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Financial Model Construction

All of our models are built using our established best practice methodology and independently quality assured by our separate model review team. We understand that financial models can be complicated, so we design our models to be user-friendly, flexible, and tailored to clients' needs. Our team can support you by either building models for your use or training your staff in our model development approach.

Building a financial model involves multiple stages, each crucial for ensuring the model's effectiveness and reliability. Our approach starts with understanding the client's business, its objectives, and the specific requirements for the model. We then proceed to collect and analyze relevant data, which serves as the foundation for the model. This data collection phase is critical as it ensures that the model is based on accurate and up-to-date information.

Once the data is collected, we begin the actual model construction. This involves creating a logical framework that represents the business's financial operations. The model is built using advanced spreadsheet techniques and best practices in financial modeling. Our team ensures that the model is flexible, allowing for easy updates and adjustments as new data becomes available or as business conditions change.

After the initial construction, the model undergoes a rigorous review process. Our separate model review team examines the model for mathematical accuracy and logical consistency. This independent review is crucial for identifying and correcting any errors or inconsistencies, ensuring that the final model is robust and reliable.

Throughout the construction process, we maintain close communication with our clients. This collaborative approach ensures that the model meets their specific needs and expectations. We also provide training for clients' staff, equipping them with the skills and knowledge to effectively use and maintain the model. This training covers various aspects of financial modeling, including data analysis, spreadsheet techniques, and model interpretation.

Our financial model construction services are designed to provide clients with a powerful tool for making informed business decisions. Whether it's for budgeting, forecasting, valuation, or strategic planning, our models offer the flexibility and accuracy needed to support a wide range of financial analyses.

Financial Model Review

As financial models become more complex, the need for a rigorous and independent review becomes more pressing. We perform reviews on existing models to test their mathematical accuracy and integrity or to confirm that assumptions have been accurately incorporated. We work closely with our clients, banks, and sponsors, and our experience encompasses project finance, Public-Private Partnerships, working capital, and mergers and acquisition modeling.

Our financial model review process involves a thorough examination of the model's structure, formulas, and assumptions. We start by understanding the purpose of the model and the context in which it is used. This helps us identify the key areas that need to be reviewed and the specific tests that need to be conducted.

The next step is to verify the mathematical accuracy of the model. This involves checking all formulas and calculations to ensure they are correct and consistent. We use advanced spreadsheet techniques and tools to automate this process and identify any errors or discrepancies. Our team also examines the model's logical flow and structure, ensuring that it accurately represents the business's financial operations.

In addition to verifying mathematical accuracy, we also review the assumptions used in the model. Assumptions play a critical role in financial modeling, as they impact the model's outputs and conclusions. Our team examines the assumptions to ensure they are realistic, reasonable, and based on accurate data. We also test the sensitivity of the model to changes in key assumptions, identifying any potential risks or uncertainties.

Our financial model review services provide clients with a comprehensive assessment of their models. We identify any errors or weaknesses and provide recommendations for improvement. This helps clients enhance the reliability and effectiveness of their models, supporting better decision-making and reducing risks.

Our team has extensive experience in reviewing models for various purposes, including project finance, mergers and acquisitions, and working capital management. We have worked with a wide range of clients, including banks, sponsors, and private sector companies. This experience allows us to understand the unique challenges and requirements of different types of models and provide tailored review services.

Project Analysis

Complex financial models are key to the majority of private and public sector projects that require appraisal. Armslength provides support to project finance funders, private sector shareholders, and credit guarantee agencies on all financial aspects of project finance. We respond promptly and remain flexible when faced with demanding project deadlines.

Project analysis involves evaluating the financial viability and potential risks of a project. This requires a detailed understanding of the project's financial model and the assumptions on which it is based. Our team works closely with clients to develop robust financial models that accurately represent the project's financial operations.

We start by understanding the project's objectives, scope, and key financial drivers. This helps us develop a comprehensive model that captures all relevant aspects of the project. Our team uses advanced modeling techniques and best practices to create a flexible and reliable model. We also ensure that the model is user-friendly, allowing clients to easily update and adjust it as needed.

Once the model is developed, we conduct a detailed analysis to evaluate the project's financial viability. This involves examining the model's outputs and conducting sensitivity analyses to identify potential risks and uncertainties. Our team also evaluates the project's cash flow projections, profitability, and financial ratios to assess its overall financial health.

In addition to developing financial models, we also provide project analysis services for existing models. Our team reviews the model's structure, formulas, and assumptions to ensure they are accurate and reasonable. We also conduct stress tests to evaluate the model's sensitivity to changes in key assumptions. This helps identify potential risks and areas for improvement.

Our project analysis services provide clients with a comprehensive assessment of their projects' financial viability. We identify potential risks and provide recommendations for mitigating them, helping clients make informed decisions and reduce uncertainties.

Our modeling experts have developed robust modeling protocols and are experienced in valuations, project analysis, finance, restructuring, and accounting. This experience allows us to understand clients’ business and the critical issues it may face. By working closely with your team and following Armslength’s financial modeling protocols, we can assist your business by building a financial model specifically for your needs. We also perform reviews on existing models.

Conclusion

Financial modeling is a critical tool for businesses in today's complex financial environment. Whether it's for budgeting, forecasting, valuation, or strategic planning, a well-built and rigorously reviewed financial model can provide invaluable insights and support informed decision-making. At Armslength, we offer comprehensive financial modeling services, including model construction, review, and project analysis. Our team of experts is dedicated to helping clients navigate the complexities of financial modeling and achieve their business objectives.

Our financial model construction services ensure that clients receive user-friendly, flexible, and tailored models that meet their specific needs. By following best practices and conducting rigorous quality assurance, we provide clients with reliable and effective tools for financial analysis. Our financial model review services offer an independent and thorough examination of existing models, helping clients identify and correct errors, verify assumptions, and enhance the overall reliability of their models.

In addition, our project analysis services provide clients with a detailed evaluation of their projects' financial viability. By developing robust financial models and conducting comprehensive analyses, we help clients identify potential risks and opportunities, supporting better decision-making and reducing uncertainties.

At Armslength, we are committed to providing high-quality financial modeling services that meet the unique needs of each client. Our team of experts has extensive experience in various areas of financial modeling, including project finance, mergers and acquisitions, and working capital management. This experience, combined with our rigorous methodologies and best practices, ensures that we deliver reliable and effective financial models that support our clients' business objectives.

Whether you need a new financial model, a review of an existing model, or a detailed project analysis, Armslength is here to help. Contact us today to learn more about our financial modeling services and how we can support your business.

Service philosophy Consulting Approach

An engagement of business consulting, be it a transaction advisory, valuation, financial modeling, investigation or accounting, requires an understanding of business, business opportunities and risks associated with the subject matter.