In the financial services industry, the use and perceived importance of financial modelling is increasing considerably across multiple fields. Investment bankers for example are now employing financial modelling and valuation analysis to help guide them through mergers and acquisitions as well as public offerings to make sure they can increase their customers’ investments. Commercial corporate bankers meanwhile are using the very same techniques to analyse companies’ abilities to service debt. Private equity funds model a chosen business’ financial statements to calculate the effectiveness of that investment; pension funds even and insurance companies use modelling and valuation to identify assets for their portfolios.
Such widespread use demonstrates the effectiveness of financial modelling which is becoming an integral determining factor in many companies’ success. Financial and valuation skills are becoming more important all the time for company owners and executives in multiple fields as a way to asses aspects of strategic planning and analyse uncertainty. With financial modelling companies can engage in calculated risks that will minimise the danger of failure while maximising the potential rewards. By learning these skills then you will be able to create comprehensive models of companies, prepare valuation of a business, project or scenario and accelerate your career and your company as a result.