There are many types of financial models. Corporate finance teams have traditional financial models such as the three statement model, discounted cash flow model (DCF), mergers and acquisitions (M&A), leveraged buyout model (LBO), initial public offering model (IPO), and more. Private companies may use other financial models such as an ARR snowball, sales capacity model, and sales cycle to new bookings models. These have different levels of complexity depending on their purpose, with models used in equity research and investment banking often being very complex.