Financial modeling is of key importance throughout investment project execution. This will allow you to show future cash flows and project-related risks.
A financial analysis and a strategic analysis are critical elements of project planning. They are particularly important with high value investments or those financed from external sources. To conduct a detailed analyses you need a financial model with detailed projections of future cash flows and risks. Also, you will be able to present business development scenarios and an analysis of sensitivity to key revenue and costs parameters.
Financial modeling is a very broad term and it has many applications. It is used for a number of processes, such as DCF evaluations, M&A processes or business restructuring. A properly developed financial model is a core of each and every financial project, proving its validity.