Financial Modelling Services

Financial Modelling Services

Financial modelling is used to forecast the future financial performance of a company.

Financial models are a set of assumptions regarding the future conditions of a business or project that drive projections of its earnings, revenue, balance sheet accounts and cash flow.

Most financial models are used in running scenarios to test the sensitivity of major outputs to various input assumptions and to forecast financial results with higher confidence.

Financial models are designed to show an organization’s past and also future financial performance.

Financial models are used for a wide range of decision making including those related to mergers, acquisitions, raising of capital, internal planning, budgeting, forecasting, investments and valuations.

The importance of financial modelling is mainly rooted in its capability to enable better financial decisions within a firm.it is widely used by organizations for future planning. By stimulating the impact of important variables, financial modelling allows for scenario preparation so that organizations know its course of action in various situations that may arise.

Our Financial Modelling Service Offerings

  • Planning and Reporting

No matter the industry you operate in, we offer business plan services that include detailed and accurate financial projections to help your business scale.

  • Business Valuation

Our records speak for us. Over the years, we have assisted several businesses with decisions about mergers, acquisitions, public offerings, and other financial transaction.

  • Industry-specific Financial Models

Our team of professionals have experience in providing financial modelling services across industries such as oil and gas, telecommunications, manufacturing, retail, education, pharmaceutical, entertainment, service-based industries etc.

  • Scenario Analysis

We provide scenario analysis services that enable organizations to get a better understanding of exposure to various markets by evaluating possible events that could come up in the future.

  • Cash flow Analysis

Whether you are a mid-size or large organization, we will help you prepare a detailed and comprehensive view of the organization’s financial standing.

  • Pro-forma Financials

For your income statement, balance sheets and cash flows, we help your organization to prepare the needed financials to details.

  • Budget Forecasting

Our budget forecasting services help businesses compare projected results with actual results. Our track records speak for us. We have provided budget forecasting services across different industries.

Financial models are used to project the performance of a company, project, business or any other financial investment and it helps to curb the risks and make better decisions.

We offer Internal Audit, Risk and Compliance Services

Areas where financial model is useful

Profitability Planning: One of the uses of financial modelling is to optimize the day to day operations of a firm. This type of models is used by companies to ascertain how they can deploy their resources most effectively. Usually, such models enable companies to decide on an optimal product mix which would enable maximum profitability.

Forecasting and Planning: Creating a financial model for business helps to think about and list down the drivers which impact the various aspects of the business. It also takes into consideration the various changes that may happen internally as well as in the external environment.

Liquidity Planning: Financial models enable companies to keep track of their solvency. These models take into account factors such as interest rates and currency valuations. Financial models also account for loans which may have a call option and hence may exert pressure on the finances of the firm in the short term. Financial models could simulate extreme economic conditions to see whether the companies would continue to remain solvent if these conditions became a reality. They are also used to analyze investments such as stocks and bonds.

Credit Planning: Financial models help companies decide how much credit they are willing to extend. Information from credit rating agencies is used.

Valuation of Companies: Investment banks and private equity firms also use complex financial models to arrive at a valuation for entire companies. It is also useful when analyzing mergers, acquisitions and other corporate development opportunities.

We also offer Change Management Services 

Benefits of Financial Model to Your Firm

Provision of instant answers

Financial models are designed in such a way that when there is a change in value, all the related values and formulae will also change.

The implication of this is that it helps in providing instant answers to things that may take months or even years to take place. This is of great benefits to businesses because they will know what to expect when they make certain decisions.

Risk minimization

Financial modelling help projects as well as businesses to lower financial risks. This is possible because business owners will know that if they take a particular action, then this is what is likely to occur as a result of that action. With financial models, businesses can know the impact of marketing campaigns and the cost of entering a new market, the effect of price changes on the business and much more.

Medium of assessments

Financial models serve as a medium of assessment by providing monthly assessments of the actual performance of a company versus what the budget or plan predicted it would be. This is crucial feedback, especially for small business owners or start-ups that are not used to the planning or budget process. Financial models in effect help business owners to make adjustments that will ensure the business rakes in profits at the end of the day.

Shareable

Financial models can easily be shared with other members of your organization who are situated in various locations. This helps in enhancing input and analysis because you get feedback from different people in your organizations.

Consistent results

Results produced with financial models are consistent. Whatever action that a business implement will always produce similar results no matter the period the action was taken. For example, a decision to take up a loan by a business will still increase capital for expanding the business, whether the business owner decides to take the financing today or after 5 years. All these would have been captured in the financial model. Besides, the risks involved in taking the loan will still be the same.

It has been established that financial models are crucial assets for any company or business and having a skilled expert work for you will make things easier for you. With the right professional, you will be able to scale your business to greater heights.

For more information regarding our financial modelling service offerings, please call 08023200801 or email us at enquiry@matogconsulting.com. You can also fill the contact form below and we will get in touch with you.

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