Why use the service:

A good process helps you think about the business in a new and valuable way

An independent review can be objective about the assumptions

It's low cost compared to hiring a consultant full time, or just risking your investment.

Consider the process and the knowledge base that will be shared with you in our service also as training on creating plans, and thinking about business. You will hopefully learn through undertaking our process.

Not everyone can write well, take the headache out of writing and presenting.

Building financial models that are dynamic is a skill set that not many have.

 

The dynamic model is not an accountant P&L. It does show you a P&L, Balance sheet and cashflow, but at a high level. The model's purpose is to act as a strategic guide to the value drivers of your business. It is not meant to be a line by line item cost tracking mechansim - that is why you have accounting systems. It projects the possible outcomes based on changes in strategy.

Why not have a template based approach?

Every business is different and the drivers are different. Each dynamic model is built for the business in particular and is easy to drive and change to see the impact of various key changes. For example, if you assumed your cost of sale was $150, and in your accounts its running at $200, then you can plug this in and see the long term impact on your business, and then create strategies to rectify that and see their potential impact.

The dynamic model is an invaluable tool that lets you test sensitivies of your business to changes, and is a great way to communicate the potential value of your business to an investor.