Forecasting Guide
Forecasting – Key Areas Financial forecasting is a vital tool for managing a business’s financial health, ensuring sustainability, and supporting growth. It provides a structured approach to planning and helps businesses navigate the uncertainties of the future with greater confidence. Strategic Planning: Financial forecasts help businesses set goals, plan for the future, and allocate resources […]
Strategic Planning Model
Client Discussion Model Webinar (15.08.23)
Valuation: Manufacturing Business
The weightings given to valuation methods can differ significantly across industries due to the unique financial structures, operational characteristics, and market dynamics of each sector. Here’s a generalised guidance on the weightings for a manufacturing business: Valuation Method Weighting Rationale Return on Investment (ROI) Valuation Low (10%) Project-based nature can make ROI a relevant metric. […]
Valuation: High Street Retailer
The weightings given to valuation methods can differ significantly across industries due to the unique financial structures, operational characteristics, and market dynamics of each sector. Here’s a generalised guidance on the weightings for a high street retailer: Valuation Method Weighting Rationale Return on Investment (ROI) Valuation Medium (15%) Project-based nature can make ROI a relevant […]
Valuation: Construction Business
The weightings given to valuation methods can differ significantly across industries due to the unique financial structures, operational characteristics, and market dynamics of each sector. Here’s a generalised guidance on the weightings for a construction business: Valuation Method Weighting Rationale Return on Investment (ROI) Valuation Medium (15%) Project-based nature can make ROI a relevant metric. […]
Valuation: Recurring Revenue Stream
When valuing a business, the appropriateness and weight given to each valuation method often depends on the specifics of the industry, the business’s financial structure, and its growth prospects. However, for a services business with recurring revenue streams, some methods will generally be more relevant than others. Here’s a general guidance on weighting for each […]
Weighted Business Valuation
When valuing a business, the appropriateness and weight given to each valuation method often depends on the specifics of the industry, the business’s financial structure, and its growth prospects. However, for a services business with recurring revenue streams, some methods will generally be more relevant than others. When should each business valuation method be used […]
7. Cashflow Valuation
This method focuses on the cash that a business can generate. Unlike the DCF method, it doesn’t necessarily account for the time value of money. Instead, it may consider historical cash flow data to derive a valuation. This approach is often preferred for businesses with steady and predictable cash flows, like some mature industries or […]
6. Discounted Cashflow Valuation (DCF)
DCF is a comprehensive valuation technique based on the idea that a business’s value is the present value of its projected future cash flows. These cash flows are ‘discounted’ back to today’s dollars using a discount rate, typically a company’s Weighted Average Cost of Capital (WACC). DCF provides a more forward-looking valuation but relies heavily […]
5. Balance Sheet Valuation
This method focuses on a company’s net book value, which is the difference between its total assets and total liabilities as recorded on the balance sheet. While it offers a snapshot of a company’s financial health, this method may not accurately represent a business’s true market value, especially if the assets are undervalued or if […]
4. Revenue Multiplier Valuation
This is a straightforward approach wherein the value of a business is calculated by multiplying its revenue with a specific multiplier. The multiplier is typically based on industry standards or the sale of comparable businesses. For industries where profit margins can vary widely, this method might be less accurate than ones focused on profitability. The […]
3. Simple Cash Payback
The Simple Cash Payback method assesses how long it will take for an investor to recoup their investment based on the business’s projected cash flows. The quicker the payback period, the less risky the investment is perceived to be. While straightforward, this method doesn’t consider the time value of money, potentially underestimating the investment’s risk. […]
2. EBITDA Multiplier
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. This valuation method uses a multiplier applied to a company’s EBITDA to determine its value. The multiplier is often derived from analysing the sale prices of similar businesses in the same industry and region. This method is useful as it focuses on operational profitability, ignoring […]
1. Return on Investment (ROI) Valuation
ROI valuation method is primarily used to understand the profitability of an investment relative to its cost. When applied to business valuation, it calculates the time it will take for an investor to recoup the investment based on projected returns. Higher ROI values typically indicate better investments. An ROI-based valuation sets the price of the […]
Business Valuation Introduction
Understanding Business Valuation: A Comprehensive Exploration When navigating the business landscape, determining the true value of a company emerges as a critical need. Business valuation is not just about crunching numbers; it’s about recognizing the present worth of a business and projecting its future value. Whether you’re aiming to buy, sell, invest, or simply understand […]
Client Discussion Model Webinar (26.07.23)
Client segmentation Model Webinar (14.02.23)
Non-Financial KPI Model
Introduction The Non-Financial KPI Model is available on the ‘Advise & Grow’ and ‘Grow & Exit’ connection types. Introduction Typically, only using financial KPIs means that you’re internally focused and probably concentrating more on the short term rather than the long term, because you’re focusing on where you came from. Non-financial KPIs won’t represent the […]
Non-Financial KPI’s Webinar (23.6.22)
Implementing Financial Advisory Webinar (24.3.22)
Client Discussion Model Webinar (22.2.22)
EVA Webinar – Helping Business Owners to Successfully Exit their Business
Target Exit Value Performance vs Forecast Report
The Target Exit Value Performance vs Forecast Report is generated from the Exit Planning Forecast and Funding Proposal Model to provide your client with an up-to-date performance overview that reports on actual performance compared to forecast performance in the period, plus current and projected valuation. Typical Use: This is the key report that makes up […]
Exit Planning Forecast and Funding Proposal Model
The Exit Planning Forecast and Funding Proposal Model is automatically pre-populated with the last 2 years trading data. This allows you to work through the process of forecasting with projected balance sheet and working capital assumptions to create an incredibly detailed forecast, including the projected valuation using a blended combination of up to 7 different […]
EVA Business Valuation Model
The EVA Business Valuation Model converts a process that is typically more akin to an ‘art form’ into a ‘mathematical science’ where all the assumptions can be clearly identified, justified, and agreed. When exploring how to value a small business there are seven potential valuation models, some may be relevant to a greater or lesser extend depending […]
Opportunity Exception Reports
Opportunity Exception Reports are only generated when specific conditions are identified in your client’s financial data, so these ‘Management by Exception’ reports give you the opportunity to truly exceed your client’s expectations by helping them identify and capitalise on opportunities that most businesses totally miss. Typical Use: There are typically three ways you can use […]
Performance vs Forecast Report
Introduction Example Report
Forecast & Funding Proposal Model (Nominal)
Introduction Sample Model To access the ‘Forecast & Funding Proposal Model (Nominal)’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal. Model Overview Introduction Historical Performance Sales Forecast Cost of Sales Forecast Overheads Forecast Balance Sheet Assumptions General […]
Client Discussion Model
Introduction So What? Guide The So What? Guide for the Client Discussion Model can be found here. Example Model To access the ‘Client Discussion Model’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal. Report Overview Below is […]
Client Segmentation Model
Introduction Example Model To access the ‘Client Segmentation Model’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal.
Board Report
Introduction Example Report An example of the ‘Board Summary’ can be accessed on the link below. Report Overview Introduction Financial Scorecard P&L Performance Balance Sheet Performance
Board Summary Report
Introduction Example Report An example of the ‘Board Summary Report’ can be accessed on the link below. Report Overview Introduction Financial Scorecard P&L Performance Balance Sheet Performance
Marketing ROI Report
Introduction The Marketing ROI Report is an indispensable tool for businesses aiming to gauge the effectiveness and profitability of their business development endeavors. By measuring the return on investment of marketing campaigns, it offers a comprehensive comparison between the revenue generated from lead generation activities and the associated costs. How The Marketing ROI Report Works: […]
Performance Trend Report
Introduction Example Report An example of the ‘Performance Trend Report’ can be accessed here. Report Overview Performance Trend Report (Introduction) Performance Trend Report (Revenue & Customer Analysis) Performance Trend Report (Margin, Profit & Balance Sheet Analysis)
Business Data Model
The Business Data Model is a crucial source of management information to answer just about every financial question your client could ever ask. Anything that is not an integral part of one of VFD’s many reports and models, can be found in the Business Data Model. This robust tool provides comprehensive analytical capabilities, empowering users to dive deep […]
CAMPARI Lending Framework
The CAMPARI lending framework (Character, Ability, Margin, Purpose, Amount, Repayment, Insurance) is widely used as a health-check for businesses when approaching a bank for lending. Helpful structure if you are applying for loans / funding. You will need a ‘business plan’, this framework is used by many lenders.
Forecast & Funding Proposal Model (Customer)
Introduction Sample Model To access the ‘Forecast & Funding Proposal Model (Customer)’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal. Model Overview Introduction Historical Performance Sales Forecast Cost of Sales Forecast Overheads Forecast Balance Sheet Assumptions General […]
Funding Proposal Model
Introduction Example Model To access the ‘Funding Proposal Model’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal. Guidance Notes The links below allow you to download the user guide for this section and supporting presentation slides. Completion […]
Performance Analysis Report
Introduction Example Report An example of the ‘Performance Analysis Report’ can be accessed here. Report Overview Introduction If You Only Read One Thing… Executive Summary Revenue Analysis Customer Analysis Revenue Channel Performance Margin Analysis Overhead Analysis Profit Analysis Forecast Extrapolation Balance Sheet Analysis
Customer Targeting Model
Introduction Example Model To access the ‘Customer Targeting Model’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal. Model Overview Part1 Part 2 Part 3
Supplier Analysis Report
Introduction Example Report An example of the ‘Supplier Analysis Report’ can be accessed here. Report Overview Introduction Key Supplier Performance Detailed Supplier Performance
Customer Analysis Report
Introduction Example Report An example of the ‘Customer Analysis Report’ can be accessed here. Report Overview Key Customer Performance Indicators Detailed Customer Performance
Business Growth Model
Introduction Example Model To access the ‘Business Growth Model’ please request a free trial of the VFD Pro platform – click here. The model is available within the ‘Demo Reports’ area of your VFD Pro portal. Model Overview Introduction Growth Assumptions Business Growth Model
Utilities Exception Report
Business utility costs are completely different to the domestic market and the scope to make savings are unbelievable. The utility suppliers are regulated, but the brokers you clients buy from are not, and 80% of businesses never bother to shop around this is an easy ‘quick win’ for you and your client. Too Much, Too […]
Customer Exception Report
The Customer Exception Report: Analysing transactions to identify new customers acquired, customers lost and the underlying trend over time, you can identify those whose client base is in decline. The sooner the problem is identified, the sooner they can start to do something about it. Sample Report Customer Analysis Scenario Modelling Marketing Effectiveness Additional Resources […]
Management Report
Introduction Example Report An example of the ‘Management Report’ can be accessed here. Report Overview Part 1 Part 2 Part 3
Business Overview Report
Introduction So What? Guide The So What? Guide for the Business Overview Report can be found here Example Report An example of the ‘Business Overview Report’ can be accessed here. Report Overview Page 1 Explanation Page 2 Explanation