Build It Backwards(SM) provides financial modeling via fully customized, client-specific interactive tools that help you make optimal decisions for your business. With these tools, you can adjust input assumptions to instantly see results and thus anticipate the full range of potential outcomes for almost every possible set of circumstances.
As a result, you become prepared to handle situations before they actually occur.
Financial modeling is much more than capital budgeting or breakeven analysis. Rather, it is a powerful technique that allows the user to manipulate input variables across a range of likely values to project realistic outcomes. You can use this tool to insightfully examine budgets, economic conditions, market share, capacity, and other business situations.
Most importantly, however, you can assess the projected outcomes and then choose strategies and tactics that will bring you closer to your business goals.
The examples below illustrate how our financial modeling has benefited various companies.
Financial Modeling: Insurance Company Database
Problem:
On a monthly basis, a large local insurance brokerage firm tediously reconciled all payments and commissions that were owed to them and that they owed. Between the dozens of insurance companies they represented, the hundreds of independent agents that worked with them, and the thousands of clients they serviced, the brokerage was overwhelmed. The Controller was spending most of his time creating tedious, repetitive reports and making sure the right report was sent to the right party without duplication and without excluding any parties. The process was neither efficient nor successful.
Solution:
Build It Backwards(SM) met with the CEO and Controller to understand their business, their process, and their detailed needs. We then built and tested an initial model to determine the optimal functions, variables, and flexibility for the client. After several revisions to fully customize the initial product, the client was amazed at the model and how it could help increase efficiency and productivity.
Results:
The Controller has been able to delegate almost 85% of the work involved with the tedious monthly reports and now can concentrate on more important tasks. Between the reduced time to input data and the improved accuracy of the reports, the brokerage will save more than $80,000 annually and will continue to enjoy these cost reductions for the foreseeable future. |
Financial Modeling: Oh No, It Doesn’t Work.
Problem:
An investment banking firm was about to acquire two divisions of a publically traded firm for $120,000,000. One week before the closing, the financial model they spent months building did not work – they could not demonstrate to their two lenders that the deal would generate the cash and profits required to meet the payment schedule.
Solution:
Build It Backwards(SM) sat down with the CFO to examine the model and understand how he thought it should work. Then we traced and repaired the broken links, checked and corrected formulas, and then fully tested the model. We had to make sure it was accurate from both the lender’s point of view as well as the client’s. The model was functional and successful in less than four days.
Results:
The transaction closed on time, thus saving the client $1,000,000 in penalties and tremendous investment losses had they forfeited the entire deal, as well as enabling all potential future earnings from the transaction. |
Financial Modeling. But Which One Is Better?
Problem:
An aircraft parts distributor wanted to acquire a major asset but could not decide between two seemingly compelling alternatives. Time was short and they needed to make the RIGHT decision because of the potential long-term financial impact on the firm. The situation also was complex because the assets had different useful lifetimes.
Solution:
Build It Backwards(SM) scrutinized all information on both alternatives, determined the superior scenario, developed case studies for presentation to the firm’s board of directors, and built a side-by-side comparative model to explain why one choice was better for the firm.
Results:
In less than one week we were able to demonstrate how to obtain the better alternative, why it was superior, and ultimately saved the company $78,500 over the asset’s lifetime. |
Contact us today and learn how Build It Backwards(SM) can apply financial modeling and analysis to help you make the best decisions for your business.
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