The document outlines an agenda for a startup leadership program on financial modeling. It includes presentations on what a financial model is, how to build an income statement, balance sheet, and cash flow statement. It discusses how financial models are useful for entrepreneurs and startups by providing an analytical lens, operating roadmap, risk assessment, scenario exploration, and as a pitch tool for investors. The document also covers best practices for model construction and common business metrics and economic indicators analyzed in financial models.
For full text article go to : https://www.educorporatebridge.com/financial-modeling/financial-modeling-technique/ This Financial Modeling Technique will help you to understand some important techniques like color coding, circular reference, compilation of historical data, things needs to be considered before making an assumption etc in order to make a financial model easy to understand.
This presentation provides an understanding of what financial modelling is and how it is used. Moreover it covers the basic approach for creating financial models and utilising them as needed.
Types of Financial Model - Financial Modeling by EduCBAeduCBA
https://www.educorporatebridge.com/financial-modeling/types-of-financial-model/
Learn the different types of Financial model like DCF Model, Comparative Company Analysis model, Sum-of-the-parts model, LBO Model, M&A model and Option Pricing Model
For full text article go to : https://www.educorporatebridge.com/financial-modeling/financial-modeling-technique/ This Financial Modeling Technique will help you to understand some important techniques like color coding, circular reference, compilation of historical data, things needs to be considered before making an assumption etc in order to make a financial model easy to understand.
This presentation provides an understanding of what financial modelling is and how it is used. Moreover it covers the basic approach for creating financial models and utilising them as needed.
Types of Financial Model - Financial Modeling by EduCBAeduCBA
https://www.educorporatebridge.com/financial-modeling/types-of-financial-model/
Learn the different types of Financial model like DCF Model, Comparative Company Analysis model, Sum-of-the-parts model, LBO Model, M&A model and Option Pricing Model
Agenda:
Modeling depleting items
Consistency in the format
Modeling the Taxes
Modeling of Debt and Cash Balances
Edupristine offers Financial Modeling Course in US a practical approach for financial analysts to come to the business valuation of any organization
More info take a look at:http://www.edupristine.com/ca/courses/financial-modeling/
Meaning
Types of working capital
Factors of determining working capital
Operating working capital cycle
Importance of operating cycle concept
Internal factors
External factors
General factors
Types of capital structure
Characteristics of security
Agenda:
Modeling depleting items
Consistency in the format
Modeling the Taxes
Modeling of Debt and Cash Balances
Edupristine offers Financial Modeling Course in US a practical approach for financial analysts to come to the business valuation of any organization
More info take a look at:http://www.edupristine.com/ca/courses/financial-modeling/
Meaning
Types of working capital
Factors of determining working capital
Operating working capital cycle
Importance of operating cycle concept
Internal factors
External factors
General factors
Types of capital structure
Characteristics of security
The forecast for the Singapore economy in 2017 paints a challenging picture. To help you navigate and support your business through the slower economy, we have put together some insightful tips to share with you. You will learn the essentials on how to manage late payments, maximising your tax return, as well as available grants that your business can tap into.
Branches of Accounting What You Need to Know When Writing an Assignment.pdfMatt Brown
Accounting is a fascinating and complex field, so it can be hard to know where to start when writing an assignment. This article will give a couple of supportive tips to fanning out into new areas of bookkeeping. You will be better able to write about the various accounting fields accurately and thoroughly if you comprehend them. When writing your next assignment, keep these suggestions in mind!
Business Case Development Toolkit (with Excel model)David Tracy
Any project requiring a non-trivial investment must be supported by a robust business case to justify the economics of this pursuit. This toolkit outlines the objectives, components, and processes involved with business case development. Furthermore, it includes a working, consulting quality capital budgeting business case model (Excel financial model).
Full preview and download here:
http://learnppt.com/powerpoint/58_Business-Case-Development-Toolkit-with-Excel-model.php
More business strategy frameworks and documents here:
http://learnppt.com/business-strategy.php
http://learnppt.com/powerpoint/frameworks/
http://learnppt.com/powerpoint/diagrams/
Financial Planning - Joel Humphrey (Freelandt Caldwell Reilly LLP)NORCAT
Joel Humphrey, partner at Freelandt Caldwell Reilly LLP returns to ENT101 to discuss financing for start-ups.
Joel works with many of the firm’s start-up clients to review business plans, develop financial forecasts, map out cash flow strategies and arrange financing requirements. With Joel’s extensive experience with young companies, this lecture will be extremely informative for all levels.
Watch the presentation at http://www.norcat.org/ent-101/season-3-lectures/
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Joel Humphrey of Freelandt Caldwell Reilly LLP discusses how to create a sales forecast, developing your budgets and examples of cash flow projections.
Do you have the right tools to measure your financial performance? Do you know what elements are necessary to guide your business? Based on last year's rave reviews, Autotask's own Chief Financial Officer, Vince Zumbo, will return to lay out the fundamentals of planning and monitoring your financials for success. Vince will be aided by Autotask Product Manager Joe Rourke who will demonstrate how you can apply what you've learned by leveraging Autotask to support your business' optimal financial health. This session is full of tips, templates and insights that are used by financial professionals today and can be used by organizations of all sizes.
[Presenters: Vince Zumbo & Patrick Burns, Autotask]
1. Start up Leadership Program – 13th Oct 2012
Financial Modeling
By
CA Tapan Kumar Das
Co-Founder Qua Nutrition
2. Training Methodology
Presentation - Half an Hour
Question and Answer - One Hour
1st Project Analysis - One Hour
2nd Project Analysis – One Hour
Summaries – Fifteen Minutes
3. What is Financial Model
Representation of an entity’s Financial Statements and Accounts
To gain useful insights
Focus on Future results
The Format Includes : Future Financial Picture in an
Income Statement
Balance Sheet
Cash Flow Statement
Other Inputs and Assumptions and Physical Measures
Provide Useful Analysis for Decision Maker
financial model is a decision support tool
It Does not Predict the Future but to understand the Parameters about the Futures
Q : Why it is useful to the Entrepreneur like you ?
4. 5 Reasons Why You Need To Build A Financial Model For Your Start up
To be successful, entrepreneurs and start-up founders
- need to have a good handle on their business.
- The best way to do this is to build a financial model
- which will give greater insight into your company.
- It will also make your start-up more attractive to venture capital investors, lenders, or
angel investors
Analytical Lens - It is framework for thinking through Business in an objective , critical manner . And construct
numbers around each assumptions
Operating roadmap - A model is, by its nature, a chronological way of laying out what you expect to happen and
when—and what it will cost—in a very granular manner
Risk Assessment - Identifying the key levers (and sensitivities) of the business helps illuminate the risk points of your
startup— in particular, the magnitude of downside risk. For example, at most startups, expenses precede revenue
Scenario Exploration - Models allow for multiple forms of really useful business model analysis. For example: what
happens to our break-even point when we lower prices by 10%? Or, how much extra money will we need to raise if
sales take a lot longer than we expect? Or, what do margins look like if we hire a direct sales team vs. recruiting a
network of affiliates?
Pitch and Sales Tool:Last but not least, models are a great way to bolster your pitch to investors, lenders or strategic
partners. At its most basic, the model eloquently explains how much money you need, and how much you will make
for the investor or partner.
5. Uses of Model
To Value a Business Activity
Helpful in Planning Situations
Can Answer the followings ;
Return on the Money Invested in the Projected
When the Project will reach cash Positive
Breakeven Point
If Return is x% then what could cost for Business Activities
How long project can survey without further Investment
Helps to examine the Financial and Physical scenarios
( Productivity and Performance measurement , Expansion , New Capacity building up )
It Does not Answer the Good or bad Ventures
But
answer How will the investor get his money with expected return
Q : How it is useful to entrepreneur ?
6. What is Income Statement
Reflect the Economics of a Business
It is for the Period
Components of Income Statement ;
Revenue ( Nature , Growth )
Cost ( Direct , Indirect , Nature )
Profit ( generated from Business Activities )
Depreciation and
Tax ( Direct , Indirect )
not the cash the venture earns
It is Summary of all the Day-to-day Business activities
Q : How it is different from Cash Flow ?
7. What is Balance sheet
Snapshot of Company’s Financial Position
It shows Assets and Liabilities on a particular date
Assets includes Tangible Assets and Intangible Assets
Components of Balance sheet ;
Owners Money
Debt
Fixed Assets and Intangible Assets
Working Capital
Misc Expenditure
It is Not a Statement but a Financial Position
Q : How it influence Valuation ?
8. What is Cash flow Statement
It tracks the cash in the company during the time period
Components of Cash Flows ;
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow
Operating Cash Flow : Reflect the cash come out of the running the Business
( Answers the Working capital Position of the company
Investing Cash Flow : Long term investment in Assets to further the Business
Financing Cash Flow : Capital Flows to the Business
Q : How it influence Valuation ?
9. Financial Modeling
Make Basic – Financial Modeling
- Input Excel Sheet ( Quantitative and Qualitative )
- Income Statement for 3- 7 Years
- Balance sheet for – 3- Years
- Cash Flow for – 3-7 Years
- Running the Model ( Manipulating the Inputs while observing the outputs to draw
Business conclusions from the result – to bring the Better Performance /use of
Resources .
Advanced – Financial Modeling
- Debt and revolvers ( alternative funding , Cash flow and Profit impact and risk analysis )
- Depreciation ( affects Net Income , Tax , Assets Purchases , alternative arrangement)
- Taxation ( Tax change , Govt Policy change , Revenue collection change, Cash flow )
- Pensions /Retention policy ( affects on Cash flow , risk )
- Capital Leases/ Buy ( affect on Free Cash Flow and Tax, Growth )
- Multiple acquisitions or Projects or Branches or Structure to optimize Overhead
- Analysis and Valuation :
1. Valuation , Share Calculations
2. Building Physical Quantities * refer next slide
3. Sensitivities and What-if ( Goal seek model , watching Output while changing the
input
10. Building Physical Quantities
Non Financial Business Metrics ( Input /Output Model ) Like
- Business Drivers ( helps for investment needed, Human capital needed ,
Cost/Productivity )
- Sources of Information ( True Independent Info )
- Financial Parameters input ( Buy/Lease, Debt/Equity ,Working capital Assumption etc )
- Physical Mechanics ( Revenue/ Capex / Unit cost / Profit etc )
11. Top Investment Banking Interview Questions
How do you Value your Company ( Intrinsic Value or relative Valuation )
What is Discount rate – Cost of Capital
How do you calculate cost of Capital – Risk free rate + Market risk Premium
What is the Appropriate Numerator for revenue multiple
When should you value a company using a revenue multiple vs. EBITDA?
How would you value a company with negative historical cash flow?
How do you calculate unlevered free cash flows for DCF analysis? (Free cash flows =
Operating profit (EBIT) * (1 –tax rate) + depreciation & amortization – changes in net
working capital – capital expenditures)
Two companies are identical in earnings, growth prospects, leverage, returns on capital,
and risk. Company A is trading at a 15 P/E multiple, while the other trades at 10 P/E. which
would you prefer as an investment?
12. Different Approach during Financial Modeling
Should you focus on the best case or worst case scenario for your financial statements?
How deep should you go in your analysis?
What is credibility and how is it achieved?
How do footfall and ticket size apply to financial modelling?
What are top-down and bottom-up approaches to financial modelling?
What is the Break-Even level?
What should your final financial statements look like?
13. Best Practices for Model Constructions
Follow Firm Format ( standard format followed by regulatory requirements)
Include an executive Summary ( Top Level Consolidated Information )
Make Logical Page Breaks on all Sheet
Use Version Control for Future reference
Use Multiple sheets
Consolidated Input sheet and link to the other sheet ( Do not hard code )
Consistency between sheets ( Same year , Column )
Keep a change Log
Q : Will it create comforts for the Analyzer /Investor ?
14. Business Economic Indicator
Revenue / Customer
Cost / Customer
Profit / Customer
EBIDTA % to Revenue
Indirect Cost / Revenue
PBT / Revenue
Revenue/Employee
Cost of capital
Revenue / Fixed Assets
Debtors Days
Creditors Days
15. Uses of Model
Question and answer
Section for One Hour
+
Why and When you need Finance profession