Financial Modelling

Service Description

Learning Objectives 1. Understand the principles and components of financial modelling. 2. Learn to structure and design user-friendly models. 3. Develop skills in forecasting, sensitivity analysis, and scenario planning. 4. Use financial models for business valuation, budgeting, and strategic decision making. 5. Master Excel functions and tools critical for efficient modelling. Outcomes By the end of the program, participants will: 1. Be able to design and implement financial models tailored to their business needs. 2. Accurately forecast business performance using financial models. 3. Conduct sensitivity and scenario analysis for better risk management. 4. Use models to support decisions in valuation, budgeting, and financing. 5. Enhance productivity with advanced Excel techniques and best practices. Module 1: Fundamentals of Financial Modelling • Overview of financial modelling and its applications. • Key principles: structure, simplicity, and flexibility. • Understanding the end-user perspective in model design. Module 2: Building a Strong Foundation • Designing model layouts and flow. • Input assumptions, calculations, and outputs. • Avoiding common errors in financial models. Module 3: Advanced Excel Techniques for Financial Modelling • Essential Excel functions: IF, VLOOKUP, INDEX, MATCH, and more. • Data validation and conditional formatting for better usability. • Using PivotTables, macros, and data analysis tools. Module 4: Forecasting and Budgeting Models • Revenue and expense forecasting techniques. • Building a cash flow forecast. • Budgeting models for operational planning. Module 5: Valuation Models • DCF analysis and building a valuation model. • Using comparable company analysis (CCA) and precedent transactions. • Estimating terminal values and sensitivity analysis. Module 6: Scenario and Sensitivity Analysis • Developing "what-if" scenarios to test assumptions. • Analyzing the impact of variable changes on business outcomes. • Building dynamic models with drop-down menus and switches. Module 7: Financial Models for Decision-Making • Models for investment appraisal (NPV, IRR, payback period). • Cost-benefit analysis and break-even modelling. • Risk management using probability and stress testing. Module 8: Model Auditing and Documentation • Reviewing and troubleshooting models for errors. • Documenting assumptions and methodologies for stakeholders. • Ensuring models are audit-ready and transparent.