Financial modelling is the process of building structured, quantitative representations of a business, project or transaction so decision-makers can see the financial consequences of different choices before they commit. A consulting engagement will gather historical data, agree key drivers (volumes, prices, margins, capex, working capital, funding), and build a transparent, assumption-driven model — usually in Excel — that produces integrated income statement, balance sheet and cash-flow forecasts. Good models also include sensitivities and scenarios so management can test “what if” questions such as demand shocks, cost inflation, delays or changes in financing. This is essential for investment approvals, valuations, M&A, project finance, budgeting and even dispute support. The real value is that a robust model makes decisions defensible to boards, lenders and auditors because the logic and numbers are clear.
F
Financial Modeling: What it actually means?
