Financiers will require historical (usually three years) and projected (to cover the lives of the facilities) financial statements. The financial statements should include Profit and Loss, Cash Flow and Balance Sheets and they should be fully integrated. The package is usually referred to as "the Model".
Anvil Partners will help you to prepare the Model and present it in a manner which financiers will expect. The following are a few thoughts on preparing models:
The assumptions should be clearly set out and capable of easy modification. Many changes will be made before the model is finally incorporated in the financing agreements. There will be a requirement to run a number of downside scenarios using more pessimistic assumptions. The model will be reviewed by the reporting accountants so it should be easy to follow.
If the financing facilities include bank loans, the loan agreement will contain a number of financial covenants. These will usually take the form of a number of minimum ratios which the business will be expected to operate within in the future. You will need to input these ratios into the model and ensure that there is a comfortable margin between the projected ratios and the covenants.
If you have not prepared a set of projections or would like to improve your forecasting, a very useful tool is available on the following web site: |
 www.cashflowwizard.com |
If you have a more complex modelling need or produce a number of forecasts over the course of a year, then you may want to look at Rugged Logic. Rugged Logic is a forecasting tool specifically designed for advisors/accountants or anyone producing multiple business plans." |
 www.ruggedlogic.com |
