Real life detailed example of absurd false precision in PE modeling for billion dollar acquisitions
I’m working on a model for a shipyard that generates a percentage of revenue by unloading ships
I model the cost of people unloading to correlate to the amount of tons
ex. If last year 100 tons were unloaded and salaries for unloaders were $100k it’s $1k per additional ton unloaded
VP made me fix it to insert cliffs for hiring new unloaders
ex. We don’t add any salary until we unload 10 more tons, then we hire another guy for $10k
Principle made me fix it to account for the difference in manager salaries
Ex. We add $8k for each 5 non managers and $10k more every 5th guy
Finally we get to the meeting with an MD who plays around with the model and ups volume by 1%
This makes EBITDA go down he says “this model is clearly not working”
Principal looks at VP, VP looks at me
I explain it went down because it’s the unlucky 1% increase that adds a new laborer and a new manager to costs
MD says EBITDA should never go down when volume goes up and tells me to fix
I put it back to the original way and we never speak of it again
But we wasted 2 days working on a completely irrelevant problem and this is the norm
“Respect for taxpayers” is lighting $75 million on fire to make traffic very bad for a year, then not discernibly better afterwards, and endangering tens of thousands of people in the process.
Truly bottom of the barrel, lowest common denominator stuff.
As of today, Nov. 9, we have officially begun
the 14th year of Eglinton Crosstown construction.
Happy anniversary, @Metrolinx!
Congratulations @Crosslinx!
The 1.2 per cent of people who commute by bike shouldn’t be clogging primary roads for the over 70 per cent of people who drive. It’s just common sense.
The University bike lanes that Ford says he’s ripping out were specifically requested by the CEOs of the hospitals they front so that their nurses, doctors, and staff could get to and from work safely.
💥ACTION ALERT! Are you horrified at Doug Ford's attack on #RoadSafety? Join us Wed 5:00pm Queen's Park! Tell Doug Ford to stop trying to maximize #RoadViolence death and severe injury. Last year, 616 Ontarians killed + 36,090 injured in preventable crashes. #SafeStreetsSaveLives
"The right tool for the job..." isn't always a big-ass honking pick-up.
Picking up groceries with an F-150 is like...
Cracking nuts with a sledgehammer
or Making toast with a flamethrower.
6 out of 10 trips are under 5 miles; usually a smaller vehicle will do...
@nachkari Can’t speak for the rest of the pro-bike crowd, but I simply see it as a more efficient method of commuting.
I have a car for when I need to leave the city, but within the city limits I prefer a bike and prefer bike lanes