Financial Modeler's Corner

In this episode of Financial Modeler's Corner, host Paul Barnhurst is joined by Morten Lykke Pedersen, a seasoned financial expert and Partner at Deloitte, where he leads the financial modeling division within the Strategy, Risk, and Transaction Advisory group. Morten discusses his extensive experience in mergers and acquisitions (M&A), strategic financial modeling, and how financial models can empower businesses to make informed, data-driven decisions. He also shares insights on the importance of collaboration during the modeling process, tips for ensuring client engagement, and the role of financial models in presenting a company’s equity story.Morten Lykke Pedersen, CFA, CFM, is a financial expert with over a decade of experience. He specializes in mergers and acquisitions (M&A), providing strategic insights that empower businesses to optimize their strategies through forecasting and risk assessment. Morten's career spans notable roles, including his tenure at PwC, where he managed valuation and modeling services. At Deloitte, Morten is dedicated to guiding businesses through complex transactions and strategic initiatives, helping them navigate industry dynamics and execute transformative transactions successfully. He holds a CFA charter and certifications in financial modeling, and his educational journey includes advanced degrees from Aarhus University, Saint Mary’s University, and the CFA Institute.Expect to LearnThe critical role of collaboration in transaction modelingHow to build financial models that communicate a company’s story and manage riskThe importance of scenario analysis in M&A transactionsWhy financial models should reflect business realities, not just numbersHow formal training programs, like the Chartered Financial Modeler (CFM), can elevate modeling skills and team capabilitiesHere are a few quotes from the episode:“Financial modeling is about understanding the business, not just crunching numbers.” - Morten Lykke Pedersen“A financial model should only do what it’s supposed to do, keep it simple and fit for purpose.” - Morten Lykke Pedersen“It’s not about the formulas; it’s about making sure the people who own the numbers understand what’s going on in the model.” - Morten Lykke PedersenFollow Morten:LinkedIn -  https://www.linkedin.com/in/mortenlykkepedersen/?originalSubdomain=dkCompany - https://www.linkedin.com/company/deloitte/Follow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:16] - Guest Background[03:43] - Worst Model Horror Story[07:58] - Client Engagement[11:52] - Conveying Company Value[13:35] - Supporting Assumptions with Data[21:11] - The CFM Journey with Morten's Team[31:19] - Favorite Excel shortcut.[32:14] - The Number One Career Lesson[33:39] - Rapid-Fire Questions[37:38] - Final Advice

In this episode of Financial Modeler's Corner, host Paul Barnhurst celebrates the 40th anniversary of Microsoft Excel, a tool that has revolutionized the financial modeling industry and many others. Paul explores Excel’s fascinating history, its evolution over four decades, and shares interesting facts, hidden Easter eggs, and fun surprises that Excel enthusiasts will appreciate. From the first graphical interface to modern-day features like dynamic arrays, this episode showcases how Excel has shaped the way we work and how it continues to be an essential tool for financial modelers.Expect to LearnThe fascinating origin story of Excel and its early days on the Mac.Fun facts about Excel’s features, including its secret limitations and quirky surprises.Excel's functionality has evolved over the years to include over 500 functions.Hidden Easter eggs and games that were embedded in older versions of Excel.Creative and unique Excel projects, including games and pixel art, showcase the limitless possibilities within Excel.Here are a few quotes from the episode:"The first version of Excel only had 150 functions, and now we’re up to 516! That’s quite a leap over 40 years." - Paul Barnhurst"Sometimes, the most creative projects come from using Excel in ways you never thought possible, like pixel art or creating a full video game." - Paul Barnhurst"The tool of choice for modelers is Excel, and it has a lot more to offer than meets the eye." - Paul BarnhurstFollow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:17] - 16 Fun Facts About Excel[08:11] - Excel's Evolution[14:58] - Excel Easter Eggs[16:55] - Excel Jokes to Lighten the Mood[19:13] - Epic Excel Creations: Stunning Art[23:11] - Wrapping Up and Final Thoughts

In this republished episode of the Financial Modeler’s Corner, host Paul Barnhurst revisits the intricate world of financial modeling with returning guest Christopher Reilly. The conversation centers around what is necessary to build robust financial models, highlighting the importance of three-statement models and cash flow forecasting. The episode is filled with practical insights, advanced techniques, and professional experiences that underscore the significance of simplicity, accuracy, and best practices in financial modeling.Christopher Reilly is a seasoned financial modeler with extensive experience in consulting, private equity, and financial modeling education. Starting his career during the financial crisis, Chris worked on high-profile bankruptcies such as Lehman Brothers and Rescap. His journey took him from a senior analyst role at Hilton Worldwide to a middle-market private equity firm, and eventually led to founding his own financial modeling education business. Today, he focuses on teaching and building financial models, with his work being featured by Wharton Online, Wall Street Prep, and LinkedIn Learning, among others.Expect to Learn:The importance of simplicity in financial models and how over-complicating can hinder their effectiveness.Practical steps and considerations for building robust three-statement financial models.Tips for auditing models to ensure accuracy and integrity.How to use advanced Excel functions and shortcuts to enhance modeling efficiency.Insights into the role of AI in financial modeling and how it may shape the future of the profession.Here are a few quotes from the episode:“All models are wrong, some are useful, and if it’s too complicated, it’s not useful.” - Chris Reilly“AI won’t replace modelers, but it will complement us by improving assumption accuracy and reducing bias.” - Chris Reilly“Use the BASE structure: Beginning, Addition, Subtraction, Ending, it’s the easiest way to audit support schedules.” - Chris ReillyFollow Christopher:Website - https://www.financialmodelingeducation.com/LinkedIn - https://www.linkedin.com/in/chris-reilly-mission-capital/  Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguy  YouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:13] - Horror Story[03:46] - Why simple models are most effective[04:52] - Christopher’s career journey[08:07] - Passion for teaching financial modeling[11:31] - Why finance pros need 3-statement modeling[14:13] - Getting started with a 3-statement model[26:18] - Setting Up the Financial Plumbing[32:01] - Tips for error checks & model integrity[38:26] - Must-know Excel formulas & functions[46:16] - How AI may shape financial modeling[49:13] - Chris Reilly’s Financial Modeling Courses

In this episode of Financial Modeler’s Corner, host Paul Barnhurst welcomes Sarah Schlott, founder of The Schlott Company. Sarah shares her perspective on why financial models often fail, not because of bad math, but because they don’t reflect how real businesses work. She talks about what it takes to earn trust as a finance partner, how to clean up messy data without losing momentum, and the importance of getting the right people involved in the process. Sarah and Paul also dive into how finance teams can shift from reactive number-crunchers to proactive business partners that bring clarity and confidence to decision-making.Sarah Schlott is a strategic finance leader with over 18 years of experience guiding companies through growth, M&A, and operational change. She’s worked across corporate finance, forecasting, budgeting, and reporting infrastructure. Sarah is the founder of The Schlott Company, where she helps founders bring order to financial chaos. Her approach blends classic FP&A with modern tools and a deep understanding of real-world business dynamics. She believes finance should bring clarity, not confusion.Expect to LearnWhy overly complex models usually create more confusion than insightWhat it means to be “battle-tested” as a finance leaderHow to build models that reflect business reality, not just spreadsheetsWhat to do when the data is unreliable or inconsistentWhy involving department heads early leads to better models and better outcomesHere are a few quotes from the episode:"When you’re constantly fighting about the numbers, you’re not ready to present the model." - Sarah Schlott"If the people who own the numbers don’t see themselves in the model, you should probably just chuck it." - Sarah Schlott"Stop being the cop. Be the radio tower that keeps everything aligned."  Sarah SchlottFollow Sarah:LinkedIn - https://www.linkedin.com/in/sarahschlott/Website - http://www.sarahgschlott.com/Company - https://theschlottco.com/Follow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [01:53] - Introduction to Sarah Schlott[03:14] - Worst Model Horror Story[07:48] - Founding The Schlott Company[10:19] - Experience Needed to Go Fractional[14:53] - Building Finance That Brings Calm, Not Confusion[17:28] - How to Work with Messy Data[20:58] - Pressure Testing Financial Models[28:04] - Finance as a Radio Tower, Not a Traffic Cop[39:39] - Rapid-Fire: Excel Tools and Modeling Styles[43:37] - Wrapping Up and Final Thoughts

In this episode of Financial Modeler’s Corner, host Paul Barnhurst welcomes Nico Christie, co-founder of Fundamental Research Labs and creator of Shortcut, the superhuman Excel agent. Nico shares insights into his fascinating journey, from being a professional athlete to leading groundbreaking AI projects. Together, they explain how AI is revolutionizing financial modeling and making Excel smarter than ever before. Nico also discusses his work at Fundamental Research Labs, where they aim to build digital humans using AI, and the development of Shortcut, which aims to streamline the way we use Excel for financial modeling tasks. Nico Christie is the co-founder of Fundamental Research Labs and the CEO of Shortcut, a cutting-edge AI tool designed to supercharge Excel. Nico’s diverse background spans professional athletics, corporate finance, and AI research. His work at Fundamental Research Labs focuses on building AI that mimics human-like qualities, such as emotional experiences and consciousness. Nico has a passion for both technology and the real-world applications of AI in tools like Excel, making complex tasks faster and more intuitive.Expect to LearnHow Shortcut is revolutionizing Excel for financial modeling with AI.The process behind building digital humans at Fundamental Research Labs.Nico’s journey from professional dunker to AI innovator.How AI tools like Shortcut are transforming the financial modeling landscape.Insights on the future of AI in Excel and the response from companies like Microsoft.Here are a few quotes from the episode:"I just think Excel is the most beautiful design software ever created by humans." - Nico Christie"The goal of the company is to build digital humans, giving AI all of the fundamental human qualities, not just intelligence." - Nico Christie"People who were initially afraid of AI are no longer afraid once they see how it can be used in software engineering." - Nico ChristieFollow Nico:LinkedIn - https://www.linkedin.com/in/nicochristie/Twitter - https://x.com/nicochristie Follow Paul: Website - https://www.thefpandaguy.com  LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguy                Follow Financial Modeler's Corner:  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:15] - Introduction to Nico Christie[02:38] - Worst Model Horror Story[06:32] - Upcoming Projects and Exciting Roadblocks[09:14] - The Journey to Dunking[17:21] - The Power of Excel's Top Buttons[20:17] - Reviewing vs. Starting from Scratch[21:38] - Struggles with Formatting in Model Reviews[32:35] - The Impact of AI Tools on the Profession[37:26] - Favorite Excel Shortcut[39:54] - Financial Models as Decision-Making Tools[42:34] - Wrapping Up

In this discussion, Patrick Daguet, a seasoned finance professional and president of Sharklets, shares his deep insights into the realm of financial modeling. He emphasizes treating models as decision-making tools and discusses the unique complexities of project finance versus corporate finance. Listeners will enjoy his personal anecdotes, including the joy of working on major infrastructure projects like the Stade de France. Patrick also highlights the importance of continuous learning and curiosity in the field, alongside practical tips for enhancing modeling skills.

Your Average Finance Bro, a humorous figure in financial modeling and a self-proclaimed Goldman Sachs founder, dives into the often serious world of finance with a comedic twist. He discusses why memorability trumps technical accuracy in Excel, sharing funny stories about using spreadsheets in dating. The importance of personal branding, hilarious pranks, and some unconventional networking strategies are also explored. Expect laughs alongside insights as Finance Bro showcases how to present financial models confidently, even with questionable numbers!

In this episode of Financial Modeler’s Corner, host Paul Barnhurst welcomes Dr. Stephen Horan to discuss the fundamentals of financial modeling, the challenges and rewards of teaching finance, and how curiosity and simplicity are central to both education and professional modeling. Dr. Horan draws on his extensive experience as a finance professor and former Managing Director at CFA Institute, offering unique insights into the intersection of academia, practical modeling, and credentialing.Dr. Stephen is a finance professor at UNC Wilmington and former Managing Director at the CFA Institute. He has over 30 years of experience in academia and industry, has authored award-winning research, and co-wrote Strategic Value Investing, featured on Warren Buffett’s reading list. His work bridges theory and practice in finance education. Dr. Horan is also a sought-after speaker and serves on editorial boards for leading finance journals.Expect to LearnWhat makes a model readable and useful and why fundamentals matter.How to teach financial modeling in a way that’s active and practical.The difference between book knowledge and real-world application in finance.Insights into CFA Institute’s evolution toward practical skills and global relevance.The mindset and skills students need to transition from learning to doing.Here are a few quotes from the episode:"Curiosity is the skill I had to learn and it’s the one that’s helped me most in my career." - Stephen Horan"Give someone the experience of building a model and solving problems. That’s the real education." - Stephen Horan"The ability to explain how you built a model is more powerful in an interview than listing courses on a résumé."  Stephen HoranFollow Stephen:LinkedIn - https://www.linkedin.com/in/stephenhoranphd/Twitter - http://twitter.com/StephenHoranCFAFollow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:07] - Guest Introduction [04:19] - Modeling Horror Story [10:41] - Bridging Theory and Practice [13:31] - Power of Teaching [17:55] - Learning by Modeling [26:23] - CFA Institute Insights [35:07] - Favorite Excel Shortcut [39:36] - Rapid Fire Round [46:02] - Final Thoughts and Contact

In this episode of Financial Modeler’s Corner, host Paul Barnhurst speaks with Janice Shade and Michael Tapia about the intersection of sustainability, financial modeling, and education. They share the behind-the-scenes creation of a unique MBA course focused on sustainable finance and modeling at Bard College. The episode dives into horror stories from the modeling trenches, highlights the challenges of teaching complex topics in an accessible way, and explores the future of financial education and tools.Janice is a systems entrepreneur and finance educator with over 30 years of experience. She has worked with both for-profit and nonprofit ventures, focusing on democratic access to capital and economic justice. Janice is also the author of Moving Mountains and teaches finance at Bard’s MBA in Sustainability program. Michael transitioned from the fitness industry into sustainable finance. With an MBA in Impact Finance from Bard, he co-developed and co-taught a financial modeling course that incorporates ESG data and sustainability into traditional financial analysis. Michael is passionate about inclusive, community-driven investment strategies and financial education.Expect to LearnWhat makes a financial model “fit for purpose”, and why complexity isn’t always better.How financial modeling can support sustainability and social impact.Tips for teaching finance to non-finance students and building curriculum from the ground up.The importance of scenario and sensitivity analysis in forecasting.Practical insights on bridging theory and hands-on financial modeling in academia.Here are a few quotes from the episode:"Finance shouldn't feel mystical or exclusive, our goal is to make it approachable and relevant." - Janice Shade"As a former trainer, I saw how performance metrics drove change. Now I see capital can do the same, if used with purpose." - Michael Tapia"Forecasting is hard, and no forecast is ever right. We're just trying to make it less wrong." - Janice ShadeFollow Janice:LinkedIn - https://www.linkedin.com/in/janice-shade/Website - https://innovatecapital.org/teamFollow Michael:LinkedIn - https://www.linkedin.com/in/michael-tapia-Follow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [02:29] - Introduction of Janice and Michael[07:20] - Worst Financial Model[14:04] - Defining a Financial Model[15:18] - Story Behind the MBA Modeling Course[22:43] - Janice’s Key Takeaways from First Cohort[29:34] - Michael’s Course and Podcast Episodes[42:45] - Favourite Shortcut in Excel[43:47] - Creative Excel Uses[47:32] - Rapid Fire Section

In this episode of Financial Modeler’s Corner, host Paul Barnhurst and co-host Carolina Lago explore their experiences with financial modeling and the Advanced Financial Modeler (AFM) certification. They discuss the value of these certifications, the challenges of studying for them, and how these programs can improve financial modeling skills. They also provide helpful tips and insights into preparing for the Chartered Financial Modeler (CFM) certification.Carolina is a financial modeling and FP&A specialist with over 20 years of experience. She holds the Advanced Financial Modeler (AFM) certification from the Financial Modeling Institute (FMI) and is working toward the Elite Certified Financial Modeler (CFM) credential. Carolina is passionate about teaching financial modeling and helping professionals use financial models to make better strategic decisions. Her workshops focus on best practices, scenario analysis, and providing businesses with the tools needed to navigate financial challenges.Expect to LearnThe definition of a financial model and how to differentiate it from other types of business models.Tips for studying for the AFM and CFM certifications, including managing time effectively and balancing models as you work.Carolina’s experience preparing for the AFM and how to build financial models quickly under pressure.The importance of practice in financial modeling and how to improve speed and efficiency.The differences between the AFM and CFM certifications and why both are valuable for financial modelers.Here are a few quotes from the episode:"Even if I don’t pass the first time, I will have already succeeded by learning new techniques and improving my skills." - Carolina Lago"You need to be resourceful and think quickly when preparing for the CFM. It’s about adapting to complexity in multiple areas." - Carolina Lago"A financial model is anything that has inputs, calculations, and outputs, but at the same time answers a business question." - Carolina LagoFollow Carolina:LinkedIn - https://www.linkedin.com/in/s-carolinalago?originalSubdomain=chWebsite - carolinalago.comCourse Tactic On-Demand: https://tacticfinancial.com/financial-model-for-you/newsletter:  https://pages.tacticfinancial.com/thetacticalroomFollow Paul: Website - https://www.thefpandaguy.com   LinkedIn - https://www.linkedin.com/in/thefpandaguyYouTube - https://www.youtube.com/@thefpandaguyFollow Financial Modeler's Corner  LinkedIn Page- https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true  Newsletter - Subscribe on LinkedIn-https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984Sign up for the Advanced Financial Modeler Accreditation Today and receive 15% off by using the special show code ‘Podcast’. Visit https://bit.ly/497oAqW and use the code “Podcast” to save 15% when you register.  In today’s episode: [08:03] - What is a Financial Model?[12:52] - Fun Use of Excel in Personal Life[17:06] - Learning About FMI[24:41] - Toughest Area in AFM Preparation[28:19] - Advice for AFM Exam[38:07] - CFM Difficulty and Value[42:36] - Broken Spreadsheet Joke[44:56] - Wrapping Up the Episode