An investment-quality Dynamic Financial Model (DFM) is an essential ingredient of capitalization and operational improvement plans. This powerful tool enables you to look at your company in powerful and revealing ways, focused on the key drivers of business success.
Our process for collaboratively developing your Dynamic Financial Model results in the creation of an interactive and informative tool that is ideal for planning a capitalization strategy, raising equity capital, attracting strategic partners, establishing Key Performance Indicators (KPIs) to support more effective management of your business, troubleshooting operational problems, implementing turnaround solutions and even selling your business.
Dynamic Financial Modeling is the core of most of our engagements as it gives direction, illustrative insight, and supporting data to everything else we do.
Support for Raising Capital
Your Dynamic Financial Model is one of The 5 Critical Things You Need to Raise Capital. It is the foundation on which your Investment Package is built, and is thoroughly integrated with every aspect of our capitalization approach – developed and proven over more than 15 years with hundreds of clients. This powerful tool and its associated processes help clarify vision, foster understanding, illustrate opportunities, establish Key Performance Indicators (KPIs) to help manage the business after funding, demonstrate viability, enhance credibility, support capitalization, facilitate investor reporting and much more.
In addition to the typical financial performances you expect of a financial model, such as profitability, cash flow, and balance sheet details, your DFM will also include business valuation calculations, capitalization structure details, and offering terms that provide a reasonable basis for equity discussions and negotiations.
Support for Operational and Financial Improvement
Our investment-grade Dynamic Financial Model tells a comprehensive story of all key aspects of your business with numbers. It contains vital data often missing from conventional financial reports and projections. The dynamic nature of our financial modeling approach includes facilitating the adjustment of key assumptions to see how they will impact your business in a way that empowers effective operational analysis, strategic planning, implementation and course correction as needed.
Your Dynamic Financial Model is also an analytical tool to help identify Key Performance Indicators (KPIs) that can enable your business to operate more effectively, efficiently and profitably. These improvements have a direct impact on increasing the value of your business. It provides the ability to enter key results each month to see how deviations from plan will impact cash flow, profitability, hiring, expenses and more. Your DFM will also support initiatives to automate data gathering, monitor KPIs, and implement process improvements.
Results
Here’s what several clients have said about the Smart Business Capital dynamic financial modeling process and the results it enabled them to achieve.
- “made the initially overwhelming process easy to understand”
- “the format and the way it is laid out is awesome”
- “extremely efficient and thorough”
- “allowed us to optimize our business model as it relates to our marketplace”
- “substantiated an $82 million valuation”
- “supported a 100% investor buyback at a 5x multiple of original negotiations”
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