How to Analyze Deals Like an M&A Pro: Identify Bad Deals in 5 Min Flat Webinar Replay

Why watch this?

• You Spend too much time on bad deals.?? Deals that cannot be financed.
• You don't have to be a genius to spot good deals.? But you must know how to disqualify bad deals - fast.

Warren Buffett On When Not to Invest

"After 25 years of buying and supervising a great variety of businesses, Charlie Munger and I have not learned how to solve difficult business problems. What we have learned is to avoid them."

Webinar Summary

This conversation discusses how to analyze deals like an M&A professional and identify bad deals in five minutes. The speaker emphasizes the importance of quickly disqualifying bad deals to save time and effort. They discuss the financial report cards to ask for, including income statements, balance sheets, and cash flow statements. The speaker explains the difference between cash accounting and accrual accounting and highlights the importance of balanced books and financial integrity. They also provide examples of red flags to look for in income statements, balance sheets, and cash flow statements. The conversation concludes with a Q&A session.

Takeaways

• Quickly disqualify bad deals to save time and effort
• Ask for financial report cards, including income statements, balance sheets, and cash flow statements
• Pay attention to red flags in financial statements, such as unbalanced books and negative profitability
• Understand the difference between cash accounting and accrual accounting
• Evaluate the risk and reward of acquisitions

Chapters

00:00 Introduction

01:27 Spotting Bad Deals

02:26 Financial Report Cards

03:25 Cash Accounting vs. Accrual Accounting

04:51 Balanced Books and Financial Integrity

06:20 Analyzing Income Statements

10:07 Understanding Balance Sheets

11:32 Red Flags in Balance Sheets

13:57 Analyzing Cash Flow Statements

19:31 Red Flags in Cash Flow Statements

20:29 Examples of Bad Deals

30:03 Risk and Reward in Acquisitions

32:31 Q&A Session