Financial modelling refers to the creation of (complex) models for mapping business situations in light of interdependencies. The most common application case for financial modelling is the creation of integrated corporate planning – consisting of balance sheet, income statement and cash flow statement. As a rule, financial models are created by using Microsoft Excel, but increasingly specialized planning tools are also being used.
Areas for the Application of Financial Modelling
Financial modelling is used in a wide variety of corporate situations:
- Investors such as private equity or venture capital investors demand integrated corporate planning for an evaluation of the company.
- Lenders require multi-year corporate planning for the general assessment of the repayability of loans and the sustainability of the interest burden or, in particular, for a debt-to-equity swap
- Shareholders or management have a company plan drawn up as part of an M&A transaction to sell the company.
- Treasury must have a reliable basis for assessing the current and future liquidity situation.
- Break-even analyses should represent the necessary gross profits that are required for existing or future cost structures in order to operate profitably.
- Make or buy decisions need a reliable numerical basis in order to be able to represent the effects on costs of internal or external awarding of services.
FAS AG Support in Financial Modelling
In financial modelling we offer you three basic categories of our services:
- Financial modelling: Creation of financial models based on MS Excel by using VBAs or special planning tools
- Financial model review: Review of financial models for plausibility and mathematical correctness, similar to financial due diligence
- Financial model coaching: Support in the creation of financial models through coaching based on our experience in the creation of numerous financial models
If you are interested or have any questions, please contact us.