FINANCIAL SIMULATION

FINANCIAL MODELS IN EXCEL

We offer tailor made financial simulation models in Excel format to support the presentation of business plans, business valuation and project finance analysis.

Additionally, we offer consulting services related to these matters.

We offer a selection of working tools (Excel spreadsheet simulation models) basically to be used in the fields of financing of investment projects (project financing) and in the valuation of start-up and existing companies. 

Financial projections in Excel to analyze investment projects
The financial simulation models to analyze investment projects are based on the analysis of the income and expenses related to the project, taking into account when they are actually received and delivered – that is in the cash flows obtained in said project- in order to determine if they are sufficient to support the annual debt service (principal + interest) and to adequately repay the capital contributed by the partners. These financial simulation models in Excel allow us to give a more or less adjusted measure of the profitability that we can obtain with the investment project before starting it. They also allow you to compare it with other similar projects, and, where appropriate, make changes to the project that are deemed appropriate to make it more profitable.

Financial projections in Excel for business valuation
On the other hand, there are many methods to value companies. One of the most useful classifications of these methods is the one that distinguishes between those that are based on analyzing historical data, as opposed to analyzing future data. There is a fairly general consensus among experts when it comes to recommending valuation methods that are based on future estimates, in relation to those that prevail over data from the past. The main reason is to consider that a business is worth while it is capable of “generating wealth”, and that generation of wealth will occur provided that the business is capable of generating “positive cash flows” for shareholders, once that all operating, investment and financial costs have been covered. Financial simulation models based on the “discounted future cash flows” serve to give an adjusted approximation of what the business value may be, based on those expectations of wealth generation in the future.