Welcome to Financial Modeler's Corner (FMC) where we discuss the art and science of financial modeling with your host Paul Barnhurst. Financial Modeler's Corner is sponsored by Financial Modeling Institute (FMI), the most respected accreditations in Financial Modeling globally. In this episode, Paul Barnhurst is joined by Chris Reilly, who is the founder of Financial Modeling Education. Chris spent many years working in private equity, and today, he runs his own business focused on providing financial modeling education and financial modeling consulting services.   Chris is very passionate about Financial Modeling and helping others learn to build robust financial models focused on the 3-financial statements.   Listen to this episode as Chris shares: The worst model he ever built; hint it involves using his phone :)His journey and background into ModelingThe importance of simple, uncomplicated model designHow being a part of a financial modeling community like FMI can help modelersThe revolver approach for managing cash and why it is important in modelingThe benefits and challenges of using EBITDA to value a companyHis position on controversial modeling issues, including circular references, dynamic arrays, modeling standards, and more Sign up for the Advanced Financial Modeler Accreditation or FMI Fundamentals Today and receive 15% off by using the special show code Podcast. Visit www.fminstitute.com/podcast and use code Podcast to save 15% when you register.   Follow Chris:     Website - https://www.financialmodelingeducation.com/ LinkedIn -  https://www.linkedin.com/in/chris-reilly-mission-capital/ Newsletter -  https://financialmodelingeducator.com/Follow Financial Modeler's Corner LinkedIn Page & Subscribe to NewsletterLinkedin Page -  https://www.linkedin.com/company/financial-modeler-s-corner/?viewAsMember=true LinkedIn Newsletter - https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7079020077076905984 Follow Paul: Website - https://www.thefpandaguy.com/ LinkedIn - https://www.linkedin.com/in/thefpandaguy/ Instagram - https://www.instagram.com/thefpandaguy/ TikTok - https://www.tiktok.com/@thefpandaguy Twitter - https://twitter.com/TheFPandAGuy YouTube - https://www.youtube.com/@thefpaguy8376 Quotes: “ A poor design leads to a poor output. ”   “ Schedules feed the structure. Once you have that dialed in your head you can build whatever you want. ” “ It’s nice to have a community where you can get some live feedback on your search as opposed to going down the internet rabbit hole. ” “To learn to be a modeler you need to model. Spend time finding ways to improve your modeling skills.” In today’s episode: (00:22) Intro; (00:47) Welcoming Chris Reilly; (01:00) The worst financial model Chris has ever seen ; (03:01) Chris’s takeaway from the worst financial model ; (05:56) Chris ’s background; (07:40) What Chris wished he had known that he knows now; (11:52) FMI’s Premier Modeling Community; (14:33 - 15:20) Validate your Financial Modeling Skills with FMI’s Accreditation Program (ad); (15:21) Hardest concept for people to grasp; (18:23) Reasons why balance sheets do not work; (20:00) The Revolver Approach; (21:48) The most important skill to build a Financial Model; (23:22) The value of EBITDA and its pitfalls; (29:07) Rapid Fire; (31:35) Chris’s take on Circular References (33:23) Nugget on how to become a better modeler; (36:36) Connect with Chris; (37:48) Paul’s best picks- how Chris learned from his initially not so perfect models and how those mistakes helped him become the best educator. (38:56) CPE Credit with this episode; (39:07) Outro.   Go to https://earmarkcpe.com , download the app, take the quiz and you can receive CPE credit.