Do your pro forma projections and spreadsheet models accurately reflect your business strategy and goals? Does your model help you predict performance accurately and surface your cash investment needs? Is it connected to your systems data output feeds. Do you have performance dashboards in your models with KPI’s munged from those critical systems with financial performance expectations? Can you use the pro forma model for strategy and scenario testing? Does the model give you an idea of your business growth and enterprise value over time? Has it helped you with scaling your business? Would you like the type of model that private equity firms use to analyze value, risk, and cash requirements for their business acquisitions and sales?
Typically a best practices private equity style business and financial spreadsheet model should help you test for optimal strategies. The models often focus on price penetration strategies, resource strategies, and scaling growth strategies. A really good one can contain the full rationalization of all your plans and thinking, and tet its limits.
What’s in your model?
