Excel Models Used in Transaction Services

Excel is the primary analytical tool in Transaction Services. Not the only one, but the dominant one. Understanding which models are used and how they're built is both practically useful and directly relevant to interviews.

The P&L analysis model

The foundation of any FDD engagement. This model takes the company's historical income statement data (typically 3-5 years) and structures it for analysis:

• Revenue, gross margin, EBITDA — each on a full-year basis and as a % of revenue.
• Year-on-year growth and margin comparisons.
• Monthly breakdown where available (critical for seasonality and run-rate analysis).
• Commentary-ready format that feeds directly into the report.

Key Excel skills needed: structured table formatting, percentage calculations, YoY delta formulas, conditional formatting for anomalies.

The EBITDA bridge / adjustment schedule

The QoE core output. Each row represents one adjustment:

The model links each adjustment to a source document reference and feeds a consolidated bridge chart.

Key Excel skills: structured data entry, SUM formulas, pivot-ready layout, drop-down categorisation.

The working capital model

Monthly NWC data across 24-36 months, with:

• DSO, DPO, DIO calculated automatically for each period.
• NWC in absolute terms and as a percentage of revenue.
• Rolling 12-month average (the normalised NWC).
• Seasonality chart showing the NWC profile through the year.
• Anomaly detection: months more than 1 standard deviation from the mean are flagged.

Key Excel skills: AVERAGE, STDEV, DATE functions, chart creation, dynamic range references.

The EV to Equity bridge model

A structured calculation that takes an Enterprise Value input and produces an Equity Value:

• Each line of the bridge is a separately labelled cell (never hardcoded totals).
• Debt-like and cash-like items have supporting detail in adjacent cells.
• NWC adjustment links to the NWC model output.
• Sensitivity analysis shows the equity value under different net debt scenarios.

The margin analysis model

For engagements with segmental data (by product, customer, geography), a dedicated margin model:

• Revenue and gross margin by segment.
• Contribution to total company margin.
• Year-on-year evolution.
• Often uses pivot tables from a raw transaction-level data extract.

Key Excel skills: VLOOKUP / INDEX-MATCH, SUMIF / SUMPRODUCT, pivot tables, slicers.

What interviewers sometimes test

Some firms include an Excel test in their recruitment process. Typical formats:

• A P&L extract to clean and analyse.
• A partially completed EBITDA bridge to complete or critique.
• A NWC data set to normalise.

Even when there's no formal test, mentioning Excel proficiency without being able to demonstrate it is a red flag. Be specific: "I'm comfortable with pivot tables, dynamic SUMIF-based models and building an EBITDA bridge from a GL export."

The programme includes downloadable Excel models across all case studies — so you practise with the actual tools used in live transactions.