Financial Modeling

Financial modeling, or “the numbers”, is usually the backbone of most businesses and transactions.
Our models are built to answer complex questions – but they are not complex models.
Our clients are not Excel experts: they are CEO’s, engineers, geologists, Doctors, entrepreneurs, etc.  Thus we keep the model as simple as possible with no unnecessary long formulae or macro’s.
You have questions re your business, or your forecast cashflow, or re a potential acquisition, or a loan, or re historical data, etc. Our financial modelling answers your questions.
We create models across all industries, and for a wide range of end- purposes, some shown below

Our Services
 – New model Built ” from scratch” We have template models available for sale, which can easily be amended to suit your business. Or we can build you a new model “from scratch” tailored to your business
 – Rebuilding/refining your existing Model: In some cases, the model is acceptable: structure, flow of logic, and calculations all generally fine, but requires some changes, or simplification, or new business cases added in, or assumptions updated-or all of the above.
 – Model Audit We regularly perform model audits, ranging from a quick “health-check” to a more thorough, detailed audit of every aspect of the model including validation that calculations and inputs match the source documents . We use audit software..and we also use our brain: we are curious, and we ask questions when data doesn’t move in the expected direction. 
 – FPA- Financial Planning & Analysis: We have been helping firms with business planning, cash flow forecasting, scenario analysis for > 20 years
 – Updating models with results, changes in business plans or forecasts, and scenario analysis: We have ASX listed clients who we update their internal models for on a monthly basis (with actuals achieved). We have other clients who regularly send us updates to their business case, for us to update the model to reflect such. i.e. we are “keeper of the model” for tfirms who have little to no finance team.
 – Three Way Financial Statements
 – Writing the collateral:  There is usually a document that emanates from the model- which we can write i.e. Business cases, Board papers, IM’s, Offering Memoranda, Bid Documents, etc. The model is only the tool that conducts the analysis, and arrives at answers: those results then have to be presented in a clear concise manner.

Typical Issues We Find
-Overly complex and difficult to find data, or change data, and create sensitivities. And the more complex and harder to follow a model is – the more potential for errors.
-Has unnecessarily long formulae that could be much simpler, or macro’s which are not needed
-Too many sheets: Difficult to trace formulae: Users have to tab through 10 different tabs sometimes to trace a formula, and by the 10th tab they’ve forgotten where they started.
-Too many sumifs (which sometimes is the result of data spread over too many sheets which could have been combined) i.e. in a recent model we audited there were > 1 million Sumif’s, which wouldn’t be needed if certain sheets were combined into one (and too many Sumif’s also make the model slower)
-Not enough error checks
 – $10million revenue found in 10 minutes: During a recent audit of an ASX miner, in the first 10 minutes we identified> $10m extra revenue from an error:  The model was a typical “bolt-on” where one person created it, and then others added more rows and calculations, such that a revenue discount had been applied in row 1274 of one sheet, and then a new user had again applied a discount in row 2786 of another sheet which had double discounted the revenue. (and the model was unnecessarily large in any case, with too many sheets, (and no error checks) which all contributed to masking this error).  Our identification of this error increased revenue by $10m.

Past Clients
Some past clients we have helped below, with more at
Financial Modeling

Call us today to see how we can assist across Financial Modeling