Business and Financial modelling and model review


A well structured, consistent and flexible financial model is a critical tool for both raising finance and assessing the impact of strategic choices upon your business. The effective financial model is an essential tool for each company to the following processes: future planning, financial or strategic decision making. Our colleagues have extensive experience both in financial modelling and in model reviews with international background as well.

Financial models need to be reviewed over and over again. The need for a rigorous and independent review of the financial models becomes more pressing in the Companies’ life as time passes. Companies also may need model reviews to debt and equity raisings, transactions, official authorizations, institutional regulations etc.

 

Business valuation

The business valuation is entitled to assess the fair market value of a company/ enterprise/ shareholding as a part of the transaction support. Our professional consultant team help our client to make the right decision during the transaction process.
There are three internationally accepted methods to assess the fair market value of a company or a shareholding:
  • The Earnings power based approach is an analysis of the rate of return, based on the net present value of expected future free cash.
  • The Market approach is a comparative analysis of the acquisition prices of similar share packages.
  • Under the Net asset method, the market value of a company is the difference between the market values of the company’s assets and the company’s liabilities.
Our consultants chose the appropriate method of valuation based on the characteristics and the owner’s/management’s need of the target company.

 

Intangible asset (brand, licence, know-how) valuation

Intangible asset valuation is one of our special valuation fields. Businesses usually don’t give enough attention to the value of their intangible assets. It is worth to assess and to follow up the fair market value of the company’s brand, licence or know-how, because businesses may get into a more advantageous situation, than without knowing the market value of their intangible assets.
In the followings we summarise the reasons of presenting the fair market value of the intangible assets in companies’ books:
  • The Company’s debt to equity ratio improves, thus the company can get funds (debt or equity) more likely;
  • The depreciation of the brand value can reduce the company’s tax liabilities;
It can support the controlling and value base management of the company.

 

Business and Financial modelling and model review

A well structured, consistent and flexible financial model is a critical tool for both raising finance and assessing the impact of strategic choices upon your business. The effective financial model is an essential tool for each company to the following processes: future planning, financial or strategic decision making. Our colleagues have extensive experience both in financial modelling and in model reviews with international background as well.

Financial models need to be reviewed over and over again. The need for a rigorous and independent review of the financial models becomes more pressing in the Companies’ life as time passes. Companies also may need model reviews to debt and equity raisings, transactions, official authorizations, institutional regulations etc.