Financial modelling and future scenarios

Scenarios and modelling as cornerstones of financial planning

We help you form more accurate financial and strategic plans by mapping out the main variables that affect your business. We produce sensitivity analyses using key variables and model their impact on profit performance, balance structure and business value.

Creating a business plan requires a vision well into the future, which in turn brings with it risk and uncertainty in an ever-changing operating environment. To succeed, the company must strive to anticipate future changes and create plans to respond to them as quickly as possible.

Scenario working boosts responsiveness when future is uncertain

Financial modelling of the business allows you to build different scenarios in a changing situation and simulate the impact of different options on the profitability, financial position, and financing of the company, as well as covenants, rating, and the financial eligibility of the company.

In financial modelling, a theoretical representation (model) of the actual financial situation is created. The task of this mathematical model is to describe in a simplified form the earning logic of the company. The purpose of the calculations is to model the business into a monetary form, assessing the realism of the business or investment being planned and reducing the business risk.

The model’s construction phase identifies the key variables that have the greatest impact in terms of the realization of economic objectives. Using these key variables, different scenarios are formulated, simulated the effects of different scenarios, and sensitivity analyses are prepared.

Whether it’s assessing an individual investment or the profitability of the company as a whole, our experts will help you create a systematic scenario analysis to support your decision making.