► Financial Projections to Obtain Financing –design, develop and create a very clear Financing Model that meets the requirements of a sophisticated audience.

You should have one set of Financial Projections that reflect management’s best estimate of the company’s anticipated performance for the next four years, and not high, likely and worst case scenarios

When dealing with a sophisticated audience, it is important to understand the difference between:

Pro Forma – Presentation of financial information that reflects the effect of an assumed event (e.g., capital infusion, merger, acquisition, IPO) set forth in a pre- and post-transaction balance sheet.

Projection – Prospective financial statements that include one or more hypothetical assumptions, i.e., about an entity’s future course of action.

 Forecast – Prospective financial statements that are an entity’s expected financial position, results of operations, and cash flows, i.e., the entity will continue to function in the manner in which it is currently engaged.

These terms are not interchangeable.

What to expect:

  • Assumptions that anticipate issues raised by a sophisticated audience.
  • Integrated statements of income and expense, cash flows and balance sheets to provide confidence that the strategic plan for your business is achievable by integrating the past four years, the estimates of the current year and four years of projections.
  • Financing matters sensibly addressed, including investment highlights, source and use of proceeds, and liquidity events.
  • Detailed Report –include an analysis of your company’s financial projections that includes a set of benchmark values by key ratios, such as days receivables and current ratio, based on a data base of millions of companies organized by SIC code and revenue range, updated periodically and annually to ensure timely industry standard information.
    • Graphs, ratios and trends
    • Financial analysis and scoring system
    • Industry peer comparisons – private or public companies
    • Industry specific tips for improvement
    • Current trends and regression analysis highlighting potential trouble areas
  • ValuDrivers™ and risk factors emphasize adequate, risk adjusted determination of capital requirements.
    • ValuDrivers™, the factors that positively impact the value of a business, are aligned and integrated.
    • Risks, the factors that negatively impair the value of a business should be researched, anticipated and to the extent appropriate, mitigated.