Whether you are a seasoned business owner or have never owned a business before, Financial Modeling Services will give you a significant advantage in creating P&L projections, determining free cash flow and in negotiating a business transaction.

Financial Modeling Services Will Help You Make the Right Decision on a Business Purchase or Prevent You From Making a Wrong Decision That May Save Years of Pain and Much of Your Life Savings

In a business transfer transaction, both the buyer and seller need to come to mutual agreement of the business valuation and terms in order for the transaction to occur. When a buyer can provide the seller a reasonable explanation for a business valuation and necessary documentation to support it, a transaction is more feasible. Regardless if a business broker is acting in a transactional capacity or not, the broker does not represent you and is not obligated to advise you on the financial details of any business. FMS will give you the tools you need to justify a reasonable valuation and offer to the seller.

FMS will work with you to analysis the business you would like to purchase. FMS will categorize and organize the business P&Ls into controllable and non-controllable costs and fixed and variable expenses. FMS will create a projected P&L with you and the seller if necessary, based on specific business variables. Each expense item will be assigned a value or a “goal” that will need to be held constant by you as the buyer in order to meet your determined net income at set revenues. The contribution margin is then calculated that would be used to project the impact of any needed reinvestment or change in revenues. A net present value (NPV) of business cash flows for any given period up to 30 years is created. The NPV prices future dollars as today's dollars. The NPV is an initial valuation of the business as determined by the discount rate. The discount rate factors in the required rate of return, risk, inflation expectations, and cost of capital. All of this is shown in any easy to read, easy to understand format. Multiple independent variables can be changed to run different financial scenarios where the effect on all dependent variables and net cash flow can be understood.

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Many times, a seller cannot provide adequate documentation to support their business valuation. FMS will work with the seller and your team including accountant, attorney, etc., or assist you in collecting the necessary documents to create a financial model and fair valuation of the business you would like to purchase. FMS will help you perform due diligence and verify the authenticity of the financial documentation that the seller provides to you.

You can incorporate the financial model into your business plan or provide it to any lender to lower lending risk and justify financing approvals at higher values or lower rates.

Financial Modeling Services is experienced in creating financial models for all types of business, including startups. FMS specializes in the financial modeling of franchises.