Financial Modelling

We design and build fit for purpose financial models to support decision making. We understand the need to minimise complexity without compromising accuracy. As such we focus on those areas that give a material movement to either profit or cash.

We also recognise that the model may need to be updated during the course of the transaction, and so we ensure there is an efficient update for actuals process which can be owned and run by Management.

Whilst each model we design and build is bespoke, we adopt some common core principles:


  • Each model is based on the Company’s source data and designed so it can be maintained by the management team
  • Both historic and forecast data is organised in a cube which enables easy review of outputs and trends
  • The balance sheet includes “T-accounts” so cash is a driven not a balancing number,
  • Real time sensitivity analysis with an automatic bridge to base case

The model will typically include:


  • Monthly driver-based Integrated P&L, Balance Sheet and Cash flow forecast
  • Capacity for 5 year financials (2 year historics, current year and, 3 year forecast) on a consistent basis
  • P&L and Balance Sheet drivers and assumptions in one location
  • User friendly outputs and lookup graphs to enable easy review and sense check of the forecasts, key trends and KPIs
  • The ability to run multiple cases within the model
  • Alternative funding structure scenarios where relevant
  • Funding and covenant module with clear covenant definitions and traffic light reports and the ability to include new sources of debt
  • Appropriate handover to the Management Team