FINANCIAL MODELING

Imagine, working with a Tool that gives you processed information. You want to cost your Strategy in order to develop your Business Plan, stress test your strategic options and investment decisions, negotiate with financiers, forecast business/product/project performance, or simply understand the scenarios and options underlying your Strategic Plan. At Allaboard, we have developed Financial Modeling Tools that enable companies to make the right strategic decisions in complex transactions and situations. Allaboard’s Financial Models are integrated Tools with modeling and analytical capabilities that provide clients from Government Ministries and Agencies, Regional and Local Authorities, State Enterprise and Private Sector segments with the requisite information and Intel whenever strategic decisions are being taken under complex variables and situations. Our Financial Models perform detailed analysis and accurate description of the Programs and Projects that the organization is undertaking. The modelling process involves (i) assumptions generation and testing, (ii) parameter driver definition and data input, and (iii) historical information mining for baselining and benchmarking Business outcomes.

Under Financial Modeling, some of the very steps we undertake include forecasting the performance of products and services per given assumptions, performing Sensitivity Analysis of very key assumptions, validating revenue drivers and cost drivers, performing detailed Capital Investment Appraisal, provision of Key Performance Metrics at a click of a button, and clarifying the most feasible and viable Strategic Option. Once we have completed the Financial Model, we then use the output as input into the Business Plan write up. The Business Plan will thus comprise of the Strategic Plan, Operational Plans and the Financial Model. The main components of our financial modeling process are;

 

  • The Revenue Model, which determines the revenues expected to accrue to the organization based on customer and pricing assumptions.
  • The Pricing Model, which determine the prices for your products or services based on key factors such as positioning, production costs and intended margins.
  • The Capex Model, which determines the total cost of capital expected to be employed to upgrade or procure major assets required to expand the organization’s capacity to deliver on its programs and projects.
  • The Opex Model, which determines the operational or recurring expenditure i.e. incurred by the organization in running to run its day-to-day operations or activities.
  • Funding Requirements, which is the GAP between Revenue generated per period under consideration, and Total Costs (Capex + Opex) incurred during the period under consideration.