Deal-Making 101: How Middlemen Earn by Linking Institutions and Investors

This financial model is a comprehensive toolkit designed to help deal facilitators—who connect institutions looking to sell loan portfolios with interested investors—plan, forecast, and analyze the profitability and liquidity of their operations. From projecting deal flow and fee income to managing working capital needs and staffing costs, the model provides a dynamic, customizable framework for anyone aiming to understand or optimize this middleman business model.
Key Highlights of the Model

• Modular Design: Covers up to three asset classes or portfolio types, each with unique revenue and cost assumptions.
  

• Complete Financial Statements: Generates monthly and annual Income Statements, Balance Sheets, and Cash Flow Statements for a full 5-year horizon.
  

• Timing Assumptions: Accounts for lead times and pre- vs. post-closing expenses, helping forecast cash requirements accurately.
  

• Flexible Fee Structures: Allows for upfront fees, ongoing management fees, and optional buy-and-resell profit margins.
  

• Working Capital Management: Captures bridge financing and interest expenses to ensure sufficient cash flow before deals close.
  

• FTE Scaling: Dynamically adjusts staffing costs based on the number of deals, including salaries, benefits, and payroll taxes.
  

• Overhead & Fixed Costs: Separates out non-scalable expenses (like rent, software, and general administrative costs).
  

• Equity Planning: Solves for minimum equity required and models different investor participation options.
  

• Valuation Metrics: Includes DCF analysis, IRR, exit multiple calculations, and optional trailing 12-month EBITDA exit valuation.
  

• Extensive Visualization: Features 22 charts and KPI dashboards to quickly track performance and identify trends.
  

• Optional Portfolio Purchase: If the user wants to buy and resell portfolios, the model factors in purchase price, carrying costs, and profit recognition.