What is Financial Modelling and How to Build a Comprehensive One?
Investment banks decide a public-going company’s valuation by creating financial models. Private equity firms depend on financial modelling to make investment decisions. Mergers and acquisitions happen after creating detailed financial models. And due diligence into a company’s future is also decided by taking the help of financial models. In this fast-paced world where businesses are always looking to outrun the market, predicting the future is some way is important. Financial models help managers and executives do just that where decisions get based on facts and numbers instead of intuitions and assumptions. With the above it is clear that people who know how to build a financial model will always be on-demand. What is financial modelling? Financial modelling is a technique with which businesses forecast financial futures to understand possible performances. Based on historical data and a few logical assumptions, financial models can paint the growth or dip curve in te