Nexfin Limited, expansion of services into financial modelling
As the partners at Nexfin Limited continue to build the company’s base of clients and prospective clients, it has become clear that most small company business leaders do not present their company equipped to raise money.
An item most lacking is a financial model which typically takes the form of a series of Excel Spreadsheets all interlinked which provide detailed underlying assumptions behind a company’s financial forecasts.
At its heart, a company is a series of financial transactions. Indeed, some would say that the financial model is the business plan, whilst the written materials exist to give a supporting narrative to the numbers.
Instinctively, we recognise that for a company to turn a profit, the expenditure items are less than the value of the sale. In a financial model, the expenditure items (running potentially into dozens) are set out, month by month over 24 months. This enables the board and investors to take a close look under the bonnet to understand and comment upon those predicted expenditure items.
What drives the top line?
Again, the model reveals how the board is predicting sales and this opens their plans up to healthy scrutiny.
The door is closed for investment, including bank loans, without the production of a financial model.
Creating a financial model requires time, patience, a keen eye for detail and a sense of what is realistic – based on previous experience. Most companies which Nexfin Limited encounters, do not have anybody internally to prepare the model and neither can they afford the day rates of an accountancy firm to put it together.
Enrique Lopez de Mesa, partner at Nexfin Limited has vast experience in this field given his corporate finance background. Following an extensive search, Enrique has overseen the appointment of an excellent young accountant who has started pulling together the numbers for our women’s fashion ecommerce company. We are confident that present and future clients will benefit from this additional, but essential, service provided by Nexfin Limited.
