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Model Build

Model Build

A financial model allows a business to forecast future financial performance based on key business drivers.

A financial model forecasts future financial performance based on key business drivers.

A financial model allows a business to forecast future financial performance based on key business drivers, key performance indicators, and potential macro and micro sensitivities and scenarios.

Our work enables clients to understand, quantify and predict, the impact of key business decisions, providing them with the ability to shape decisions, maximise opportunities and minimise risk.

Our business modelling team’s capabilities go beyond one-off transactions to enable you to:

Decide: Strategic decision

Deciding the future strategy of the business requires the ability to:

  • Evaluate the potential upside and downside impact of potential strategies, for example new sales channels and multinational operating sites. We develop strategic options modelling, used for evaluating multiple strategic options scenarios and sensitivities quickly.
  • Understand the profitability of new and existing services and products. Our product profitability modelling service focuses on investigating the impact of product sales or service activity on income, operational expenditure and overheads.

Shape: Shaping the business

Shaping the business to meet its future strategy and objectives involves bringing together the right capabilities, assets and expertise through transactional activity and understanding the impact of synergy or separation. We support this process through:

  • Transaction modelling, both of individual assets / business units considered for acquisition or disposal and the overall impact on the merged organisation or joint venture structure. 
  • Debt structure modelling, investigating the impact of debts, covenants and other funding sources on the profitability and sustainability of the business.

Manage: Managing the business

In order to manage the business, as business as usual or in a crisis situation, one must measure the impact of current or future changes in the drivers of business. To do this, organisations need to:

  • Develop realistic forecasts to manage capital spending, cash and regulatory compliance, a need which we serve through business planning and modelling. 
  • Plan to meet the requirements of working capital, analysing your business’s cashflows, debtor and creditor balances and movements.

Combining leading modelling techniques with our range of industry experience, we will work with you to develop a bespoke financial model suitable for your needs. Upon completion and handover of the model, we will continue to work with you throughout user acceptance testing, the training of your staff and the provision of supporting documentation in the form of an assumptions book.

Our team have developed models for clients in a broad range of industries, financial services, aircraft leasing, insurance, energy, healthcare, consumer products and property management. Financial models we have developed are used for the following purposes:

  • Strategic modelling and option appraisals 
  • Business planning and activity based budgeting 
  • Operational and cost optimisation models including workforce planning 
  • Working capital management 
  • Impairment and provisioning modelling 
  • Pricing modelling and business case modelling 
  • Tax modelling (in conjunction with our tax professionals) 
  • Project modelling 
  • Cashflow / discounted cash flow modelling 
  • Transaction and deal modelling models

What's in it for you?

  • Our leading modelling techniques allow us to build robust models in an efficient way 
  • Our broad range of industry experience enables us to produce reporting and analysis outputs specific to your needs 
  • We will integrate effectively with your team and relevant third parties

Contact us today to find out how we can help you with your financial model build needs.

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