Careers

On Supporting a Client with a Dynamic Financial Model

The client was beginning the process of building out a manufacturing facility and wanted to explore partially financing the buildout using venture debt. In order to do so, they needed a more sophisticated and versatile corporate financial model and five-year forecast to determine how much debt the business could support.

However, the existing model was static and incapable of running different scenarios without extensive manual adjustments.

I worked with the COO/Co-Founder to develop various scenarios around key revenue drivers and financing options and to establish base, high and low cases that could be run through the dynamic financial model simply by changing the value of a single cell.

This model allowed the founders to see the company’s “path to profitability” in future years as well as the cash burn required to achieve profitability under multiple operational and financing scenarios. (Learn more about this type of analysis: Scenario Analysis and Sensitivity Analysis in Financial Forecasting.)

The model is also being used as the basis for all financial projections required as part of the due diligence process associated with financing the new manufacturing facility.

mike dynamic forecast model thumbnail

To learn more about forecasting, you can also read our article on dynamic cash-flow forecasting on CFO.com.

Careers at 8020 Consulting

We take pride in nurturing long-term relationships with our team members and our clients. If you’re interested in working on our team of accounting and finance consultants, visit the careers section of our website to learn more about life at 8020. You can also put in an application for consideration by following the instructions at the bottom of the page:

New call-to-action

About Mike

Mike has more than 15 years of experience in roles requiring expertise in strategic planning, forecasting, budgeting, business valuation, financial modeling and both buy-side and sell-side M&A transaction support. He has worked with clients across several industries, including entertainment, e-commerce and subscription, real estate and consumer products. Prior to 8020, he served as Finance Manager at Elements Behavioral Health, where his responsibilities included leading the budgeting and forecasting processes as well as acquisition transaction support. Additionally, he served as a Sr. Associate in the Private Capital group at Union Bank, where he focused on executing middle-market acquisition opportunities across various sectors. Mike holds an MBA from the Graziadio School at Pepperdine University, a B.A. in Economics from Brock University and is a CFA Charter holder.

Categorized in:

similar articles

Learn to think and approach problems like our financial consultants.

Financial Planning & Analysis

3 Stages of Effective Cost Savings Initiatives

Cost cutting – it’s a goal that nearly every company aspires to achieve. However, unlike other areas of business improvement, there is no public playbook on how to accomplish these desired targets. Whether a firm is undergoing a full restructuring plan mandated by a Chapter 11 filing, maximizing the profit and loss statement prior to… View Article

May 31, 2023Aniv Nayar

Financial Planning & Analysis

FP&A Strategies for Food & Beverage Manufacturing: Maximizing Growth and Profitability

The food and beverage industry is mammoth and a thriving part of the world economy. Globally, in 2021, the food and beverage manufacturing market totaled $5.8 trillion, $6.8 trillion in 2022 and is expected to reach around $7.2 trillion in 2023. The compound annual growth rate (CAGR) is 8.7%, which will result in expected growth… View Article

May 24, 2023Azar Benabou

Financial Planning & Analysis

Recommendations for Aligning Forecasts and Targets Across Functions

While Finance teams own annual budgets and quarterly forecasts, other functional teams such as Sales, Marketing and Operations will often have separate finance-related forecasts, targets and goals for their respective needs. This can occasionally cause confusion to observers as to the “true” finance forecast when different teams provide different responses. Since Finance teams should be… View Article

May 11, 2023Marco Moreno

See All

Back to Insights