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Financial Modelling
Leveraging our experience and expertise, we craft bespoke models to forecast and analyse financial performance, evaluate investments, and support key decisions.
Financial Modelling services –
customised for better decision-making
We offer specialised Financial Modelling services to provide our clients with dynamic tools to enhance their decision-making and business performance.
Our team works closely with our clients to develop customised models and conduct in-depth analysis and evaluation to support informed decision-making.
Our approach involves:
Understanding client objectives
We begin by understanding the financial and investment decisions, goals, challenges, and financial intricacies that our team needs to address in the design and build of a customised financial model for our clients’ businesses.
Tailored model development
Using our expertise and experience, we create unique/tailor-made/ customised financial models that address our clients’ objectives.
Interactive dashboards
We design interactive dashboards within the models, providing a user-friendly interface to explore and visualise data.
Continuous refinement
We work collaboratively with clients to refine and update the models as the business evolves, ensuring they remain relevant and effective.
Customised Models
We understand that every business is unique, which is why we develop customised financial models tailored to the specific needs and objectives of our clients.
Types of models
Capital Budgeting / Project Appraisals / Investment analysis
Designing and building a financial model that can assess the feasibility of capital expenditure projects/investments. This model would include customised built-in inputs/assumptions and would generate the key metrics that businesses evaluate in such cases, which include the projected cash flows and profitability, Net Present Value (NPV), Internal Rate of Return (IRR), and Project Payback period for informed decision-making.
Once the customised financial models are developed, these can be given to our clients as a tool to be used in their business. We are also able to assist our clients with analysing and evaluating the data generated from the financial model. (See service offering under Analysis and Evaluation.
When is it usually required?
Businesses typically conduct capital budgeting exercises and investment analyses to evaluate the economic feasibility of major projects, investments, or significant capital expenditures such as new plants or equipment.
It’s a best practice to perform this evaluation before significant spending or investment to determine the value and contribution of the investment, its comparison to other investments, and how it aligns with the business’s benchmarks and targets (such as internal hurdle rates, Weighted Average Cost of Capital (WACC), and profitability targets).
In cases where a loan from a financial institution is being considered to fund the investment, a capital budgeting analysis can be particularly valuable. It helps assess projected cash flows (inflows and outflows) against various funding options and the cash flows required to service that funding obligation.
Scenario analysis
Evaluating various scenarios to assess potential outcomes.
Sensitivity analysis
Testing the impact of different variables on financial outcomes.
Forecasting
Predicting future financial performance based on historical data, market trends, and business assumptions.
Cash flow modelling
Developing detailed cash flow projections for short-term and long-term planning.
Upon completion of the customised financial models, we furnish our clients with these as operational tools for their businesses.
Additionally, we provide comprehensive support in analysing and evaluating the data derived from these financial models.
For further details, refer to our service offerings under Analysis and Evaluation.
Analysis and Evaluation
Our team is able to conduct analysis and evaluation on data generated from financial models to extract meaningful insights.
This includes:
Performance analysis
We assess key financial metrics and indicators to evaluate their performance.
Decision support
We provide reports and presentations based on the analysis with any actionable recommendations and insights identified to support strategic decision-making.
Investment evaluation
For investment opportunities, we conduct comprehensive analysis to assess potential returns, Net Present Value (NPV), Internal Rate of Return (IRR), and Project Payback periods
Scenario testing
Using the developed models, we simulate various scenarios to understand the potential impact of different strategies and decisions.
Interpretation of results
Our experts interpret the results of the analysis, translating complex financial data into clear, understandable insights for clients.
What are the advantages of our Financial Modelling services?
Enhanced decision-making
We offer two options to aid clients in enhancing decision-making:
- Development of a tailored financial model or tool, seamlessly integrated into their daily business operations and decision-making processes.
- Comprehensive service encompassing both the construction of a sophisticated financial model and the provision of expert analysis and evaluation, as previously outlined.
The selection between these options hinges on the intended use of the model and the specific requirements of our clients.