BHVC builds highly detailed five year pro forma financial statements, including assumptions, income statements, balance sheets, cash flow statements, key measurements, and a valuation of the business. We use financial modeling to accurately demonstrate the performance of your business portfolio. Models are built using either Microsoft Excel or by using planning software from our partner company, Alight Planning (www.alightplanning.com). Various scenarios (best case, worst case, most likely) can be quickly developed from either model type.
BHVC offers the proven financial modeling services that are performed by the experienced professionals who get results for a wide range of clients in various industries. Each financial model consists of multiple worksheets, each with its own purpose:
- Control Center – Built in macros enable the model to be printed out in presentation format so that the major details can be reviewed off-line.
- Summary Page – Presents a five-year overview of Profits and Losses
- Assumptions – All assumptions feeding into the model are displayed in one location for easy scenario analysis. These assumptions include revenue drivers, sales volumes, prices, growth rates, Costs of Goods Sold (COGS), employee expenses, fixed & variable expenses, capital expenditures, marketing expenditures, corporate operating expenses, and other accounting and tax assumptions.
- Details Page – This page takes all of the assumptions and drives them into an income statement, balance sheet, three types of cash flow statements, and a variety of sub-reports such as HR, Professional Services, CapEx, Depreciation, Allocated Overhead, Real Estate, Taxes, and Financing. Each of these reports is calculated monthly, quarterly, and annually for the five year forecast period.
- Funding Page – Once the Assumptions and Details are completed, the funding page enables management to understand the cash needs of the business and to determine how much capital will be needed to keep the business going and when that capital will be required in order to maintain a reasonable reserve.
- Graphics – The model will also automatically create graphics based on the financial details that includes a revenue analysis and a profitability chart.
- Net Present Value – This page shows the approximate valuation of the company based on the required investment and the forecasted cash flows. This valuation is not to be confused with a formal detailed valuation, but is to be used as a guideline for preliminary negotiations with potential investors.
- Additional Pages – There are several other worksheets in the model that support the printed version of the model including a Cover Page, Table of Contents, and a Labels page.
Our financial modeling services offer many advantages. The contents of this model were developed over a number of years and represent one of the most comprehensive start-up financials models available. We have used other types of software in building start-up financial models, but have yet to find one that rivals the flexibility that Excel models can offer. Developing such a model from scratch would take hundreds of hours, yet by working with Blue Horizon Venture Consulting, you can harness the power of this model, that will be custom-built specifically for your business and industry from a base platform.