In investment banking, financial models like DCF and LBO are crucial for valuation and deal analysis. However, these models can be complex with many interlinked Excel spreadsheets. This is where the football field model comes in – it arranges the key model components on a single page like a football field. This structure makes relationships clear and simplifies navigation. With football field modeling, bankers can better present the model logic and assumptions. Now let’s explore how football field modeling works in investment banking Excel models like DCF.
Football field structure visually links model elements
The football field structure organizes the model into logical zones – each zone handles a distinct model component. For example, the upper left zone might show revenue drivers. The lower left tackles expenses. The right side could represent the income statement and balance sheet. Links between zones reveal how changes flow through the model. This clear visual structure helps bankers easily audit model integrity. When presenting models to clients, the football field layout improves understanding of how outputs are calculated from inputs.
Football field modeling reduces spreadsheet clutter
Investment banking Excel models often use complex nested worksheets. This can make auditing difficult as logic jumps between sheets. Football field consolidation into a single page simplifies model navigation. With the full model viewable on one page, troubleshooting is faster. Redundant or unnecessary worksheets can be eliminated. Football field structure highlights only the core model mechanics rather than obscured intermediate calculations.
Single page layout enhances model transparency
Spreading a model over many tabs can hide key logic and assumptions. Football field consolidation reveals model fundamentals upfront. At a glance, clients understand how outcomes are derived. Key assumptions and formulas are visible for discussion and testing. With hand calcs and supporting schedules appended to the edges, documentation is centralized for easy reference. Increased model transparency improves client trust and efficiency in analyzing deal scenarios.
In summary, football field modeling boosts investment banking Excel model clarity, intuitiveness and transparency. Consolidating the model onto a single page makes linkages clear. Eliminating clutter enhances understanding of core logic and assumptions. The football field structure enables efficient model analysis, presentation and auditing.