Financial model construction
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 of building financial models to assist you in the following areas:
- mergers and acquisitions
- investment decisions
- budgeting and forecasting
- major projects
- commercial 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.