Compiled by Ben Chutz on 12/11/2024

Read more: The strategy I used to create this document

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Disclaimer

All content in this document was generated with the assistance of ChatGPT, an AI language model. While every effort has been made to ensure accuracy and relevance, the information should be independently reviewed and validated before use in decision-making or professional applications.

Full chat transcript can be found below:

https://chatgpt.com/share/6759e4de-85e0-8000-a469-fea959d36e4b

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This document provides a comprehensive guide for creating a pro forma to support a small business management buyout (MBO). It includes a detailed prompt designed to enlist expert guidance and insight from ChatGPT, along with step-by-step instructions for effectively collaborating with ChatGPT to generate all required elements of the pro forma. This guide is intended for use by anyone seeking to develop an actionable, data-informed financial model and associated materials, even when historical data is limited or vision-driven assumptions are required.

Here’s a step-by-step plan for engaging with ChatGPT to ensure you maximize its support and produce a comprehensive pro forma for the management buyout.

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Prompt for ChatGPT

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Step 1: Provide the Initial Prompt

• Copy and paste the detailed prompt you’ve created into ChatGPT.
• Ask ChatGPT to confirm its understanding of the context, objectives, deliverables, and instructions.
• If any part of ChatGPT’s response indicates misunderstanding, clarify or restate the relevant details before proceeding.

Step 2: Define the Scope of the Pro Forma

• Begin by breaking the task into smaller, manageable components (e.g., income statement, cash flow statement, scenario analysis).