Unlocking tomorrow: how financial modelling can help inform the future
By James Groot, Corporate Advisory Partner at Cortus Advisory Group
We often spot triggers within our own client base that signal a requirement for a (better) financial model, that you may recognise in your own business, including:
- Thinking about undertaking a transaction
Are you confident your forecasts are robust and flexible enough to support the process? If you are looking to acquire a business can you integrate these acquisitions into the existing forecasting process?
Alternatively, if you are planning a disposal, are forecasts built around the key business drivers, can they quickly be updated to run scenarios and will they stand up to the scrutiny of a due diligence process?
- You are in the middle of a transaction (or in the immediate aftermath)
If your model is only just getting you through the transaction, you probably need to think about putting something more robust in place for use going forwards. Having gone through a transaction, is there anything you would look to improve in either the inputs, outputs or process surrounding the forecasting process?
- Other non-transaction related issues
Can your model be quickly and easily updated, or does it take lots of time each month to roll it forward requiring lots of manipulation to be put into/taken out of the model? Are there lots of legacy elements meaning it can only be used by certain individuals who know exactly how it works and how to operate it? Does your financial model give you visibility on any covenant or cash headroom ‘pinch-points’ and allow you sufficient time to plan and mitigate?
The bottom line is a good financial model should give you visibility of future performance and confidence in your decision making.
At Cortus, we are fortunate to have Ben Whitworth in our team, a dedicated financial modeller with over 23 years’ experience working for clients ranging in size from Fortune Global 500 companies to small start-ups and in sectors including retail, public sector, infrastructure, automotive, healthcare, mining and professional services.
His experience ensures our clients get what they need, not just what they want, from a modelling engagement, ensuring something that is more than fit for purpose and future proofed where possible.
If any of the above strikes a chord, it’s possibly time for a chat with one of our team. Please contact me at jgroot@cortusadvisory.co.uk or Ben at bwhitworth@cortusadvisory.co.uk.
