WGP Global will design innovative and bespoke financial models across a range of industries
A financial model is simply a tool that’s built in Excel to forecast a business’ future financial performance. The forecast is typically based on the company’s historical performance, assumptions about the future, and requires an income statement, balance sheet, cash flow statement and supporting schedules. Financial models are at the heart of all business decisions.
Why are financial models important?
Whether you’re looking to raise finance, buy or sell a business, assess strategic options, or just plan for the future, you’re going to need a forecast, and this will come from a financial model. They are typically built for, and relied upon, to support business decisions.
Good financial models create a picture of the future in a credible and transparent way, with flexible assumptions that can be understood and easily changed to gain insight into the opportunities and risks facing your business. They allow you to explore the financial impact of strategic decisions and support your business plan or investment decision.
How are financial models built?
In order to build a financial model, you need to have a solid understanding of accounting fundamentals. You have to know what all the various accounts mean, how to calculate them, and how they’re connected.
There are many Excel formulas and functions required, but the best financial models are simple enough that anyone can understand it, but detailed enough to handle complex situations.
Some general rules to follow are:
- Well-structured with a good layout
- Easy to follow and understand
- Drivers and assumptions clearly laid out
- Simplicity over complexity
- Focus on important issues
- Visual outputs
How can we help?
WGP Global can add value to your project by maximising the impact of your financial model as a decision-making tool.
Our financial models are used as a critical tool for raising finance and assessing the impact of strategic choices upon your business. We design and construct innovative and bespoke financial models across a range of industries and sectors and bring together expert understanding of the different operational and capital structure metrics.
In short, we help you understand the impact of your decisions before you make them.
Each model we produce is developed from scratch using proven methodologies, allowing us to tailor a solution that really meets your needs. They are user-friendly, flexible, robust, transparent and credible, and are pivotal in creating insights into business risks, evaluation of options and driving better decision-making.
We’ll work alongside you throughout the whole modelling process to ensure that you understand and own a tool that will be of lasting value to your business. Our approach is pragmatic, combining specialist Excel modelling skills with deep commercial insight and understanding.
You’ll get the right challenges and recommendations throughout the development process, based on our experience of similar businesses and situations.