Consultancy / Agency - 5 Year Financial Model in Excel

Description
Recently updated to include a 3-statement model (fully integrated) and a cap table as well as some improved capex logic.

This model is ideal for a law firm, CPA firm, or any kind of consultancy business that has multiple people billing out work to clients for an hourly rate and a portion of that rate going back to the firm.

The user will have dynamic assumptions for adding new hires, attrition, and quota attainment over time based on how many months the new hires have been active. The quota attainment is based on a defined amount of hours per month the hired professional is expected to bill out.

Some of the more interesting logic here is the ability to account for new hire growth and attrition at the same time, on top of showing the efficiency increase of new hires as they get closer to 100% of their quota over however months you want to define that it takes to reach.

For flexibility, there are 3 slots that define each professional hire. The main difference between them include the average hourly billings, average billing time expected per month, and the percentage of earnings retained by the firm. To make it simple, the default is 'low/mid/high' but they can be named and defined however you like.

A percentage is defined for how many of the new hires that come in each month end up in each of the three categories.

To allow for attrition, the user can define the average amount of years a given professional of the given category is expected to stay active for.

Beyond the above assumptions, the rest of the template allows the user to dynamically define running and variable costs and see a monthly and annual detail of all revenue and expense items. This all gets rolled up into an executive summary.

There are spaces to account for funding from debt by a traditional bank and by equity from investors as well as the owners/founders. If one of these don't apply, the user can simply zero out the field.

The main use of this template is to plan out the growth or continued growth of a multi-person firm over time. The logic makes it easy to maximize efficiencies and margins as well as plan out key metrics that will result in success.

There is an assumption for an exit month, which can be any month in the 5-year period. Upon that exit month, the annualized EBITDA value from that month is multiplied by a defined multiple in order to derive the future sale of this business. There are options for no sale as well.

On the distributions tab, there is a DCF analysis for the project, investor, and owner equity. This also shows the IRR for each.

This template is also included in three bundles:
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic
- SaaS / Subscription Models: https://www.eloquens.com/tool/wmyQI0eE/finance/venture-capital/the-complete-venture-capital-bundle
- Industry-Specific: https://www.eloquens.com/tool/lrNGt2jL/strategy/business-plans/business-sector-bundle-35-bottom-up-financial-models