent variables, and use them to calculate any other dependent variables that are required.
As private equity scenarios become more complex, and include holding period inflows and outflows like Add-on Acquisitions and Equity Distributions, clearly defining the independent and dependent variables becomes even more important.