Developing a reliable financial forecast is critical for management planning. It may also be necessary in connection with obtaining debt and equity financing.
Predicting a company's financial future is difficult under ordinary circumstances: It is especially difficult for startup enterprises that are scaling rapidly and may not yet even be generating revenue. These companies often operate in industries where, not only is the serviceable market hazy, there may not even be existing companies selling similar products. The experts at Mercovus have worked with hundreds of startup businesses, from founding to exit. We have studied forecasting from the perspective of appraisal, finance, and economics. We have followed clients for years, comparing forecasted and actual performance as time progressed. As a result of our education and experience, we have developed deep expertise in creating and critiquing financial models.
At Mercovus, we analyze a company’s individual historical financial performance alongside industry benchmarks. We provide financial models based on market analyses and management planning, all the way down to the level of free cash flow. Our models are dynamic and can employ Monte Carlo simulations to test the sensitivity of results to growth rate and margin assumptions. While our models may be complex, our deliverables are concise and digestible. We understand that not everybody is a finace geek. The result is a credible financial model that provides actionable insights to inform budgeting and raise capital.
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