Financial Modeling & Strategy

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 lay out 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.

CAP Resources recognizes 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-friendly, 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

For each of the above:

Ability to specify inputs by Month, Quarter, or Year as required (or a combination of all three — for instance First Year by Month, Years Two through Three by Quarter, Year 4 and Beyond by Year)

Multiple output options (very detailed for due diligence analysis, summaries for business plans and board presentations, etc.)

Financial Statements are further supported by fully documented:

  • Sensitivity Analysis and Scenario Planning
  • Capital Expenditure Summaries
  • Depreciation Summaries
  • Hiring and Salary Schedules
  • Revenue Assumptions
  • Expense Assumptions by Department
  • Cash Flow Assumptions
  • Leverage and Loan Impact
  • Investment Modeling
  • Investment Analysis / ROI / IRR