Napkin math forces you to internalize deal structure. Whether you are learning LBOs for the first time or speed-training for a test, stripping away the spreadsheet requires you to master the transaction logic. This session builds the mental framework required to structure deal math and efficiently calculate returns.
In Part III of this 4-week series, we focus on Structuring & Napkin Math. We will cover the mechanics of deal consideration (Cash vs. Stock) and the mental shortcuts required to solve LBO and merger math without a spreadsheet.
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
- Deal Consideration: The risk mechanics of Fixed Exchange Ratios vs. Floating Exchange Ratios in stock deals.
- Paper LBO: Calculating MOIC/IRR with simple inputs in <60s.
- Accretion/Dilution: The "Breakeven P/E" shortcut method.
- Debt Paydown Logic: Understanding Cash Sweeps and why 100% of cash flow doesn't always go to debt.
About the Host
Michael N. is the Founder of OFFERGOBLIN and a former UChicago Tech Lead. He previously worked at Centerview Partners.
