FMVA Study Material — Digest What FMVA covers (high level)
Financial Modeling: building integrated forecast models in Excel (income statement, balance sheet, cash flow, supporting schedules). Valuation: DCF, comparable company (trading comps), precedent transactions, LBO basics, and relative valuation adjustments. Accounting & Finance fundamentals: working capital, revenue recognition, deferred taxes, non-recurring items, lease accounting, EBITDA vs. cash flow. Excel skills & best practices: shortcuts, formula auditing, named ranges, error checking, model structuring and presentation. Financial analysis & KPIs: margins, growth rates, ROIC, ROE, leverage ratios, coverage ratios. Scenario & sensitivity analysis: data tables, scenario tabs, Tornado charts, Monte Carlo (conceptual). PowerPoint & storytelling: summarizing models, charts, executive summaries, investment recommendations. M&A and corporate finance topics: acquisition models, synergies, purchase accounting, financing mixes, earnouts. Professional skills: ethics, client communication, structuring deliverables.
Key study areas and actionable steps
Core accounting refresh (1–2 days)
Focus: link between IS, BS, CF. Action: Recast a simple 3-statement example (see example below).
Build a base-case 3-statement model (3–4 days)
Focus: assumptions, drivers, schedules (debt, fixed assets, D&A, working capital). Action: Start with last 3 years of historical data, project 5 years forward, ensure balance sheet balances. fmva study material pdf
Valuation methods (2–3 days)
Focus: DCF, trading comps, precedent transactions. Action: Value one company using all three methods and reconcile differences.
Sensitivities & scenarios (1 day)
Focus: key drivers (revenue growth, margin, WACC, terminal multiple). Action: Create a 2x2 sensitivity table and 3 scenarios (base, upside, downside).
Presentation & deliverables (1 day)