Human Resources Company – Dynamic 10 Year Financial Model

Description
Financial Model providing advanced financial planning & analysis for a Human Resources Company.
Suitable for either a startup or an operating company, the model includes assumptions and calculations of revenue from 4 different sources (Recruiting, Career Development Programs, HR Management and Payroll Services), Startup and Recurring Operating Expenses and Capital Expenditures, Direct & Indirect Payroll, Financing through Debt & Equity, Scenarios Analysis, Business Valuation and Exit Scenario in case of a potential sale of the business.
Outputs of the template include Yr 1 Monthly Budget, Budget vs Actual Variance Analysis, Annual Financial Statements (3 Statement Model), Direct Cash Flow, Business Valuation including Return Metrics (IRR, MOIC, NPV, etc.) and Sensitivity Analysis, and Investors Returns Waterfall.
A variety of KPIs and Financial Ratios analyzes business performance and the company’s results are presented through sophisticated charts & graphs and are summarized on a professional Executive Dashboard.
The model is dynamic and allows users to select the desired forecasted Years (1 to 10). Output Reports & Charts are dynamically updated based on the selected forecast period
The structure of the template follows Financial Modeling Best Practices principles and is fully customizable.


Model Structure


Inputs:
• General Business Info and Reporting Metrics
• Revenue Assumptions for 4 revenue sources (Recruiting, Career Development Programs, HR Management and Payroll Services)
• Direct and Indirect Payroll Calculations
• OpEx and CapEx Assumptions (Starting and Recurring)
• Forecast Scenarios
• Financing & Capital Structure – Uses & Sources of Cash analysis (Financing through Equity & Debt)
• Exit Year Scenario & Valuation Multiples


Model Outputs
• Monthly Operating Budget – Actual & Variance Analysis
• Annual Financial Statements (Dynamic 10-Year forecast using a 3 Statement Financial Model)
• Annual Direct Cash Flow
• Summary of various KPIs and Financial Ratios (Revenue & Cost Metrics, ROE, ROIC, Profit Margins, etc.)
• Business Performance Dashboard
• Business Valuation (incl. Terminal value, Unlevered & Levered Cash Flow, Return Metrics, Payback period, Breakeven point, Sensitivity Analysis)
• Investor Returns (4-tier IRR hurdle waterfall model to distribute proceeds between investors)
• Professional Executive Summary (can be used for investment decisions)


Detailed instructions on the use of the model are included in the Excel files.


Help & Support
Committed to high quality and customer satisfaction, all our templates follow best practice financial modeling principles and are thoughtfully and carefully designed, keeping the user’s needs and comfort in mind.
No matter if you have no experience or you are well versed in finance, accounting, and the use of Microsoft Excel, our professional financial models are the right tools to boost your business operations!
If you however experience any difficulty while using this template and you are not able to find the appropriate guidance in the provided instructions, please feel free to contact us for assistance.
If you need a template customized for your business requirements, please e-mail us and provide a brief explanation of your specific needs.