Financial modelling and budgeting
Our offer includes the preparation of dedicated financial models and budgets for single investments, entire businesses and capital groups.
A tailor-made financial model is the prerequisite of effective business planning, providing information on e.g. capital requirements, capacity utilization, and areas for business optimization.
In addition, a financial model containing cash flow projections is required by credit institutions to obtain investment financing and is a key element to be taken into account by investors considering the viability of a given project.
A financial model is a flexible tool which facilitates the financial planning, ongoing monitoring and evaluation of an investment.
A financial model facilitates a quick change of the forecast variables for key assumptions; this is important because both the internal and external conditions change in the course of the investment. As a result, it is possible to generate updated results on an ongoing basis.
The preparation of a financial model is preceded by the following:
- analysis of the economic environment,
- analysis of the trends and forecasts for the industry,
- verification of model assumptions,
- risk factors analysis
and requires
- preparation of financial forecasts,
- identification of the principal determinants of the results obtained,
- evaluation of investments in terms of profitability and viability.
