Download Baker Tilly's financial modelling deal review (PDF - 2mb)
Financial models are the backbone of modern corporate decision making. They are now so ubiquitous, we are sometimes in danger of forgetting just how important they are and how much we rely on them.
Back to basics
In fact they are so much part of the furniture that it is worth reminding ourselves what we mean by the term financial model. At is simplest, a financial model is a decision support tool; the clue is in the title: financial model, a model or simulation of the financial implications of a possible course of action.
A good model (and by extension a good modeller) focuses on the key performance measures and drivers of the decision process – the material, critical assumptions and their commercial impact – and avoids getting bogged down in a distracting mire of detail. This is harder than it sounds, particularly given the proliferation of raw data now available to businesses.
In the current business environment, timely, robust and above all relevant analysis becomes even more vital. Cash flow forecasts and management decisions are coming under far closer scrutiny from stakeholders than before and it is vital that supporting analysis and models can withstand the heat. The price for weak or flawed analysis is, at best, damaged management credibility or reputation.
More than spreadsheets
All our financial modelling work at Baker Tilly is aimed at supporting clients through their decision processes and the associated external inspection – either through building flexible and robust tools to help forecast cash flows or analyse projects, acquisitions and investments, or through providing assurance that such tools are ‘fit for purpose’.
Whatever the sector, a well constructed financial model should bring clarity and speed to the decision making process. It is not about spreadsheets or clever Excel coding, it is about distilling a complex set of information and data into a handful of key measures that help management teams and investors understand the potential impact of their actions.
It is also not just a product – we see financial modelling as an end to end service – the value to our clients comes from the process of challenge and development, from the freeing up of valuable management resource, and from the access we give them to leading edge expertise. This focus, on modelling as a service, underpins all we do.
One size does not fit all
Baker Tilly has a well established financial modelling group who have been delivering a wide range of services to our clients. We believe we bring a genuinely fresh approach; our experts are pragmatic, commercial, open-minded and mercifully free from jargon and dogma. We pride ourselves on listening to our clients, understanding their issues and proposing solutions tailored specifically to their needs.
This review showcases some recent assignments and you cansee what our clients have to say about our talented people and how we added value in each of their transactions through the financial modelling process. We hope these case studies give you a feel for the breadth of our offering, our approach to client service and delivery and for the specific aspects that we believe make a difference.
Alistair Hynd
Head of Financial Modelling
Download Baker Tilly's financial modelling deal review (PDF - 2mb)