Q: How are ValueBridge.net and AUXILIA Mathematica different?

ValueBridge.net is application-focused and subscription-based . Each of the 40 ValueBridge.net modules includes downloadable Excel templates, short video demonstrations, step-by-step examples, and online value creation calculators that test models for errors. AUXILIA Mathematica is theory-focused and free with registration . Content often includes detailed proofs, derivations, and direct comparisons with other models used in academic and industry research. Excel templates and online value creation calculators are available for some (not all) topics on the site. ValueBridge.net is designed for private equity analyst who want immediate results and generally lack the time or inclination to read a 240-page math book or spend five hours watching video on the AUXILIA Mathematica YouTube page .

Q: How do I cancel my subscription?

On your Account page , go to the "My Subscription" section and click "Cancel". If you have had more than one subscription, first go to the "Subscriptions" section and click "View" for the active subscription. Then you can click "Cancel".

Question 1

How does ValueBridge.net work?

Accepted Answer

ValueBridge.net helps analysts measure how private equity returns are driven by changes in portfolio company P&Ls, capital structures, and broader market conditions. This helps GPs explain why their investment approaches are differentiated and helps LPs measure whether those narratives are supported by the numbers.

Watch a 3-minute platform demo

Measure value driven by:

Company performance

EBITDA, gross profit, revenue
Margins, operating expenses

Capital structures

Leverage effect, gearing
Equity dilution
Valuation

Broader market forces

Market valuation multiples
Addressable market changes
Sector leverage levels
Foreign exchange rates

Financing activities

Equity inflows and outflows
Debt financing
Add-on acquisitions
Dividend recapitalizations

Question 2

To what content do I have access?

Accepted Answer

Active subscribers have access to 100% of available ValueBridge.net content, including video instruction, Excel templates, online calculators, module notes, references, case studies, community forums, and support.

Video
Instruction

Excel
Templates

Online
Calculators

Detailed
Examples

References

Case
Studies

Forums

Support

Question 3

Is all content currently available?

Accepted Answer

Not yet! We are still building ValueBridge.net, and adding more videos, Excel Templates, and online calculators every month.

Question 4

What is the current status of available site content?

Accepted Answer

Over 70% of content for the first 40 ValueBridge.net Modules is already complete. Nearly all the Microsoft Excel Templates are available and written instruction, with step-by-step examples, has been provided for more than 90% of Modules. Video instruction is available for all the major value drivers related to investment performance, capital structures, and broader market forces. Additional content is being added every week, and the remaining should be completed in Q1 2024.

Total Content Status

Module Component Status

Module Component Details

#	Module	Written Instruction	Video Instruction	Excel Templates	Online Calculators
01	Net MOIC and Net IRR	✅	✅	✅	✅
02	Equity Dilution and Equity Concentration	✅	✅	✅	✅
03	Unlevered Return and the Leverage Effect	✅	✅	✅	✅
04	EBITDA Growth and EBITDA Multiple Expansion	✅	✅	✅	✅
05	Revenue Growth and Revenue Multiple Expansion	✅	✅	✅	✅
06	Dependent and Independent Variables	✅	✅	✅	✅
07	Five ways to Measure Private Equity Returns	✅	✅	✅	✅
08	Gearing and Cashflow in an LBO	✅	✅	✅	✅
09	Gearing and Cashflow in a Growth Investment	✅	✅	✅	✅
10	Interest Costs and Debt Tax Shield	✅		✅	✅
11	Revenue Growth and EBITDA Margin Expansion	✅	✅	✅	✅
12	Gross Margin Expansion and Operating Margin Reduction	✅	✅	✅	✅
13	Market-driven Multiple Expansion	✅	✅	✅	✅
14	Market Multiple Data Sources
15	Market-driven Revenue Growth	✅	✅	✅	✅
16	Addressable Market Data Sources
17	Sector-appropriate Gearing	✅	✅	✅	✅
18	Other Market Drivers	✅		✅	✅
19	Market versus Manager-driven Returns	✅		✅	✅
20	The Market Return Matrix
21	Foreign Exchange Rates	✅		✅
22	Five Mistakes that GPs Make	✅		✅	✅
23	Acquisition Adjustments (I)	✅		✅
24	Acquisition Adjustments (II)	✅		✅
25	Exit Adjustments (I)	✅		✅	✅
26	Exit Adjustments (II)	✅		✅
27	Holding Period Inflows and Outflows	✅		✅	✅
28	Follow-on Equity Investments	✅		✅	✅
28	Equity Distributions	✅		✅	✅
30	Add-on Acquisitions	✅		✅	✅
31	Divestments	✅		✅	✅
32	Debt Financing	✅		✅	✅
33	Dividend Recapitalizations	✅		✅	✅
34	Earn Outs	✅		✅	✅
35	Multiple Holding Period Inflows and Outflows	✅		✅	✅
36	The Effective IRR	✅		✅	✅
37	Value Creation over Time	✅		✅
38	Value Creation across Valuation Domains	✅		✅
39	Aggregate Value Creation across Portfolios	✅		✅
40	Net Return-based Value Drivers	✅		✅

Question 5

When will the ValueBridge.net content be completed?

Accepted Answer

The first 40 ValueBridge.net modules will be completed before year-end 2023.

Question 6

How do the Excel Templates work?

Accepted Answer

This ~5 minute video shows how you can use the ValueBridge.net Excel templates to kick start your own value creation models.

The video briefly covers:

Finding an applicable Module
Choosing the right Tab for the appropriate valuation-basis
The two value creation models
The five value creation measurements
Modifying the value bridge chart
Adapting template for financing activities

Question 7

How do the Online Calculators Work?

Accepted Answer

Calculators are an important part of the ValueBridge.net toolkit. They perform the same math as the Excel templates, but they cannot be altered (broken) through human error. Consider using the Online Calculators to occasionally spot-check your Excel models. Certainly do so before significant events, like including results in a Private Placement Memorandum or an Investment Committee Memo.

To check your work, start with a similar ValueBridge.net Module and select the appropriate parameters. Copy only the "independent variables" from the Excel file to the Online Calculator. This saves time because the Excel model's 60-80 numbers are mostly dependent variables, but only the 8-10 independent variables must be plugged into the Online Calculator. Choose either the Derivative Model or Logarithmic Model from the drop-down to view results.

Make sure that Excel model and Online Calculator provide the same answers. If there is any discrepancy greater than 1-2%, start working backwards through the Online Calculator's calculated dependent variables to find the source of the error. Consider using the "PRINT" button to make a hard copy and "check-off" the correct variables as you search for the wrong ones.

Question 8

What are the ValueBridge.net Case Studies?

Accepted Answer

Case Studies highlight interesting applications of ValueBridge.net mathematics, as well as other platform features. Some content has already been created, but this section will become more interesting after the first 40 ValueBridge.net Modules are entirely complete.

Non-subscribers can view some of the Case Study content, but active subscriptions are required to comment or download related Excel templates.

Question 9

What is the ValueBridge.net Forum?

Accepted Answer

The Forum section currently highlights updates that are being made to the site. Subscribers can access all forum content, create topics ask questions, and post replies, so this section may become more interesting as subscribers join the site.

Question 10

Who runs ValueBridge.net

Accepted Answer

Mike Reinard has been working with private equity GPs and institutional LPs for over 15 years. He helps fund managers tackle resource intensive financial analysis, marketing, fundraising, and investor relations projects (e.g., creating complex portfolio analyses, writing the next private placement memorandum, or building a custom direct deal sourcing software application, etc.).

Mike specializes in the mathematics of private equity. He wrote the book Private Equity Value Creation Analysis in 2020 and also runs the private equity mathematics website AUXILIA Mathematica.

Question 11

What is "Private Equity Value Creation Analysis"?

Accepted Answer

Published in 2020, Private Equity Value Creation Analysis is a top private equity book on Amazon.com. It is a comprehensive handbook for the analysis of private companies and portfolios. Its framework quantifies how leverage, valuation, company P&Ls, market and industry trends, and other factors drive equity returns. Such analyses are used by private equity and venture capital fund managers to explain their approaches to buying and selling companies and by institutional investors to validate them.

Specifically designed for the particularities of private equity ownership, the book’s value creation models are mathematically rigorous and based on metrics that are practical and accessible (i.e., those generally found in fund manager reporting and marketing materials). Formulas are built to function over the widest range of company, industry, and market conditions and provide intuitive and non-volatile results.

Question 12

What is AUXILIA Mathematica?

Accepted Answer

AUXILIA Mathematica was started as a private equity math blog in 2019. The articles, Excel templates, and online calculators initially posted there led to a rigorous mathematical framework that formed the basis of the book Private Equity Value Creation Analysis, published at the end of 2020.

Since 2021, AUXILIA Mathematica has been exploring and explaining the mathematics of private equity through video, on the site and AUXILIA Mathematica's YouTube page. These videos describe the math in the book and additional applications, with a focus on proofs, derivations, and direct comparisons with other models used in academic and industry research.

Question 13

How are ValueBridge.net and AUXILIA Mathematica different?

Accepted Answer

ValueBridge.net is application-focused and subscription-based. Each of the 40 ValueBridge.net modules includes downloadable Excel templates, short video demonstrations, step-by-step examples, and online value creation calculators that test models for errors.

AUXILIA Mathematica is theory-focused and free with registration. Content often includes detailed proofs, derivations, and direct comparisons with other models used in academic and industry research. Excel templates and online value creation calculators are available for some (not all) topics on the site.

ValueBridge.net is designed for private equity analyst who want immediate results and generally lack the time or inclination to read a 240-page math book or spend five hours watching video on the AUXILIA Mathematica YouTube page.

Question 14

Will my subscription auto-renew?

Accepted Answer

Yes. Your subscription will renew either monthly, quarterly, or annually, depending upon options chosen at sign-up. You can manage payment methods or cancel the subscription on your Account page.

Question 15

How do I cancel my subscription?

Accepted Answer

On your Account page, go to the "My Subscription" section and click "Cancel". If you have had more than one subscription, first go to the "Subscriptions" section and click "View" for the active subscription. Then you can click "Cancel".

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