Handling adjustments forces you to validate your logic. Whether you are new to modeling or refining your technicals, you must move beyond the template to the specific math that makes a valuation defensible. By mastering concepts like mid-year conventions and stub periods, you ensure your numbers stand up to scrutiny.
In Part II of this 4-week series, we focus on Adjustments & Timing. We will walk through specific adjustments regarding cash flow timing to ensure your technical logic is bulletproof.
Agenda
- Intro & Market Brief (5m): Who I am, the goal of this series, and major news to know this week.
- Rapid-Fire Lesson (30m): A guided breakdown of questions within the topics listed below.
- Q&A (10m): Open floor for questions.
Sample Topics
- Mid-Year Convention: Why we use it and the math adjustment (0.5 vs. 1).
- Stub Periods: Calendarizing financials to align with valuation dates.
- Terminal Value: Exit Multiple vs. Gordon Growth (and when they conflict).
- SBC (Part 2): The Valuation Impact. The Treasury Stock Method (TSM) for calculating fully diluted shares.
About the Host Michael N. is the Founder of OFFERGOBLIN and a former UChicago Tech Lead. He previously worked at Centerview Partners.
