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SOC Attestation
Independent opinion attesting to the commitment of service providers to sound internal controls
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Audit and review of financial statements
Credibility of your company's accounting activities in accordance with the legislation in force
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Assurance of Non-Financial Reports
It aims to meet the needs of the business, being able to contemplate different bases and sectorial and global development guidelines
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Assurance of Integrated Reporting and Sustainability Reports
Differential for rendering accounts and demonstrating the engagement of organizations in relation to sustainable practices and their generation of value
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Assistance in accounting definitions
Quality, comparability and transparency of financial information in your company
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Accounting, Labor and Tax Compliance
Permanent diagnostics and advice to raise the level of controls and mitigate risks
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Pre-Audit Diagnosis
Diagnostics capable of offering support according to the purpose and needs of the business
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Assessment reports for consolidations, spin-offs, and mergers
Technical evaluation of net assets at book value or of net assets adjusted to market prices
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Capital Markets
Complete analysis and preparation for strategic fundraising operations
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Business Consulting
Approaches compatible with technologies that support corporate decision-making and stimulate innovation
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Strategy & Transactions
Performance of operations and capital structure to enable more efficient corporate transactions
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FIDS – Forensic, Investigation & Dispute Services
Identification, protection and prevention of risks to preserve business integrity and security
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Risk and Compliance - BRS
Risk management, process improvement to achieve strategic objectives
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Judicial Administration in Business Recovery
Global teams and structures to work with the deep knowledge, legality and ethics that the issue requires
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Business Restructuring and Recovery
Assertive plans and agile actions to recover your company's strategy and performance
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Global Mobility Services
International mobility programs in compliance with local tax legislation and optimized costs
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Home page
Financial Statements
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Transfer Pricing
Review or elaboration of calculations that allow the most assertive compliance in operations abroad
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Labor & Social Security
Identification of existing risks and opportunities according to the current moment and future perspectives
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Direct tax
Agile strategies for complying with laws and enabling regional and sectoral tax incentives
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Indirect tax
Specialized support capable of increasing legal certainty involving different laws and jurisprudence
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International Tax
Analysis and planning of scenarios in different jurisdictions, with integration into the Brazilian scenario
What is financial modelling?
Financial modelling can help estimate the impact of your business decisions under different conditions. To do that, a financial model will build a financial picture of the business itself as well as the market in which it operates. That picture can be as simple or as detailed as you need. For a simple model, you could use the high-level information found on historical financial statements, such as historical revenue growth, fixed vs. variable operating expenses, and balance sheet accounts as a percentage of revenue. For more detailed analysis, you can break that information down into its underlying parts and growth drivers and treat each item as an input. The level of detail will ultimately be determined by the needs of the business.
Once the inputs are set, you make a series of assumptions and then test what happens in various scenarios. As a simplified example, let’s say you’re planning to invest in new equipment that will double your production and you assume that you can sell at least 50 per cent of the increased capacity within six months. The model then evaluates what the effect on your business would be in different scenarios—what happens if you only sell 40 per cent in six months? What about 20 per cent? These considerations could drastically affect your decision to expand production.
Why use financial models?
According to Grant Thornton’s International Business Report, a rise in optimism among mid-market businesses is leading to a rise in plans to invest in themselves. Nearly half (45 per cent) intend to invest in new plants and machinery and 56 per cent plan to invest in technology. Analysing potential outcomes can help make those decisions and develop long-term plans. Considering what will happen under varying conditions years into the future can help to properly assess the potential risk embedded within your plans.
Recently, we had a client planning to invest $5 million to expand their operations and asked us to develop a simple model to see how the expansion might go. As we ran the model and stress-tested the underlying assumptions, we came to see that the only way the project would yield a positive return on investment is if interest rates were lower. The client ultimately decided to put the project on hold until rates improved. By doing their due diligence and analyzing their project, they saved themselves from a decision that could have threatened the health of their business.
Even if owners and managers are confident in their plans, sometimes investors and financial institutions will ask for more. A financial model can make it easier to secure financing by providing evidence of a project’s viability in the financier’s own language: numbers. Additionally, including models in a pitch to potential investors adds considerable credibility to your business plan and to you as a potential business partner.
What should be included in a financial model?
A financial model should at its core illustrate the financial statements—income statement, balance sheet, and cash flow statement—forecasted into the future. Often the user of the financial model can benefit from additional layers of information to help make high-level assessments of the underlying detail. Key performance indicators, graphic depictions, benchmark data and debt covenants are all value-added components that can take your financial model to the next level.
How can I begin using financial models?
While simple scenario planning and modelling can be done in a basic spreadsheet, professional advice will unlock the true power of a financial model. Identifying and testing assumptions, pulling together the right data and conducting a comprehensive analysis can be daunting, but our advisors can help guide you through the process.