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Success Story - Complex Financial Modeling

Helping improve corporate financial models

Superior consulting services delivering successful accounting and finance solutions

Publicly traded companies have to be able to accurately predict the effects of certain transactions on their financial statements and the key ratios that are used by investors to track profitability. A publicly traded oil & gas refining and marketing company found itself in need of the right expertise to improve their corporate finance model and turned to Aventine Hill Partners for help.

Our Solution

We provided an experienced financial analysis consultant to make wide scale improvements to their existing model, which had become cumbersome and inaccurate. Our consultant first reviewed the inputs and desired outputs for the existing model. Data input in the model was not consistent and there was no standardized way for users to make and effectively track adjustments. Hard coding of adjustments into equations was causing significant accuracy issues.

Immediate improvements were made by standardizing and simplifying the inputs – saving existing staff a significant amount of time loading data into the model. Next, adjustments were standardized in a way that was intuitive for users and security features were added to prevent the future hard coding of adjustments.

After standardizing data input, the thousands of calculations made by the model were prioritized based on the most commonly used outputs. These outputs included a Balance Sheet, Income Statement, Cash Flow Statement, Free Cash Flow Statement, debt and equity analysis, and key ratio analysis for eleven different scenarios. Our consultant reworked the entire model, simplifying calculations and matching outputs to formal financial statement packages. The end result was a significantly more accurate model that could be managed in half the time previously required from the corporate reporting staff.

Results

Thanks to Aventine Hill Partners,this company was able to make significant improvements to a complex model, which resulted in them being able to accurately model several strategic transactions that they were evaluating. Learn more about our Financial Analysis, Planning, and Modeling capabilities.

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