The financial model consists of building the three important statements for the business:

1.    Income statement

2.    Cash flow statement and free cash flow of the business

3.    Balance Sheet

4.    Financial ratio analysis, analysing the profitability and financial status of the business model.

5.    With a rolling 24 monthly statement and projected statements for 10 years.

The financial model is used to get insight in the business for the purpose of:

1.    Determine the financial need in respect of Capital for implementation or expansion and operating    capital needs.

2.    Fund raising – Equity, Seller/owner financing, Debt funding, Mezzanine and Senior Debt

3.    Determine the value for a merger or acquisition.

4.    Management buyout of current owners

4.    Negotiation tool with investors