Financial Modeling

Today’s investors want to see beyond the “bottom-line potential” — they want to understand the detailed assumptions driving a company’s financial model and the impact on the company’s financial viability should these assumptions change.

CAP Resources Financial Pro Formas are designed to do just that. All models are “assumption driven,” enabling sensitivity analysis and “what-if” testing on all variables within the financial model.   No one can predict the future, but a sound financial model should be able to layout plausible scenarios and a range of outcomes which can in turn dictate financing strategies and timelines, as well as returns on investment (IRR), cash flow breakeven timelines, and business Net Present Value analysis.

We recognize that time delays and slipped schedules are not only to be expected, they can have profound impact on cash flow and funding requirements.  Unique to industry, we also use “time” as a variable within our Pro Forma models.  Thus, our clients can gain insights into cash flow needs with a six-month selling cycle, versus an eighteen-month cycle, or impact of slippage of regulatory approvals, or cash flow benefits of shortening the revenue cycle via distribution partners, etc.

The result is a well thought-out set of financial statements, in industry standard formats, with customized assumptions and drivers designed specifically for your business. Because CAP Resources has developed a set of proprietary modules for a wide variety of industries, comprehensive Pro Formas can typically be generated in a very short time.

All financial models are developed in Microsoft Excel®, enabling CAP Resources’ clients to maintain the model as a “living” document. Our models are designed to be used by our customers – without the need for expert intervention.  Expenses are fully allocated by department, providing a well-rounded representation of departmental cost structures, and balanced expenditures ratios as a percent of revenues.

CAP Resources’ user- and investor-friendly financial models provide the following GAAP compliant financial statements as output, according to client needs:

  • ・Income Statement
  • ・Statement of Cash Flows
  • ・Balance Sheet

Our models are supported by:

Sensitivity Analysis and Scenario Planning

Capital Expenditure Summaries

Depreciation Summaries

Hiring and Salary Schedules

Revenue Assumptions

Departmental Expense Assumptions

Cash Flow Assumptions

Leverage and Loan Impact

Investment Modeling

Investment Analysis/ROI/IRR

Financial Modeling