Financial Modelling and Feasibility
A model is only useful if the assumptions behind it can be challenged. Most models presented to boards produce a single number with the reasoning buried in a formula somewhere, which makes disagreement impossible and the number unaccountable. We build models where every input is visible and the sensitivities are exposed, so the discussion is about the assumptions rather than the output.
1
Question
What decision is this for
2
Structure
Inputs, calcs, outputs
3
Build
Three statements linked
4
Test
Sensitivity and breakage
5
Present
So it can be argued
How We Build It
01
Defining the Decision
A model built without a decision in mind answers nothing. We establish what will be decided, by whom and against what criteria, because that determines the structure and the level of detail worth building.
- The decision the model must inform, stated explicitly
- Decision criteria and thresholds established
- Audience for the output identified
- Level of detail matched to the decision, not maximised
02
Structuring the Model
Inputs, calculations and outputs kept separate. A model where an assumption is typed into the middle of a formula cannot be interrogated, and cannot be trusted by anyone who did not build it.
- Inputs isolated on a dedicated sheet
- Calculations separated from presentation
- Consistent formulas across periods
- Error and integrity checks built in throughout
03
Building the Financials
Three linked statements rather than a profit projection alone. Businesses fail on cash while reporting profit, and a model showing only the income statement hides exactly the risk that matters.
- Income statement, balance sheet and cash flow linked
- Working capital modelled from operational drivers
- Funding, interest and repayment schedules
- Tax and depreciation modelled rather than estimated
04
Sensitivity and Scenario Testing
We test what breaks the case. A model that only shows the expected outcome tells a board nothing about risk, and the useful question is always which assumption has to be wrong for this to fail.
- Sensitivity on each material assumption
- Scenario versions rather than a single projection
- Break even identified per key driver
- Assumptions ranked by impact on the outcome
05
Presentation and Handover
Output built for the audience, plus the model itself documented so your team can run it afterwards. A model only we can operate is a dependency rather than an asset.
- Summary output built for the decision audience
- Assumption log documented in plain language
- Model handed over with a walkthrough
- Team able to update and rerun independently
What You Receive
- A three statement model with traceable, isolated inputs
- Assumption log written in plain language
- Sensitivity analysis on each material assumption
- Scenario versions rather than a single projection
- Summary output built for the decision audience
- Model walkthrough and handover to your team
Indicative Timeline
A focused feasibility model takes two to four weeks. Complex transaction or multi entity models take longer, and the constraint is normally obtaining reliable input assumptions rather than the build itself.
- Decision definition and assumption gathering: one week
- Structure and build: one to two weeks
- Sensitivity and scenario testing: three to five days
- Presentation and handover: within a week
What We Model
Modelling work sits at decision points where the numbers determine the answer.
Feasibility
Whether a proposed venture, site or contract can work financially before committing to it.
Business Cases
Investment cases requiring a defensible financial basis for board or funder approval.
Funding Models
Debt and equity structures with covenant testing and repayment capacity.
Valuation Support
Financial input into a valuation, including forecast underpinning and sensitivity.
Budget Models
Multi year budget models built from drivers rather than from last year plus a percentage.
Scenario Planning
Structured alternatives where the outlook is genuinely uncertain rather than merely unknown.
Frequently Asked Questions
How accurate will the projections be?
Wrong, in the specific sense that every forecast is. The value is not in the point estimate but in knowing which assumption the outcome depends on, and how far it can move before the case fails. That is what sensitivity analysis exists for.
Can you use our existing model?
Often, and we review it first. Where the structure is sound we build on it. Where assumptions are hardcoded into formulas the honest answer is usually that rebuilding is faster and safer than repairing.
Who owns the model afterwards?
You do, along with a walkthrough so your team can operate it. A model only the adviser can run creates a dependency, and we would rather leave you able to rerun it as circumstances change.
What makes a model auditable?
Separated inputs, consistent formulas across periods, no hardcoded numbers inside calculations, and integrity checks that fail visibly. A reviewer should be able to trace any output back to an input without reverse engineering.
Will you present it to our board or funder?
Yes, and it is usually worth it. Models are challenged in the room, and being able to answer an assumption question immediately is considerably more persuasive than taking it away.
Is this the same as a valuation?
No. We provide the financial modelling that supports a valuation, but a formal valuation opinion is a separate engagement with its own standards, and we would say so where that is what you actually need.
Related Services
This sits inside our Business Advisory practice. Related work: Management Accounts and Budgeting where the model becomes the operating budget, and Tax Planning and Structuring where structure affects the outcome.
