A financial model is a sophisticated tool used by financial analysts to forecast a business’ future financial performance and is normally based on historical data and assumptions.
Why use Financial Modelling?
- Company Decisions – Company performance and efficiencies, strategic planning including vertical or horizontal sector penetration.
- Project Finance – Whether to invest in a project, does the project give a return, or is it loss-making?
- Corporate Transactions – Mergers & Acquisitions, analysis of synergies, revenue enhancements, cost structures.
- Investment Decisions – Valuation, equity research, portfolio management.