I need help. I don't know how to start this or how to build the excel spreadsheet. This assignment requires to build a financial model for valuation of a company. Start with using historical income statements and build a ten year forecast using the information. This probably sounds easier than it is. I would suggest that you start with the unit growth (compounded) and forecast the units first. From there, you have to calculate what you will charge per unit for general revenue and guess what you want to do with Management revenue. From here, you'll need to decide what expenses are fixed and what are variable and how the forecast should be calculated. Remember that in this case that the units are driving the forecast.© BrainMass Inc. brainmass.com October 25, 2018, 9:03 am ad1c9bdddf
Please see attached for a sample forecast and Excel setup to complete a ten year forecast. I have completed the first three years, as well built in some budgeting events in 2013, 2017 and 2019. I have included those impacts in bold red font for the impacted years.
First, I compared year year over year deltas in the historical data.
This provided me with a conservative, but data-based factor for unit volume ...
This solution presents a ten year financial forecast for a fictitious business.
Financial Systems Focusing on Valuation
Consider the role of the finance department at Strident Marks. The finance department has a couple of new hires, and the CFO has asked that you spend a short amount of time with them, catching them up on some areas that are very important to the company at this time. These also happen to be areas for which Strident Marks does not yet have any training material. Write what you feel should be included in their training manual about the components of financial systems, focusing on valuation. What role does a financial department play in valuing business opportunities and what are some of the key financial concepts that valuation work must consider?
Objective: Analyze the key components of financial systems. Use effective communication techniques.View Full Posting Details