What is Financial Modelling — and why it matters
Financial modelling is the analytical process of projecting a company’s future performance through an integrated set of financial statements — the profit and loss account, balance sheet and cashflow statement. A well–defined model quantifies the impact of each decision and enables management to act based on evidence rather than intuition.
In practice, a model answers essential questions:
- Is the investment financially viable?
- What cashflows can be expected in the coming years?
- How will debt be serviced over time?
- How do changes in assumptions influence equity value and long–term sustainability?
As advisers specialising in corporate finance, we develop advanced, transparent financial models that provide owners, executives and investors with a clear understanding of performance, risk and future outcomes. All models are built in Microsoft Excel, following international standards and recognised best practice in financial modelling.
Why companies require financial modelling
A financial model transforms complex business information into structured, quantitative projections. It illustrates how decisions affect:
- profitability
- liquidity and solvency
- leverage and creditworthiness
- equity value
- operational and financial resilience
Models enable scenario simulation and help organisations quantify the consequences of any strategic, operational or investment decision.
When a financial model is essential
Financial modelling becomes crucial when a company needs to evaluate the forward impact of decisions or strategic plans. Typical use cases include:
- investment planning and capacity expansion
- capital expenditure evaluation and equipment procurement
- assessing the viability of new projects or products
- evaluating creditworthiness and preparing for lender negotiations
- business valuation (equity and enterprise value)
- annual budgeting and operating plans
- cost structure optimisation and profitability analysis
- restructuring and refinancing exercises
- preparation for due diligence in M&A transactions
Without a model, decisions are based on assumptions. With a model, they are based on quantified, transparent results.
Who benefits from our models
- manufacturing and trading companies
- service sector businesses
- investors and investment funds
- owners preparing for sale, recapitalisation or acquisition
What you receive through SEECAP’s financial modelling
- 3–5–year integrated projections - fully linked forecasts of the P&L, balance sheet and cashflow statement — automatically updated when assumptions change.
- Cashflow forecasting and liquidity analysis - the model identifies whether the company can meet operational needs, investment requirements, debt service and dividends.
- DSCR and creditworthiness analysis - we calculate DSCR and structure the model in line with lender expectations and credit methodologies.
- Investment appraisal - we incorporate capex, operating cashflows, taxation, timing, discount rates, risk factors and sensitivities to provide robust investment assessment.
- Equity and enterprise valuation We apply DCF, NPV, IRR and other internationally recognised valuation methods.
- KPI dashboards and visualisation - models include dashboards, KPIs, alerts and management–friendly level charts for fast, informed decision–making.
Our modelling methodology
- Data collection and business understanding - we analyse your business model, historical data, cost structure, financing and industry specifics.
- Defining key assumptions - Revenue drivers, margins, operating costs, capex, taxation, debt structure, working capital and operating cycle.
- Building a transparent and connected model - The model reproduces the realities of the business through clear logic and clean structure
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Testing and validation
- formula consistency checks
- stress-testing of extreme variables
- scenario analysis
- sensitivity analysis
- Final delivery - we provide a complete, lender and investor ready model.
Analytical methods we apply
- ratio analysis (profitability, leverage, liquidity)
- DuPont analysis
- sensitivity analysis
- what–if analysis
- scenario analysis (base, optimistic and downside)
- Monte Carlo simulation (as required)
- break–even analysis
- free cashflow projections (FCF/FCFE/FCFF)
- DCF, NPV and IRR valuation
- DSCR and credit capacity analysis
These methods ensure reliable insights and credibility in decision–making.
Industries we support
- manufacturing
- wholesale, retail and distribution
- IT and technology
- logistics and transport
- professional services
- agriculture and food production
- consulting firms
- energy and industrial projects
We adapt each model to the financial characteristics of the relevant industry.
Frequently Asked Questions (FAQ)
- How long does it take to build a model?
- Typically 7-20 business days, depending on complexity.
- What information do we need to provide?
- Financial statements, operational data, growth plans, investment details and loan information.
- Are your models suitable for banks and investors?
- Yes. Our models meet the expectations of lenders and institutional investors.
- Can the model be extended later?
- Yes. The model is modular and can be expanded with additional scenarios, loans, projects or KPIs.