Creating New Skills

Step-by-step guide for adding new skills to the Excelor system.

---

Quick Start

1. Create a new .md file in excelor/spreadsheets/skills/
2. Add YAML frontmatter with name and description
3. Follow the standard template structure
4. Test with sample prompts

---

Step 1: Choose Skill Type

Single-Sheet Skill

Use for simple, self-contained models:

• Quick valuations
• Screening tools
• Single-purpose calculations

Naming: [model_type]_skill.md

• dcf_skill.md
• comps_model_skill.md
• altman_zscore_skill.md

Multi-Sheet Skill

Use for complex models with multiple worksheets:

• Full financial models
• M&A analysis
• Due diligence workbooks

Naming:

• Overview file: [model]_overview.md
• Component files: [model]_[##]_[component].md

Example (M&A Model):

ma_overview.md
ma_01_transaction_assumptions.md
ma_02_sources_uses.md
ma_03_purchase_price_allocation.md
...

Industry-Specific Skill

Use for sector-tailored templates:

Naming: three_statement_[industry]_skill.md

three_statement_saas_skill.md
three_statement_bank_skill.md
three_statement_retail_skill.md

---

Step 2: Write the Frontmatter

---
name: your-skill-name
description: One-sentence description of the skill's purpose.
---

Name Conventions

• All lowercase
• Use dashes between words
• Keep under 30 characters
• Be descriptive

Description Guidelines

• One sentence only
• Start with action verb or model type
• Include when to use it
• Mention key features

Examples:

description: Generate comprehensive Discounted Cash Flow (DCF) valuation models.
description: Build integrated 3-statement models for SaaS companies with ARR-based revenue.
description: Master index for the M&A model, orchestrating creation of all 10 sheets.

---

Step 3: Structure the Content

Follow this outline:

# [Model Name]

## Overview
[What, why, when]

## ⚠️ CRITICAL: Common Errors to Avoid
[Error tables]

## Core Workflow
[Step-by-step process]

## Model Architecture
[Sheet layouts in ASCII]

## Key Formulas
[Formula documentation]

## Formatting Standards
[Styling table]

## Validation Checks
[Checklist]

## Common Triggers
[Keywords]

See SKILL_TEMPLATE_GUIDE.md for detailed template.

---

Step 4: Write ASCII Layouts

Use consistent formatting for sheet layouts:

### Sheet: Assumptions

Row 2: [COMPANY] DCF ASSUMPTIONS Row 3: (blank) Row 4: COMPANY INFORMATION Row 5: Ticker TSLA Row 6: Current Share Price $185.00 Row 7: Shares Outstanding (M) 15,800 Row 8: Market Cap ($M) =C6*C7

Guidelines:

• Show row numbers for reference
• Include sample values
• Show formulas with = prefix
• Indicate blank rows with (blank)
• Use consistent column widths

---

Step 5: Document Formulas

Structure formula documentation clearly:

### Revenue Growth

Revenue_Growth = (Current_Year - Prior_Year) / Prior_Year Excel: =(C4-B4)/B4

### WACC

WACC = (E/V)Ke + (D/V)Kd(1-T) Excel: =C21C10+C22*C15

Include:

• Formula name
• Mathematical notation
• Excel syntax
• Cell reference example

---

Step 6: Define Triggers

Add keywords that will match this skill:

## Common Triggers

**General:**
- "dcf model", "dcf valuation"
- "discounted cash flow"
- "intrinsic value"

**Specific:**
- "multi-sheet dcf", "detailed dcf"
- "dcf with sensitivity"

**Industry:**
- "tech dcf", "saas dcf"
- "healthcare dcf", "pharma dcf"

Best Practices:

• Include common synonyms
• Add industry variations
• Consider misspellings users might make
• Test with actual prompts

---

Step 7: Add Validation Checks

Create a comprehensive checklist:

## Validation Checks

- [ ] Balance sheet balances (Assets = Liabilities + Equity)
- [ ] Sources = Uses (no delta)
- [ ] Terminal value < 75% of enterprise value
- [ ] WACC in reasonable range (7-12%)
- [ ] Growth rates decline toward terminal
- [ ] Sensitivity table shows distinct values
- [ ] All cross-sheet references work

---

Step 8: Link to Overview (Multi-Sheet Only)

For component skills, add reference to the overview:

## Related Skills

This is sheet 3 of the M&A Model series.

| Sheet | Skill File |
|-------|------------|
| 1 | [Transaction Assumptions](./ma_01_transaction_assumptions.md) |
| 2 | [Sources & Uses](./ma_02_sources_uses.md) |
| **3** | **Purchase Price Allocation** (this file) |
| 4 | [Target Financials](./ma_04_target_financials.md) |

---

Testing Your Skill

1. Syntax Check

• Verify YAML frontmatter parses correctly
• Check all markdown renders properly

2. Content Review

• All sections present
• Formulas are accurate
• Layouts are clear

3. Trigger Testing

Test with sample prompts:

"Build a [model type] for [company]"
"Create a [industry] [model type]"
"Generate [specific variant]"

4. Cross-Reference Check

• All linked skills exist
• Overview files list all components
• Numbering is sequential

---

File Checklist

Before finalizing, verify:

• File in excelor/spreadsheets/skills/
• Filename follows conventions
• YAML frontmatter complete
• All 8 major sections present
• Formulas documented with Excel syntax
• Validation checks comprehensive
• Triggers cover common variations
• No spelling/grammar errors
• Tested with sample prompts

---

Example: Minimal Skill

---
name: simple-ratio-analysis
description: Generate quick financial ratio analysis for screening purposes.
---

# Simple Ratio Analysis

## Overview

Quick financial ratio screening tool for investment analysis.

**When to Use:**
- Initial stock screening
- Quick health checks
- Comparison across companies

## Model Architecture

### Sheet: Ratio Analysis

Row 2: [TICKER] RATIO ANALYSIS Row 4: LIQUIDITY Row 5: Current Ratio =Current_Assets/Current_Liab Row 6: Quick Ratio =(Cash+AR)/Current_Liab Row 8: PROFITABILITY Row 9: Gross Margin =Gross_Profit/Revenue Row 10: Operating Margin =EBIT/Revenue

## Key Formulas

### Current Ratio

=B14/B22 (Current Assets / Current Liabilities)

## Validation Checks

- [ ] All ratios calculate correctly
- [ ] No divide-by-zero errors
- [ ] Values are reasonable for industry

## Common Triggers

- "ratio analysis", "financial ratios"
- "quick screen", "stock screen"