A highly professional, clean and clear bespoke built “bottom-up” 5 year financial model in MS Excel™️ to provide a detailed analysis, with many sensitivity options, of a business’ projected financials to potential investors. This financial model is suitable for tech companies raising £200k to £20M.
The model would be built using separate sheets to model your marketing strategy, how that translates into sales and revenue, your HR plan and other assumptions which feed into 5 yr linked financial statements consisting of Income Statement, Balance Sheet and Cash flow. The build of the model includes consultations where we ask specific questions to collect the info required to build the model, if certain metrics are unknown or are not available then we will research standard metrics for your industry.
While every business is unique, we often leverage our experience and inventory of models to deploy specific sets of assumptions and formulae structures that allows us to quickly build models that address common needs within each tech sector. These may include:
-Modelling of digital marketing channel performance;
-Subscription based pricing;
-Cohort analysis where customer acquisition, or revenue is not linear in nature;
-Modelling of cloud computing costs with step changes;
-Modelling of capital purchases and disposals using straight line or reducing balance methods; and
-Modelling of additional entities using consolidation journals.
What is included:
1.MS Excel™️ financial model to include the following sheets:
-Cover and Disclaimers
-Financing and Debt
2.The model will be built using:
-IFRS for SME or US GAAP accounting standards.
-Monthly calculations for first 3 years, quarterly for next 2 years with annual summaries.
-Standard investor colour coding of cells.
-Best financial analyst practices to help traceability (top down and left to right flow, standard use of headings and summaries, single assumptions sheet, calculate a piece of data once and forward to other sheets, no calculations on IS, BS or CF sheets, common formulae used across all months, no hidden calculations, no macros).
-Sensitivity analysis enabled by selecting sets of input data with a pull down menu
-Built in error checking such as ensuring balance sheet balances.
-Avoidance of links to external data so the workbook is standalone.
-Clear logical flow to avoid circular references.
Note the model will not be password restricted in any way, but will be licensed to the buyer to enable modification and use of the model for a single legal entity.
-Assumption research (Determination of metrics to be used for key business drivers, gathered from public domain material where these are not available from the client from trial or live data. Sources used will be documented, and may include for example industry specific metrics for CPC, CPM, click to download, click to register, click to purchase rates for digital advertising and retention rates).
4.The package will include three remote consultations:
-Data gathering and advise on business model at start of project (2-3hrs)
-Review of first pass of customer acquisition model and revenue model (1-2hrs)
-Review of first pass of completed model (1-2hrs)
5.Ratios supplied as standard:
-MRR Growth Rate
-CAC Payback Period
6.Graphs supplied as standard:
-Revenue and profit analysis
-Revenue / EBITDA analysis
-Revenue by product/service
-Cash flow analysis
7.Valuation and investor calculations:
-LTV, EV/Revenue or EV/EBITDA valuation calculations
Investor Edition includes the following options as standard:
-3 sensitivity scenarios (best, expected and worst) on sales assumptions
-4 investment/project what if scenarios selectable using menu
-Sales build to include modelling of traffic build from digital marketing channels and conversions
Valuation at 2 points in time based on LTV, EV/Revenue or EV/EBITDA with sensitivity on multiples
Additional features can be supplied at extra cost:
– Change any meeting to face to face in London instead of remote
– Inventory modelling
– Cohort analysis of revenue/retention (required if revenue per client or retention rate is not linear over time)
– IFRS accountancy notes
– Financial plan in MS Word
– Investors exit equity waterfall
– Write up of model structure
– Input actuals to date
– Add additional months to model structure
– Power point output slides (assumptions overview, business model, metrics, summary PNL, summary BS, summary CF, use of cash)
– Maintenance plan
Model would take about 12 working days to complete after first consultation meeting.
Payment terms 40% paid on purchase, 40% paid after first pass revenue build is sent, and 20% paid after first pass full model sent.
Once the first draft of any of the products is sent, clients has five business days to request any changes. Any change requests that are included in standard maintenance plan will be made free of charge. Any change requests that are out of scope of standard maintenance plan will be chargeable at the standard hourly rate. Changes will be made with an estimated five business day turnaround.