Top management is under pressure to analyze every business decision relative to maximizing shareholder value. Within the scope of financial modelling & analysis services, Consulta constructs financial models to facilitate a company’s decision making process. A well articulated financial model provides insightful information that allows management team to discover the financial impact of their strategic decisions and justify the company’s business plan or investment decision. Consulta can add value to projects by constructing a user-friendly financial model to give clear answers to the questions brought up during the decision making process. The financial model constructed by Consulta will also take into consideration of accounting and tax implications. Consulta is flexible with how it works with clients. Depending on the circumstance, Consulta will help the client either design, build or review financial models to help the decision makers understand the impact of different commercial or financial assumptions on cash position, profit, tax and financial structure.
Consulta encounters common errors in Excel spreadsheets. In order to reduce Excel errors, Consulta builds financial models based on the following principles:
In the following situations, clients can request from Consulta to create a financial model from scratch that allows the executives and board members to reach their decision points.
1) Budget Planning & Forecasting
2) Working Capital & Cash Flow Management
3) Product and Customer Profitability
5) Cash Flow Forecasting
6) Financial Performance Reporting for Executive and Board Members
For illustrative purposes, Consulta’s approach in completing financial modelling projects:
1) Determine all the value drivers
2) Determine the effect of different scenarios
3) Conduct stress testing on hypothethical scenarios and value-creating factors
4) Present deliverables that meets shareholder and market requirements