Strategic Forecasting

It is so important for a Business to understand how each key strategic decision impacts its future Balance Sheets, Income Statements and Cash Flows.

To assist you with your Strategic Forecasting needs, we construct, and deliver to you, Financial Models that are Relevant, Input-Driven, Dynamic and Friendly.

A good business is constantly aware of its surroundings, and must be in a position to immediately pivot as things change.

Acquiring a target, disposing of a subsidiary, entering a new region, issuing more shares, repaying loans, investing in new technology – these are all examples of actions that the Business needs to make from time to time.

What are the Tax consequences? What is the impact on Capital Structure? Is Value created or destroyed? To strategically make the best decision, the Business should consider the impact of each action on its Financial Position (Balance Sheet), Financial Performance (Income Statement) and Liquidity (Cash Flows).

The only practical way to do this is to Model it. Over the years we have constructed a number of Strategic Forecasting Financial Models (“Models”) and our tried-and-tested methodology is illustrated below:

When building our Models we make sure that they are:

Relevant: Although our Models will always produce forecast Balance Sheets, Income Statements and Cash Flow Statements, our Outputs also include metrics that are relevant to you and your Business (e.g. Debt Covenants, KPI’s, and ROI metrics such as NPV, IRR and Payback Period).

Input-Driven: The Key Value Drivers of the Business should be identified upfront, and stored in a single location. Any, and all, changes to the Model can only be made through the Inputs page.

Dynamic: As changes are made to the Inputs, the Calculations, Outputs and Dashboard are immediately updated. A number of Scenarios, designed to your specification, can be used to define and set key Inputs.

Friendly: Tailored to your specifications, the Dashboard should concisely capture and reflect the Outputs of the Model, while also allowing you to make changes to Key Inputs and Scenarios.

Please Contact us for more information on how we can assist you with the construction of Strategic Forecasting Financial Models.