NEXT-GENERATION FINANCIAL MODELING

We build next-generation financial models for any complexity of M&A or planning & forecasting scenarios

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Core Specialities

Next generation Financial Modeling

ACS Model Build Methodology

Core Financial Modeling Services

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cre specialities

We specialize in

Business Valuation Modeling

Mergers & Acquisition Modeling

Leveraged Buyout Modeling

Comparable Valuation Modeling

IPO Modeling

Dividend Discount Modeling

Financial Projections Modeling

FP&A Monthly Cash Flow Forecast

Scenario & Sensitivity Analysis

Operational Modeling

Business Risk Modeling

Business Restructuring Modeling

Start-up Investor Pitch Deck Modeling

Option Pricing Modeling

Consolidation Modeling

Options Strategy Modeling

Ecommerce Modeling

SAAS Business Modeling

Renewable Energy Industry Modeling

Real Estate Business Modeling

Mining Industry Modeling

Solid Waste Management Modeling

Transport Industry Modeling

Smart City Infrastructure Modeling

Public Utilities Tariff Modeling

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Insight through transaction analytics

We help our clients in making some of their most important decisions using bespoke financial models and analytical tools.

The skill of our modelling experts lies in an ability to distil the essence of a problem and rapidly support the implementation of robust tools, delivering relevant and insightful analysis across the corporate project or transaction lifecycle.

Business Modeling support across the corporate lifecycle

Critical business decisions are increasingly underpinned by complex, bespoke quantified analysis. The need for expert modeling is often heightened when the financial exposure is significant, data sets are large or complex, and multiple stakeholders are involved. Modeling is a specialist skill and as a center of excellence, we apply proven methodologies and leading edge tools, bringing a disciplined and collaborative approach when helping our clients.

Explore the various aspects of next generation Financial Modeling

next generationfinacial modeing

Financial Modeling Overview

Financial modeling is an invaluable tool for forecasting future financial performance, measuring a business's value, evaluating M&A activity, assessing the impact of possible business scenarios and understanding performance sensitivity to volatile future environmental factors.

A financial model is simply a tool that’s built usually in Excel to forecast financial performance of a business into the future. The forecast is typically based on the company’s historical performance, assumptions about the future, and requires preparing an income statement, balance sheet, cash flow statement and supporting schedules (known as a 3 statement model). From there, more advanced types of models can be built such as discounted cash flow analysis (DCF model), leveraged-buyout (LBO), mergers and acquisitions (M&A), and sensitivity analysis.

Financial Modeling Uses

The output of a financial model is used for decision making and performing financial analysis, whether inside or outside of the company.

Inside a company, executives will use financial models to make decisions about:

Raising capital (debt and/or equity)

Making acquisitions (businesses and/or assets)

Growing the business organically (i.e. opening new stores, entering new markets, etc.)

Selling or divesting assets and business units

Budgeting and forecasting (planning for the years ahead)

Capital allocation (priority of which projects to invest in)

Valuing a business

ACS Financial Modeling Skills

Do you know what it takes to create a next generation financial model?

A next generation financial model is fully dynamic, minimizes complexity and yet produces relevant analysis & accurate results for a variety of scenarios.

To create such a model, one needs to have an all-round expertise in several subject areas:

The skills that are absolute essential include:

Advanced knowledge & expertise in financial accounting
Expertise in business analysis & valuation - concepts & techniques
Solid grip on a wide range of finance & related subjects
Practical experience in corporate development and/or FP&A roles
High level of Excel expertise
In-depth knowledge of various performance management subjects
Comprehensive grasp of global economy & economics concepts
Advanced expertise in business mathematics
Expertise in statistical forecasting techniques
World-class presentation skills

At ACS, we combine decades of collective experience of our consultants to create a skill-set which well-surpasses the above mentioned minimum criteria.

ACS Model Built

Our model build process

A well built and robust financial model is a key tool for management teams in effectively and efficiently running and navigating their businesses.

Our financial modeling services help provide reliable three-statement forecasts using driver-based assumptions, tailored to your business and your needs. Our models can incorporate profitability, cashflow and asset value projections over the medium term so that any potential obstacles can be planned for in advance.

All our models are built with purpose in mind, following best practice modelling techniques - producing dynamic, valuable and user-friendly models. Our models integrate your business’s historic and ongoing results, enabling simple periodic roll-forward.

Our models assure investors who want to test the assumptions put before them, and can also be used as an ongoing management tool. They empower decision makers within the business to stress test, sensitise and visualise future expectations.

Our tried and tested approach ensures a smooth and efficient development experience. We take the time to understand your business, data and purpose of the model so we can build your model in a streamlined manner from the outset.

Throughout the process, we adopt a collaborative approach with regular check-ins to ensure the model is built to your specifications and provides the outputs that you need to suit the original purpose.

OUR MODEL BUILD PROCESS

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Scope

Plan

Test

Design

Build

Handover

Review

Our core financial modeling services

Core financial modeling

Budgeting & forecasting

Sensitivities/scenarios

Cashflow/DCF forecasting

IPOs

Financing overlay

Private equity

Debt

Growth & acquisitions

LBO/MBOs

Returns analysis

Investment appraisal

Valuations

Venture capital

Fund/portfolio modeling

Operational modeling

Business risk modeling

Business restructuring modeling

Start-up investor pitch deck modeling

Option pricing modeling

Consolidation modeling

Options strategy modeling

Start-up Investor Pitch Deck Modeling

Service Business Modeling

Telecom & Tech Business Modeling

Ecommerce Modeling

SAAS Business Modeling

Renewable Energy Industry Modeling

Smart City Infrastructure Modeling

Government Contract Modeling

Government Tenders Support Modeling

Transaction Advisory Support Modeling

Institutional Reform Support Modeling

Urban Infrastructure Revenue Modeling

Real Estate Business Modeling

Mining Industry Modeling

Solid Waste Management Financial Modeling

Sanitation Companies Financial Modeling

Transport Industry Financial Modeling

Public Utilities Tariff Modeling

Operational modeling

Our operational modelling services enable management to flex the operational drivers of their business for strategic decision-making and scenario analysis.

As with all our services, our models are purpose built and tailored to your specific needs and situation.

Our operational models are designed to help you understand the potential impact of internal and external factors on your business, enabling you to make informed decisions that drive success.

Ask us about our recent experience

Stock management and asset build phasing

for a telecom company

Model for a water utility company assessing the impact of

consumer sensitivities and one off shocks on cash and reserves

Business expansion and divestment options appraisal model

for a IT services company

Model assessing the financial impact of different exit

and procurement options for a public sector contract

Transaction model utilizing a global supply chain

Model for a pre-profit company overlaying the impact of various growth strategies

Data analytics

OPTIMISED ANALYTICS TOOLS

EXPLORATORY DATA ANALYSIS (EDA)

DATA INTEGRATION

CONFIRMATORY DATA ANALYSIS (CDA)

DATA VISUALIZATION

ONGOING SUPPORT & MAINTENANCE

Our Data Analytics and Visualization services enable management teams, shareholders and investors to extract key information from large and complex data sets on an ongoing basis.

OUR FIVE-STAGE PROCESS CREATES PURPOSE BUILT, OPTIMISED ANALYTICS TOOLS

Leveraging ever-increasing commercial data can provide your organization with timely and relevant information, enabling effective decision making to develop a competitive advantage.

Our team has extensive experience in applying industry best practice to transform data into easy to digest visualisations, accessible on laptops and mobile devices.

We can also offer ongoing analytics and reporting services to provide you with meaningful insights on a periodic basis, which can be developed with the ever-increasing needs and demands of your business.

10 Steps Financial Modeling Process

for a generic business valuation model

Though each assignment could have varying needs, given below is a generic step-by-step breakdown of where we start and how we eventually connect all the dots to produce next generation financial models.

1. We analyze & compile historical results and assumptions

Most financial model starts with a company’s historical results. We begin building the financial model by pulling three to five years of financial statements and inputting them into Excel.

Next, we reverse engineer the assumptions for the historical period by calculating things like revenue growth rate, gross margins, variable costs, fixed costs, AR days, inventory days, and AP days, to name a few.

From there we fill in the assumptions for the forecast period.

4. We build the supporting schedules

Before completing the income statement and balance sheet we create a schedule for capital assets like Property, Plant & Equipment (PP&E) as well as for debt and interest.

The PP&E schedule is pulled from the historical period, to which we add capital expenditures and subtract depreciation.

The debt schedule is also pulled from the historical period to which we add increases in debt and subtract repayments. Interest should normally be based on the average debt balance.

5. We then complete the income statement and balance sheet

The information from the supporting schedules completes the income statement and balance sheet.

On the income statement, we link depreciation to the PP&E schedule and interest to the debt schedule. From there we calculate earnings before tax, taxes and net income.

On the balance sheet, we link the closing PP&E balance and closing debt balance from the schedules. Shareholder’s equity is completed by pulling forward last year’s closing balance, adding net income and capital raised and subtracting dividends or shares repurchased.

6. We build the cash flow statement

With the income statement and balance sheet complete, we then build the cash flow statement with the reconciliation method. i.e. we start with net income, add back depreciation and adjust for changes in non-cash working capital, which results in cash from operations.

Cash used in investing is a function of capital expenditures in the PP&E schedule and cash from financing is a function of the assumptions that were laid out about raising debt and equity.

8. We add sensitivity analysis and scenarios

Once the DCF analysis and valuation sections are complete, it’s time to incorporate sensitivity analysis and scenarios into the model.

The point of this analysis is to determine how much the value of the company (or some other metric) will be impacted by changes in underlying assumptions.

This is very useful for assessing the risk of an investment or for business planning purposes (i.e. does the company need to raise money if sales volume drops by x percent?).

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NEXT-GENERATION FINANCIAL MODELING

Explore More

We specialize in

Insight through transaction analytics

We help our clients in making some of their most important decisions using bespoke financial models and analytical tools.

The skill of our modelling experts lies in an ability to distil the essence of a problem and rapidly support the implementation of robust tools, delivering relevant and insightful analysis across the corporate project or transaction lifecycle.

Business Modeling support across the corporate lifecycle

Explore the various aspects of next generation Financial Modeling

Our model build process

A well built and robust financial model is a key tool for management teams in effectively and efficiently running and navigating their businesses.

All our models are built with purpose in mind, following best practice modelling techniques - producing dynamic, valuable and user-friendly models. Our models integrate your business’s historic and ongoing results, enabling simple periodic roll-forward.

Our models assure investors who want to test the assumptions put before them, and can also be used as an ongoing management tool. They empower decision makers within the business to stress test, sensitise and visualise future expectations.

Our tried and tested approach ensures a smooth and efficient development experience. We take the time to understand your business, data and purpose of the model so we can build your model in a streamlined manner from the outset.

Throughout the process, we adopt a collaborative approach with regular check-ins to ensure the model is built to your specifications and provides the outputs that you need to suit the original purpose.

Our core financial modeling services

Operational modeling

Our operational modelling services enable management to flex the operational drivers of their business for strategic decision-making and scenario analysis.

As with all our services, our models are purpose built and tailored to your specific needs and situation.

Our operational models are designed to help you understand the potential impact of internal and external factors on your business, enabling you to make informed decisions that drive success.

Ask us about our recent experience

Data analytics

Our Data Analytics and Visualization services enable management teams, shareholders and investors to extract key information from large and complex data sets on an ongoing basis.

Leveraging ever-increasing commercial data can provide your organization with timely and relevant information, enabling effective decision making to develop a competitive advantage.

Our team has extensive experience in applying industry best practice to transform data into easy to digest visualisations, accessible on laptops and mobile devices.

We can also offer ongoing analytics and reporting services to provide you with meaningful insights on a periodic basis, which can be developed with the ever-increasing needs and demands of your business.

​1. We analyze & compile historical results and assumptions

1. We analyze & compile historical results and assumptions