- Automotive Business
- Balance Sheet
- Bank Financial Models
- Black-Scholes -
- Cash Burn Rates
- Cash Flow
- Comparable Comps Analysis
- Corporate Finance
- Cost Analysis
- Debt Schedule
- Discounted Cash Flow (DCF)
- Economic Value Added
- Excel Add-Ins
- Financial Markets
- Financial Projections -
- Hedge Fund
- Healthcare Financials
- Hotel Financial Models
- Income Statement
- Industry Specific Financial Models
- Investment Banking
- Inventory Management
- IPO (Initial Public Offering)
- IT (Information Technology) Business
- Leveraged Buyout (LBO)
- Mergers & Acquisitions (M&A)
- ModelOff Samples
- Monte Carlo Simulation
- Mining Financials
- Net Present Value (NPV)
- Options Pricing & Valuation
- Personal Finance
- Private Equity
- Real Estate Finance
- Renewable Energy Financials
- Restaurant Finance
- Return On Investment (ROI)
- Retail Finance
- Shipping Financials
- Scenario Analysis
- Sensitivity Analysis
- Stock Valuation
- Three Statement Financial Models
- Valuation Models
- Venture Capital
- Weighted Average Cost Of Capital (WACC)
- Wealth Management
- Cohort Analysis
- Design Thinking Process
- E-Commerce Financial Models
- Growth Hacking
- Lean Startup
- Lifetime Value (LTV)
- Raising Capital
- Software-as-a-Service (SaaS)
- Startup Boards
- Startup Business Plans
- Startup Cap Tables
- Startup Financial Models
- Startup Investors
- Startup KPI Dashboards
- Startup Lifestyle
- Startup Pitch Decks
- Startup Studios
- Startup Valuation
- Legal & HR
Finance model templates
What is Finance?
Finance can be defined as the term describing two major intertwined activities:
- the management of money as an asset
- the process of finding necessary funds for projects
Funding is key for all major stakeholders in an economy: individuals, corporations and governments. This is what explains the classical division of the discipline into:
- Personal Finance
- Corporate Finance
- Public Finance
Major activities in Finance, for all of the three categories above include: investing in value-added projects, obtaining the cheapest credit possible, the allocation of funds to back up liabilities and making these operations happen (ie: banking).
More on finance on Investopedia here
Why is Finance key for organizations?
Successful Finance Management is one of the key pillars for a healthy organization. The discipline uses a number of financial instruments (eg: loans, investments, securities) to answer an organization’s financial needs. Good financial management and funding helps organizations fund the assets necessary for their growth (i.e: labor, machinery, equipment, services etc.). Keeping an eye on key financial indicators and using the right financial instruments, tools and strategies is at the heart of an organizations life, survival and expansion. Finance functions can either be in-house, outsourced, used on a temporary basis (Consulting) or, most often, a combination of the three.
How can you get a Finance job?
Landing a finance job isn’t easy, as having and using with success the right knowledge is a pre-requisite.
Possible paths to land a job in finance are:
- => Getting an MBA, Bachelors or Master Degree in Finance
- =>Statutory Courses validated by official authorities
- o Chartered Accountants
- o Cost & Management Accountants
- => Specialized Finance Courses
- o CFA (Chartered Financial Analyst)
- o CFP (Chartered Financial Planner)
- o Economics Courses
- o Statistics Courses
- o CAIA (Chartered Alternate Investment Analyst)
- o Financial Risk Manager
- o Financial Modeling and Investment Banking Programs (Offline or Online)
More on getting a Job in Finance on Quora here
How can I acquire the skills and tools used in Finance?
Most Finance professionals, on top of their knowledge, have a set of tools they use for their daily or exceptional operations. They either build them themselves from scratch based on their expertise and experience of a large or specific sector or they use ready-made tools provided by their firm, colleagues or online web-sites.
Eloquens is in this last category, as an intermediary between financial tool authors and financial tool users, with the objective of helping finance professionals building on each other’s work instead of having to reinvent the wheel every time. You will find below, for download and open discussion a number of excel financial models and methodologies by world-class academics, experts and professionals.
The Most Common Types of Financial Models
1. The Three Statement Financial Model
This is the simplest form of financial modeling and is comprised of three different kinds of financial statements: the income statement, balance sheet and cash flow statement, all of which use dynamic formulas within Excel. The key idea behind the Three Statement Financial Model is that all three will be interconnected, and the input assumptions can prompt changes within the entire model. A sound basis of core finance, accounting and Excel skills are fundamental to linking these statements together.
2. DCF (Discounted Cash Flow) Model
The DCF model takes the Three Statement Financial Model further in order to estimate a company’s value. This is done using the NPV (Net Present Value) of a business’ future cash flow.
Slight alterations are made to the Cash Flow Statement from the Three Statement Financial Model before the XNPV function in Excel is applied, discounting them back to the company’s present day WACC (Weighted Average Cost of Capital). Financial models of this kind are primarily used in capital markets and equity research.
3. M&A Models
These are more technical forms of financial models whose aim is to analyse the finances of both mergers and acquisitions, focussing on evaluating its pro forma accretion or dilution. Each of the companies is often represented within a single tab to fit with the idea that Company 1 + Company 2 = Merged company. This kind of model is commonly used in investment banking and corporate development with varying levels of complexity.
4. IPO (Initial Public Offering) Models
IPO models are often built by investment bankers and corporate development professionals before a business goes public in order to estimate its value. These models are based on assumptions of how much investors would be ready to pay for a given company. Within the model, the valuation also includes what is known as an “IPO discount” which is designed to make sure that stocks trade well on the secondary market.
5. LBO (Leveraged Buyout Model)
This is another form of advanced financial modeling which focusses on modeling complex debt schedules. These models are often some of the most difficult and detailed models to create with many intricate layers and circular references as well as the cash flow waterfalls. These models are again most common in private equity and investment banking.
6. Sum of the Parts Models
These models are created by combining numerous different DCF models. Once these have been added together, different elements of a business that may not have been suitable for DCF analysis are then added to the business’ value. As such, this model is a sum of the different elements of a business, its investments and liabilities in order to arrive at the Net Asset Value for the business.
7. Consolidation Models
These models are a combination of various business units within one single model. Each of these business units is typically represented within a single tab. These tabs are then culminated within a consolidation tab which acts as a sum of all the different business units. These models are often similar to the Sum of the Parts models.
8. Budget Model
These kinds of financial models are frequently used by professionals in FP&A (Financial Planning & Analysis) in order to establish a business’ budget for the next year or years. Much of the budget model is heavily based on the information within the business’ income statement and is typically designed to display monthly or quarterly figures.
9. Forecasting Model
Again, these models are often used in FP&A as a means of building forecast estimations that can then be used in comparison and conjunction with the budget model. Budget models and forecasting models are sometimes seen within the same workbook, but can also be completely separater from one another.
10. Option Pricing Model
These models are frequently found in two forms: binominal tree models and Black-Scholes models. They are a fairly uncomplicated calculators within Excel as they are based solely on mathematical models.
- A step by step Discounted Cash Flow Analysis Tutorial (DCF model)18,554 remove_red_eye
Sample Financial ModelTemplate for determining cost realities and financial projections for potential investors' demands.14,758 remove_red_eye
Startup Excel ModelA startup financial model that can be sent to a Venture Capital, Private Equity Firm or Hedge Fund.12,747 remove_red_eye
Discounted Cash Flow Model TemplateA fully customizable excel model to match your needs, and use as a starting point or as a full DCF tool for valuation.9,224 remove_red_eye
E-Commerce Financial Model for StartupsAn extremely detailed, methodical package for entrepreneurs on how to build a financial model for an e-commerce startup.9,412 remove_red_eyefreeby Matt Carroll
LBO model - Leveraged Buyout AnalysisA step by step LBO model tutorial. It is easy to use and we provide support if needed. Have fun modeling!9,468 remove_red_eye
Venture Capital Method (Single Round Financing)A full model enabling an entrepreneur to understand assumptions of both sides of the table in a single round financing7,409 remove_red_eye
Discounted Cash Flow (DCF) Analysis with IRR and NPVSeveral spreadsheets that can be used for the analysis of a real estate investment from various perspectives8,530 remove_red_eye
Startup Pro-forma Profit and Loss statement (P&L) TemplateMade to help you construct a high level operation plan for your startup.8,330 remove_red_eye
Cash Flow Waterfall ModelA cash flow model for Real Estate based on a waterfall structure5,792 remove_red_eye
Merger & LBO Model Valuation ExcelThis LBO model in excel analyzes the value of equity and the firm in a leveraged buyout operation.4,927 remove_red_eye
Rental Property Investment ModelA model for calculating returns on rental properties4,509 remove_red_eye
Startup Valuation VC Method + excel SpreadsheetExcel template made to understand how VCs value the money that will be used to invest in a startup5,107 remove_red_eye
Commercial Real Estate Financial ModelCompute a Commercial Real Estate Valuation and Financial Feasibility of your Investment Project - excel model3,487 remove_red_eyefreeby Will Ferrigno
Leveraged Buyout LBO ModelA fully customizable excel LBO model to assess the debt level your firm can take in a deal & expected investor returns3,202 remove_red_eye
Leveraged Buyout LBO Model TemplateA full Leveraged Buyout LBO model template for a project to understand its different components and work with your own.2,798 remove_red_eyefreeby John P. Burns
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