What does a good financial model look like?
A good financial model is structured, transparent, and easy to audit. Inputs, calculations, and outputs are clearly separated. Assumptions are visible and labelled, formulas are consistent, and there are integrity checks across the three statements. A reviewer should be able to follow the logic without explanations.
Which businesses need a financial model?
Almost every business benefits from a model — from startups raising seed capital, growth-stage companies negotiating with PE / VC, SMEs applying for project loans, to mid-sized groups planning capex, M&A, or new business lines. The complexity scales with the use case.
How long does it take to build a model?
A simple operating model can be built in one to two weeks, while a fundraising or project finance model typically takes three to five weeks depending on the complexity of business drivers, capital structure, and scenarios required. M&A and LBO models can take longer.
Do you build models in Excel or other tools?
Most financial models are built in Excel due to its flexibility and acceptance among investors and lenders. For specific use cases, we also work in Google Sheets, Power Query / Power BI for analytics, and dedicated planning tools where the client prefers.
How is a DCF different from comparable valuation?
DCF (Discounted Cash Flow) values a business based on its own future free cash flows discounted at the cost of capital. Comparable valuation looks at multiples like EV/EBITDA or P/E from similar listed companies or precedent transactions. Most professional valuations use both methods together.
Can existing models be reviewed and improved?
Yes. We frequently review models built internally or by other advisors — checking structure, logic, accuracy, and presentation, and fixing issues such as broken links, hard-coded numbers in formulas, inconsistent units, or missing checks. The output is a cleaner, more defensible model.
What sensitivities and scenarios should a model include?
Typical scenarios include base, upside, and downside, with sensitivities on revenue growth, pricing, key cost lines, capex timing, and financing terms. For project finance, we also include macro variables like interest rates and exchange rates, depending on the project's risk profile.