Once you have raised capital, this becomes really paramount..
July 19, 2024
by a professional from University of Calcutta in India
After you've got the funding and found a potential business to acquire, evaluating it thoroughly is crucial.
When looking at the business plan, your financial model should focus on these five key areas to ensure good returns:
1. Operating Levers: What actions can maximize value?
2. Debt Capacity: How much debt can the business handle?
3. Resource Requirements: What resources are needed to support growth?
4. Exit Valuation: How much could the business be worth when you sell it?
5. Exit Distribution: How will funds be distributed at the time of exit?
Financial modeling isn’t just about numbers; it’s about making smart judgments, assumptions, and understanding what has driven value in the past.
As a financial modeler, I help Searchfunders make the best judgments and assumptions about the business they’re acquiring. My goal is to ensure the model provides clear guidance and answers to these key questions. Feel free to reach out if you need assistance.
What are the other things that the model should answer?
from The Johns Hopkins University in Gainesville, FL, USA
from University at Buffalo, State University of New York in Seattle, WA, USA