Financial models are an integral part of the business decision-making process, enabling organisations to assess the financial implications of commercial decisions with confidence. The construction of a robust financial model is the cornerstone of accurate, informed and timely commercial decision making and forecasting.
We have extensive experience in building financial models to assist you in the following areas:
- Mergers and acquisitions
- Investment decisions
- Budgeting and forecasting
- Major projects
- Commercial analysis
- Building financial models for businesses undertaking an IPO
- Valuation and discounted cash flow models
- Budgeting and financial forecasts for internal/external stakeholder reporting purposes
- Models to support project finance, M&As, MBO’s or LBOs
- Refinancing and equity raising analysis
- Acquisition and business roll up scenarios
- Stand alone operating models including PropCo and OpCo scenario’s
- Finance process improvement and dashboard capability
- Bank and debt analysis
Our approach to financial modelling enables the identification of key value drivers and the assessment of key input variables. Clearly defined input variables provide users with flexibility which, together with clearly defined outputs, ensure that you are able to undertake 'what if' or sensitivity analysis with confidence.
Financial model review
Research has shown that over 95% of financial models contain errors. Having your model reviewed by RSM provides assurance on the mathematical integrity of the forecasts and the reasonableness of the assumptions underpinning the forecasts.
Our approach to model reviews includes an assessment of assumptions and formulae that underpin the model together with a review of outputs and sensitivities. By reviewing the detail of the assumptions and formula, and undertaking a high-level review of outputs, we are able to provide assurance on the flow of data from initial assumptions through to output schedules. In addition, we analyse key sensitivities to provide further assurance on the integrity of the model and to identify any potential funding issues or covenant breaches.
Our reports include a summary of errors identified during our review together with recommendations on the improvement of the structure of the model.
When you need a comprehensive review, we extend the scope of our scrutiny to include tax and accounting, sensitivity testing, and checking the data in your model against the original financing or legal documentation.