Corporate Finance models 1 comment

What is Corporate Finance?

Corporate Finance deals with the financial and funding activities of corporations. Usually a department within the organisation is dedicated to overseeing and managing these activities. Long-term and short-term financial planning is adopted in order to maximise shareholder value and implement strategy. Without solid financial strategies in place, it is impossible to achieve overall business strategies.

What are Finance Activities?

Many activities fall under the domain of corporate finance, making it a fundamental department within an organisation. For example:

• ->Forecasting where the business’ money will come from
• -> Knowing where the business’ money is located
• -> Helping the organisation’s managers to decide how they will spend their financial assets in ways that will ensure the biggest return
• ->Examine cash flow, profitability and expenses
• -> Examine how the organisation can free up capital, increase profit, and decrease expenses
• -> Usually the department managing corporate finance in an organisation will have to be consulted before another department makes a big spend to ensure that it is feasible
• -> Evaluating the best growth plan for the organisation

What do Corporate Finance Excel Models aim to do?

Spreadsheet language allows the financial modeler to reconstruct almost any cash flow or revenue stream.

A Corporate Financial model will aim to capture all the variables in a particular event. Spreadsheet (or Microsoft Excel) is usually the main tool used to create financial models. This is because they quantify the variables of the event and create formulas around them. As well as this, the language used in spreadsheet allows the financial modeler to reconstruct cash flows or revenue streams. The result is a mathematical depiction of the event for analyst usage. The analyst will use these models for:

• -> Business valuation
• -> Scenario preparation
• -> Capital calculations
• -> Resource allocation
• -> Forecast projections
• -> Trends

Where can I find some good Corporate Finance Excel Model Templates or Examples?

You can find quite a number of real life Corporate Finance Excel Models on the web, shared by professionals, professors and researchers. Here at Eloquens, we are working on building the biggest library of Corporate Finance Excel Models available - with the possibility to interact with the authors and other users. If you have a good one to share, don't hesitate to publish it online. More about this here: Publishing your Ready-To-Use Corporate Finance Excel Models Online

More about Corporate Finance here:

• ->What is Corporate Finance on Investopedia
• -> The Business Dictionary - The Definition of Corporate Finance
• -> ICAWE's Working definition of corporate finance, written by Shaun Beaney