An Analyst / Associate's Checklist

​I wanted to put together a learning plan which tracks useful links / resources to read ahead of starting my PE stint in a couple months.

​Appreciate if the community can provide ideas to improve this list. Hopefully this can also help people be more prepared as they embark on their career in IB / PE.

​I would categorise these into a couple of knowledge areas:

1. ​Financial and Accounting Concepts

2. Financial Modelling

3. Financial Analysis

4. Process / Execution Knowledge

5. Industry Knowledge

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1. ​Financial and Accounting Concepts

   • Thorough understanding of financial and accounting concepts are basic hygiene factors that analysts and associates are expected to be equipped with

   • However, these may oftentimes be neglected / forgotten along the way as we spend 16 hours a day aligning logos

   • Read, read and read to refresh memory on various terms and concepts. Below are a few resources with useful Finance and Accounting 101 materials:

     • Corporate Finance Institute (CFI) provides a useful glossary of financial and accounting terms:

       • https://corporatefinanceinstitute.com/resources/knowledge/accounting/

     • Macabacus is a treasure trove of information:

       • M&A accounting: https://macabacus.com/accounting/types-of-acquisitions

       • Taxes: https://macabacus.com/taxes/considerations

       • Valuation: https://macabacus.com/valuation/enterprise-value

     • Wall Street Prep also has a couple of useful resources:

       • This one on debt is useful: https://www.wallstreetprep.com/knowledge/ultimate-guide-to-debt-leveraged-finance/

       • Breaking into Wall Street has video tutorials for those who prefer to watch and learn: https://breakingintowallstreet.com/biws/kb/

2. Financial Modelling

   • LBO models are the bread-and-butter of any PE analyst / associate

   • However, before diving into building an LBO model, it is important to master the art of building and structuring an operating model

   • Build a standalone model from scratch. Practice makes perfect

     • Modelling best practices:

       • https://www.wallstreetprep.com/knowledge/financial-modeling-best-practices-and-conventions/

       • https://corporatefinanceinstitute.com/resources/knowledge/modeling/free-financial-modeling-guide/

     • Step-by-step guide to building an operating model:

       • https://macabacus.com/operating-model/introduction

       • https://multipleexpansion.com/2020/11/25/standalone-model-public-market-overview/

       • https://multipleexpansion.com/2021/01/03/standalone-model-historical-data/

   • Once comfortable with building a fully linked 3-statement model, it's time to learn the sexy stuff

     • LBO model:

       • https://macabacus.com/lbo-model/introduction

       • https://www.wallstreetprep.com/knowledge/advanced-lbo-modeling-test-4-hour-example/

       • https://breakingintowallstreet.com/biws/kb/leveraged-buyouts-and-lbo-models/

     • Merger model:

       • https://macabacus.com/merger-model/introduction

       • https://www.wallstreetprep.com/knowledge/financial-modeling-quick-lesson-accretion-dilution-model/

3. Financial Analysis

   • This is where you put together your knowledge in financial & accounting and modelling prowess

   • Below are some analysis and useful resources:

     • Types of financial analysis:

       • http://sellsidehandbook.com/2018/09/23/analyzing-financial-statements-and-ratios/

       • https://corporatefinanceinstitute.com/resources/knowledge/finance/types-of-financial-analysis/

       • https://corporatefinanceinstitute.com/resources/knowledge/finance/analysis-of-financial-statements/

       • https://corporatefinanceinstitute.com/resources/knowledge/finance/financial-ratios/

     • IRR & MoM:

       • https://corporatefinanceinstitute.com/resources/knowledge/finance/internal-rate-return-irr/

       • https://www.wallstreetprep.com/knowledge/irr-mom-return/

       • https://breakingintowallstreet.com/biws/kb/leveraged-buyouts-and-lbo-models/cash-on-cash-return-vs-irr/

     • Other analysis

       • EVA: https://corporatefinanceinstitute.com/resources/knowledge/valuation/economic-value-added-eva/

       • ROE: https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-return-on-equity-roe/

       • ROA: https://corporatefinanceinstitute.com/resources/knowledge/finance/return-on-assets-roa-formula/

4. Process / Execution Knowledge

   • Execution work takes up most of our time as a junior deal team member. Apart from being a numbers monkey, we are expected to lead parts of the investment / transaction process

   • Understanding deal mechanics and how to run a process / due diligence would make you a more valuable monkey

     • Private equity investment process: https://www.streetofwalls.com/finance-training-courses/private-equity-training/private-equity-investment-process/

     • M&A sale process:
       https://macabacus.com/mechanics/sale-processes

     • Deal structures:
       https://macabacus.com/restructuring/spin-offs
       https://macabacus.com/strategies/overview

     • SPA negotiations:
       https://macabacus.com/mechanics/agreements

     • Private vs public transactions:
       https://macabacus.com/mechanics/private-vs-public

5. Industry Knowledge

   • For those joining a sector-focused team, getting up to speed with the industry would make you appear more intelligent and save you time when evaluating an opportunity / working on a transaction

   • As I will be joining a consumer-focused fund, I will start by collating knowledge pieces on the Consumer / Retail sectors

     • Sell-side handbook on Consumer & Retail: http://sellsidehandbook.com/industries/consumer-products-retail/

     • Basic overview of the consumer sector: https://www.wallstreetoasis.com/forums/basic-overview-of-the-consumer-sector

     • What you do in the Consumer Retail Group at an Investment Bank: https://www.mergersandinquisitions.com/consumer-retail-investment-banking/

     • S&P Primer on Consumer Discretionary: https://www.spglobal.com/spdji/en/documents/education/education-sector-primer-series-consumer-discretionary.pdf

     • S&P Primer on Consumer Staples: https://www.spglobal.com/spdji/en/documents/education/education-sector-primer-series-consumer-staples.pdf

​Appreciate any contribution / feedback. Will continue to update and refine this post to keep track of useful resources. Thanks!