Complex accounting or quantitative financial models are powerful tools that allow executives to fully understand the financial and valuation impacts of decision-making on business performance.
Financial models are also a critical tool with respect to assessing investment opportunities and the viability of proposed transactions.
Approximately 90% of financial models contain errors and may exclude key value drivers, which can result in misleading results.
Over time most financial models evolve without well-structured design or integrity checks and often without documentation. Making minor changes can often take a long time and have unexpected consequences.
Our experienced financial modelling professionals are ready to support you by developing:
- Discounted cash flow models
- Comparative company analysis models
- Sum-of-the-parts models
- Leveraged Buy Out (LBO) models
- Merger & Acquisition (M&A) models
- Industry-specific financial models
- Option pricing models
- Corporate finance models for investments, divestments and takeovers
- Project finance models
- Complex budgeting, scenario planning and operational models
- Three way business models
At PKF Corporate Finance, we build financial models that offer a clear view of your business landscape, allowing for realistic budgets, valuations and decision-making to take place. We believe it is important for a model to be robust, flexible, transparent and efficient.
Working together, we can investigate the uncertainties of key business and market drivers, and underlying assumptions.
Our financial modelling process involves:
- Planning – we undertake proper planning in the design and build of the model for longevity, consistency, and practicality, and with a focus on the required outputs.
- Model Integrity Controls – we incorporate version controls and backups, rigorously test the model, build in checks, and protect parts of the model from users making unauthorised changes.
- User input – we work closely with the users of the financial model throughout the build process to ensure that the final model will meet their requirements
- User Training – our handover process ensures that the users of the model are confident to use the model efficiently.
PKF financial modelling and decision support services, help organisations reach their decisions regarding strategy, restructuring, financing (debt and equity), grant applications, capital expenditure, mergers and acquisitions.
Model review process
We offer support with model validation services that seek to provide assurance to modellers, investors and other interested parties of model accuracy, logical integrity and internal consistency
Our model review process can be tailored to meet your requirements. This may involve:
- A detailed review of all cells and calculations using model review tools and manual review to check for hard coding, logic of calculations, integrity of referencing
- A parallel model build to provide you with assurance on the integrity of the source model and use of a model that is likely to be more efficient, user friendly and provide better presented outputs than the source model
We have experience in building a wide range of financial models from simple forecast models for smaller businesses to complex long term forecast models incorporating a wide range of inputs and assumptions for multiple businesses and markets.