Business modeling services

Supporting companies with financial planning, analysis, and modeling challenges including model consultancy and review services

Matthew Jones

Matthew Jones

Principal, Valuation & Business Modeling Services, KPMG US

+1 612-305-5000

Nausheer Allibhoy

Nausheer Allibhoy

Managing Director, Tax Economic & Valuation Services, KPMG US

+1 818-477-4350

With the growth in the complexity of the business environment, companies increasingly need to model and quantitatively analyze their operations to help identify potential performance drivers, evaluate opportunities and risks, and make better informed financial and strategic decisions. These analyses may relate to forecasting revenues, developing three-statement financial models, creating product funnels, analyzing business segment profitability, evaluating capital investment options, or assessing the potential implications of various operational decisions. Addressing these matters often involves quantitative techniques such as sensitivity, simulation, and scenario analyses; advanced econometric methods; or transaction modeling.

We have extensive consulting and industry experience in performing in-depth operational and financial analyses, creating models, and developing financial projections that can benefit clients in various situations. We provide complementary and scalable support to corporate development, FP&A, finance, and tax teams by drawing on our diverse skill set. Our professionals hold advanced degrees, such as MBA and MS in finance, as well as relevant professional designations, including CFA, FP&A, CPA, CFM, and CMA.

Our Business Modeling Services professionals can advise you on a wide range of business issues, including, but not limited to:

  • Three-statement models and cash flow forecasting
  • Options analysis modeling
  • Deal models for mergers and acquisitions, carve-outs, divestitures, initial public offerings, and other transactions
  • Evaluating major investments or capital expenditure projects
  • Equity story
  • Budgeting and forecasting
  • Return on investment and cost of capital calculations
  • Demand forecasting and consumer behavior modeling
  • Credit analysis
  • Business and asset valuations
  • Customer attrition analyses
  • Distribution and waterfall calculations
  • Working capital and inventory management models.

In addition, we can assist in the development, testing, and documentation of prospective financial information (PFI) to support transactions, financial reporting, or general budgeting and long-range planning. We employ a multifaceted approach that provides organizations with the requisite PFI detail to help our clients meet the requirements of their investors, regulators, and auditors, including the following:

  • Provide an independent, unbiased assessment of management’s forecast
  • Highlight historical and projected trends, as well as anomalies, in forecasts
  • Assess historical forecasting accuracy and identify potential opportunities for improvement 
  • Leverage company, industry, and macroeconomic data to help improve forecasting accuracy
  • Evaluate the forecast risk embedded in PFI and quantify its potential impact on discount rates.

Alternative Framework to Quantifying Transaction Value
How do CFOs know that they are making the right financial decision when acquiring another company? When the strategy aligns, the culture is a fit, and both sides are excited, does the price matter?