Specialist Accounting Solutions

Financial Modelling

Financial Models (also known as Financial Forecasts) are forward looking, giving a financial picture of a company’s future Revenues and Profits. A simple financial model will typically just comprise a forecast Profit and Loss or Cash Flow. We go beyond this and prepare Integrated Financial Models, which include:

Profit and Loss / Cash Flows / Balance Sheets
Key Performance Indicators (e.g. Gross Profit %, Net Profit %, Debtor Days).

We also prepare bespoke financial analysis of Financial Data, ranging from job or divisional profitability, to cash flow forecasts.

Financial Models are used in a variety of scenarios, but there are typically five:

Raising Equity / Debt

A company is seeking to raise funds from potential investors (e.g. to raise equity) and / or potential funders (e.g. to raise bank debt). The investors / funders will require a Financial Model to give them a clear picture how much funding is required and when these funds will be deployed.

Business Plans

Management Teams preparing a robust and business plan often want this to be underpinned by a Financial Model, so they have a clear picture what the Business will look like from a financial perspective going forward.

Business Disposals / Acquisitions

It is a standard for Business Advisers to prepare a Financial Model as part of a company’s sale mandate. Acquirers expect this level of detail as part of the sales document (known as an Information Memorandum).

Financial Analysis

Finance Departments are busy and often do not have the time to prepare detailed financial analysis of key financial data. We work closely with your finance staff to establish a clear picture of what is required and then deliver this service.

Supporting the EOT journey

We work regularly with businesses working to become EOTs (Employee Ownership Trusts). Financial models are useful in this situation to calculate the payback period and capability of the vendor loan notes.

We have prepared dozens of Financial Models for our clients and have a process that works every time.

180 Minutes Meeting

Identifying and agreeing key components and establishing key assumptions

Build Phase 1

We prepare first draft of model for your review

180 Minutes Meeting

In depth discussion of all key assumptions and figures, agree changes to be made

Build Phase 2

We prepare second draft of model for your review

Finalisation Meeting

Final review and feedback session

Final Model Prepared and Released

Our typical process takes 3 - 4 weeks

Specialist Accounting Solutions

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Specialist Accounting Solutions

Financial Modelling