Financial models and financial modeling for business

Financial models - transparent, auditable and ready for investment decisions

A good financial model is not a collection of formulas in Excel. It's a tool that allows you to ask tough questions and get reliable answers: Is this investment profitable under other assumptions? How do results change with a 3% margin decrease? When does the project start generating positive cash flow? What happens to liquidity if a key customer leaves?

A financial model designed by someone who understands corporate finance and knows the limitations of the tool is worth many times more than one hastily built by someone who "knows Excel."

What financial models are we building?

- DCF, LBO and business valuation models using the income and comparison methods. They form the basis of analyses before a potential acquisition, sale or restructuring of a group.
- Financial models for new ventures (for new projects, start-ups, expansion of existing operations or entry into a new market). They include projections of income statement, balance sheet and cash flow, with full scenario analysis and sensitivity assessment of key parameters. Such investment models support discussions with investors, banks and private equity funds .
- Banks, funds and investors expect models that meet specific standards and answer specific questions from the financing institution. We build models that reduce negotiation time and reduce the number of rounds of questions.
- Instead of simplistic percentage assumptions, we build models rooted in the customer's operational reality: quantities of inputs to production, cost structure per unit, project schedules, seasonality of sales. Such models enable true sensitivity analysis - not "What if revenues fall by 10%?" but "What if the price of raw material rises by 15% while delaying the contract by a quarter?". We have realized models for wind farms, pharmacy chains, IT companies, manufacturing plants and real estate portfolios. We build financial models for various industries, tailored to the specifics of the business and the requirements of investors or financing institutions.
- Liquidity analyses, debt conversion models, operational restructuring scenarios with financial consequences. TOPI is used, among other things, in verifying the compliance of state aid with market rules.

How do we work on financial models?

All elements of our financial models are parameterized - every assumption is public, separated from calculations and discussed with the client before finalization. We provide models in Excel without blocking formulas and without hiding data. The client gets a tool that he can update himself, modify scenarios and submit for external verification.

Once the model is delivered, we discuss its logic and sensitivities with the client - so that decisions are based on an understanding of the model, not blind trust in numbers.

FAQ

- A financial model is an analytical tool used to forecast a company's performance, evaluate investments or make strategic decisions. It most often includes forecasts of the income statement, balance sheet and cash flow.
- A financial model is worth preparing before a major investment, raising financing, M&A transaction, restructuring or entering a new market. Professional financial models help to assess the profitability of a project, the level of risk and the impact of various business scenarios on the company's performance.
- Investment models are used to assess the profitability of new ventures, investment projects or business development. They enable scenario analysis and risk assessment under various assumptions.
- The process includes business analysis, identification of key operational drivers, construction of assumptions, financial modeling, scenario analysis, and discussion of results with the client.
- Yes. We provide the financial models in a fully editable form, with no formula locks and no data hiding, so that the client can update the assumptions and scenarios themselves.