We work business stories and ideas into numbers. The financial forecasts are a function of strong business fundamentals. We build a deep understanding of your business- its prospects within the industry and future market share to gauge a reasonable future cash flow. The key drivers of the financial model are in junction with your business:
- Nature of the model- The purpose lays the very foundation of creating a financial model, and there are a range of reasons specific to your business such as raising capital, making acquisitions (business or asset), organic growth of the business, selling or divesting assets or business units, capital allocation in priority projects or valuing a business, among others.
- Key performance indicators- The industry of your business and the area of business to be tracked provide key performance indicators.
- Revenue drivers- Passenger revenue is considered to be a relevant revenue driver for the airline industry. In similar manner factors that derive revenue growth for your business are ascertained.
- Capital structure- The right mix of debt and equity is a deciding factor for your cost of capital.
- Capital expenditure- The capital expenditure requirement is a key factor in deciding the free cash flows for your business.
- Expenses- Whether it’s operational or a financial expense, it is taken into account while integrating the financial statements.