Financial Modeling Pro

Business Case Templates for case building success
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  • 4th Edition, 2108
  • ISBN 9781929500086
  • by Solution Matrix Ltd
  • Excel-based system  US$49

 

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Learn to Build the Financial Model!
Build a Professional Quality Model in the Shortest Possible Time!

Build Your Financial Model in the Shortest Possible Time

Financial Modeling Pro is a complete teaching tutorial and handbook, complete with live examples and templates you can copy for your own models. Learn to build, analyze, and present the model for cost/benefit estimates and business case scenarios. Learn in the shortest possible time!

At the heart of every serious cost/benefit estimate lies a financial model. The model is the vehicle for making cost and benefit impacts concrete, for analyzing cash flow, and for recommending action. The model:

  • Shows everyone exactly where your cost and benefit figures come from.
  • Enables "What if?" questions about important assumptions for financial estimates.
  • Provides the basis for measuring and minimizing risks.

As a result, the case for choosing one action over another is made with the financial model, and without it, the case all but disappears.

A Practical Step-by-Step Guide

Nevertheless, the practical steps in model building are rarely taught or explained in clear, easy-to-follow form. This is a serious problem for those who must develop support for projects, programs, acquisitions, or major actions, but who have little or no background in finance and only basic spreadsheet skills. Yet they must produce cost/benefit estimates or a solid business case with a professional quality financial model in a very few days or weeks.

You may be in this position, or you may have many years of business case experience and still need answers to questions like these:

  • Where do I start building the financial model?  And, how do I specify model inputs and outputs?
  • What kinds of spreadsheet skills will I need? And, how do I get up to speed quickly?"
  • Exactly how do I estimate cost and benefit cash flows for my proposal?
  • How do I know my model will stand up in front of our CEO? And, will it survive scrutiny by our CFO?
  • How do I use the  model to ask "What if?" questions. And how do I use the model for risk and sensitivity analysis?
  • Most importantly, how do I "make the case" for my proposal?

Tutorial, Handbook, Working Templates

For business people facing such questions, Solution Matrix Ltd. announces a new, expanded version of the popular ebook, Financial Modeling Pro V4™.  Designed in the same tradition as the best-selling companion tool, Financial Metrics Pro, Financial Modeling Pro is
  • A practical step-by step tutorial on building the dynamic model for your cost/benefit estimates or business case scenarios.
  • A reference handbook for simple and advanced cost/benefit estimation methods and best-in-class modeling techniques.
  • Working examples and templates you can modify and copy into your own models.

Begin building your own modeling system as soon as you begin working with Financial Modeling Pro. Move step by step through Modeling Pro to complete your model.  Because you are working in a live spreadsheet environment, you can try out examples as you read about them. And, you can test template components before adding them to your own models.

The Influence Diagram: Snapshot of Your Model

Financial Modeling Pro presents influence diagramming, a simple visual technique for illustrating the structure of spreadsheet formulas and models.

Financial Modeling Pro influence diagram

 Build to An Architecture

Modeling Pro illustrates simple and complex model architecture with clear, easy to understand images.

Complex business case financial model

Use Your Model for Risk and Sensitivity Analysis

Financial Modeling pro shows how to use your model for risk analysis, using Monte Carlo simulation. The example shows a 90% confidence interval estimate for net cash flow, based on simulation with a dynamic financial model:

Financial Modeling Pro Risk analysis

What's In Modeling Pro 4th Edition?

  • The Financial Modeling Pro Tool: A 20-sheet Excel workbook, with teaching text, and live working examples. Hyperlink navigation throughout and links to online resources.
  • Introduction to financial modeling: the nature and purpose of financial models.
  • Basic skills and good practice in spreadsheet modeling
  • The Influence diagram as a first step in modeling costs and benefits. The influence diagram shows in visual terms the model structure. The diagram also facilitates input from others, shows where to use Excel formulas, and builds model credibility.
  • Building the Simple Cost/Benefit Model: Build the model to forecast a single cost or benefit item.
  • Building the Complex Model. Modeling principles for large, complex models, with a focus on usability, clarity, and accuracy. Includes business case scenario models.
  • Estimating individual costs and benefits: linear and non linear estimates, projecting from history, and benefit "ramp up."
  • Risk and sensitivity analysis with the financial model. Learn how to use the model to measure uncertainty and risks (the probabilities of different outcomes). Also use sensitivity analysis to show which assumptions are important in controlling results.
  • Working models and template examples. These adapt easily to fit your own modeling situation. Modeling Pro includes:
    • Simple models for single cost/benefit estimates
    • Cash flow statement scenarios for a simple business case
    • A complete working model system for a complex business case analysis.

Financial Modeling Pro works best with Microsoft Excel for Macintosh or Windows PCs.

Marty Schmidt, President, Solution Matrix Ltd

About the author, Marty Schmidt
President, Solution Matrix Ltd.

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