Financial Models

Building Dynamic Financial Models that Calculate Results

When evaluating alternative business models, comparing financial strategies or working through complex problems, it is beneficial to build dynamic financial models to calculate results. Properly designed financial models provide a quick and efficient method of determining the outcome of different strategies or variables with minor changes in assumptions.

Developing pro-forma financial statements

Since emerging growth companies are typically in the early stages of development, their present value is heavily dependent on future sales and earnings projections. Building pro forma financial statements is required to complete a comprehensive business plan, to estimate the present value of future cash flows and to aid in funding efforts.

Comparison valuation and discounted cash flow analysis

When seeking capital or evaluating a merger or acquisition, calculating the fair value of your corporation is a critical component. Two common methods of determining fair value include:

  1. Calculating different valuation ratios such as price-to-earnings, price-to-EBITDA or price-to-sales and comparing these values to similar companies or industries
  2. Discounting future cash flows to determine a net present value

We have extensive experience creating complex financial models and will provide valuable insight to emerging growth company executives estimating future results.