CFM program: 12 topics for complex modeling #financialmodeling #chartered #finance | Financial Modeling Institute (FMI) posted on the topic | LinkedIn (2024)

We are pleased to welcome Scott Rostan, Founder, CEO, Principal & Instructor at Training The Street (TTS). During this webinar, Scott will cover how to approach M&A analysis.

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Financial modeling is a multi-disciplinary skill that involves proficiency in accounting, finance, Excel, and also design.A well-designed model becomes a powerful communication tool that builds confidence in the reader and leads to better decisions.Include these 5 sections to ensure your model is designed to achieve optimal flow.1️⃣ Cover PageA well-designed cover page, complete with clear headings, sets the stage by explaining the purpose of the model and inspires confidence in your decision makers. Your financial model is a financial presentation.2️⃣ Executive SummaryThe first thing a reader of a model wants to know is "What's the answer?" Don't make your readers flip through the model to get to the answer. Put your summary up front and they're guaranteed to keep reading.3️⃣ AssumptionsAs soon as your readers understand the answer, the next thing they want to know is "How did you get there?" Your assumptions tell the story of how you arrived at your answer.4️⃣ Scenarios PageThese are the key driver assumptions that are hard to forecast and hard for management to control, but can have a big impact on the success or failure of the company.5️⃣ The EngineThe final section of an optimal model is the engine; this includes the financial statements and the schedules that were used to calculate the results. Most models require schedules to calculate each of the primary line items on the company's financial statements.Forecasting scenarios presents unique challenges in financial modeling. How do you ensure your models are both robust and adaptable? Let us know in the comments!Like this post on 5 Key Sections of a Great Financial Model? Let us know in the comments if you’d like to receive a PDF on Financial Model Best Practices. #financialmodeling #FinancialModelingInstitute #tips #bestpractices

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When it comes to financial modeling, there are two main approaches to tab structure: vertical and horizontal, while some people use a hybrid of the two.Ultimately, the choice of structure depends on the specific needs of the financial model and the preferences of the financial professional.- A vertical model refers to a model in which most of the schedules and financial statements are built on the same tab within the Excel file.- A horizontal model refers to a model in which most of the schedules and financial statements are built on different tabs within the Excel file.- A hybrid model refers to a model that is a blend of the previous two approaches. For instance, there could be one sheet with the financial statements, and another sheet with all the schedules. Regardless of the approach selected, it is important to use best practices and follow recommended tab structures to ensure a comprehensive and efficient modeling process.Like this post on Tab Structure? Let us know in the comments if you’d like to receive a PDF on Financial Model Best Practices. #excel #spreadsheets #financialmodeling

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We are pleased to welcome Ian Bennett, MFM, Deals Modelling Leader at PwC Australia. During this webinar, Ian will cover best practices that he has learnt from a career as a professional financial modeller. Register Now.#financialmodeling #event #community

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In today's competitive business landscape, flexibility in models is critical, as stakeholders typically like to know what the impacts of changing key drivers would do to the overall business under various scenarios.A robust and effective model must seamlessly transition between different operating cases, or scenarios, while allowing these key assumptions to dynamically flow through the entire system, ultimately reflecting in the financial statements.This understanding of the various scenarios allows for financial decisions to be made by strategically envisioning potential outcomes.There are many functions you can use when it comes to building a formula to run your Scenarios. In the AFM program, we discuss three of the most common functions for this purpose:1️⃣ CHOOSE2️⃣ INDEX3️⃣ OFFSETHowever, there are many other functions that can be used to run the scenarios, including XLOOKUP and SWITCH. Stay tuned for upcoming content on these functions. Let us know in the comments below which is your favorite, or if you use a function that isn’t noted above!Now that you know the Index, Offset, and Choose Functions, let’s build a combo box!Being knowledgeable on Excel tools allow you to streamline your financial models and ensure they are powerful communication tools by making them user friendly.One of the greatest advantages of using forms and drop-downs is their visibility. Unlike other techniques such as data validation, the pull-down menu remains visible even when the cell is not active. This feature ensures that your model remains transparent and comprehensible, both during analysis and when presenting printed copies.Not only does the pull-down menu offer a cleaner and more intuitive experience, but it also acts as a safeguard against errors. By restricting the values that can be entered into the switch cell, you can minimize the risk of data inconsistencies and miscalculations.#financialmodeling #scenarioanalysis #excel #excelfunctions

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This edition of the FMI monthly LinkedIn newsletter features recent FMI news, Key Attributes for Financial Models, an exclusive event and much more.#newsletter #financialmodeling #event #tips

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We are pleased to welcome Giles Male, co-founder at Full Stack Modeller. During this webinar, Giles will cover his experience, strategies, and study tips for preparing and achieving the Chartered Financial Modeler (CFM) accreditation. Register Now.#financialmodeling #accreditation #chartered #event #community

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Storytelling is a powerful tool within the finance industry.A three-statement financial model is just one part of the story. To create a comprehensive narrative, an executive summary, clear assumptions, and all scenarios must be laid out, giving the story a beginning, middle, and end.When conveying the story of a financial model, conciseness and ease of understanding are crucial. Executives typically seek a summary of the model first, followed by curiosity about the assumptions used in its creation. Subsequently, the story delves into the base, better, and best-case scenarios that were considered, concluding with all the schedules and statements that form the model.By captivating attention throughout the entire storytelling process, you can instill confidence in connecting the dots flawlessly within an error-free financial model, adhering to the best practices of an Advanced Financial Modeler.Ultimately, a well-crafted story outlining various scenarios, supported by accurate data and simple formulas, empowers decision-making. When coupled with great models and a compelling narrative, strategic decisions become clearer and more effective.To learn more, visit: https://hubs.la/Q02lD-K_0#financialmodeling #communication #storytelling

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A strong financial modeler needs to demonstrate proficiency in Excel, Accounting, Design, and Finance. Many of the specific skills used by financial modelers are listed below.Skills of an Advanced Financial ModelerWhat decision makers see:• Model Design• Operating Schedules• Financial Schedules• Financial Statements• Scenario Analysis• Storytelling Skills• Capital Structure ModelingWhat decision makers don't see:• Risk Mitigation• Quick Model Editing • Informed Decision-Making• Easy to Edit and Review• Excel Keyboard Shortcuts#FinancialModelingInstitute #financialmodeling #financialmodel #excel #skills

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