Care Center Financial Model

Description
Start Up Care Center Financial Model consists of a financial model in excel for the opening of a new care center.


The model generates:

1) Three financial statements (profit & loss, balance sheet and cash flow)

2) Valuation using free cash flows

3) Returns per investor based on hurdle rates

4) Various charts

5) Breakeven analysis

6) Margins, ratios, and feasibility metrics

7) Three scenarios to stress test the plan in the "Scenarios" tab

8) Executive Summary tab which aggregates the most important metrics of the model.


The model generates the three financial statements (profit & loss, balance sheet and cash flow), a valuation, returns per investor based on hurdle rates, various charts, a breakeven analysis and a series of margins, ratios, and feasibility metrics. Additionally, the user can set three scenarios to stress test the plan in the "Scenarios" tab. All the above is summarized in the "Executive Summary" tab which aggregates the most important metrics of the model.

So, a quick overview of the model, in the contents tab you can see the structure of the model and by clicking on any of the headlines to be redirected to the relevant worksheet.

On the timing tab you can feed the general information for the model such as: model name, responsible, timeline of the model and date and currency conventions.

Additionally, there is a description of the color coding of the model in the same tab. Inputs are always depicted with a yellow fill and blue letters, call up (that is direct links from other cells) are filled in light blue with blue letters while calculations are depicted with white fill and black characters.



There is also a color coding for the various tabs of the model. Yellow tabs are mostly assumptions tabs, grey tabs are calculations tabs, blue tabs are outputs tabs (that is effectively results or graphs) and finally light blue tabs are admin tabs (for example: the cover page, contents, and checks).

There are 2 tabs where the user input is needed: "Timing", "Inputs (Plan)", "Scenarios". The user needs to fill the yellow cells in each of these tabs, all the remaining tabs are calculated automatically.

In the Inputs (Plan), the user fills the number of new patients per month for the ramp up period and then per year, afterwards the maximum capacity for each category of patients, as well as the lost patients for the same periods. The user then sets the fees for each category of patient and the relevant price growth.

Secondly, the user needs to set the variable costs, labor costs (headcount per month and their salary costs), other costs, fixed costs (such as rent, utilities, insurance, professional services, stationary, consumables, third party fees). In the same tab the user inputs the investment needs for the care center such as the initial working capital, medical equipment, IT equipment, tables, furniture and tableware, refurbishments, as well as the depreciation in years of each of these assets. Then the user needs to fill the working capital (inventory, receivables, payables), financing (debt gearing, financing costs, repayment years). The financing options for the project include equity funding from investors and debt financing (amortizing, bullet, or interest only). Afterwards the user can set the taxation and valuation assumptions.

All the remaining tabs are automatically calculated from the assumptions that the user has set. The resulting tabs are the three financial statements such as the profit and loss, balance sheet and cash flow on a monthly and yearly basis, the valuation of the business and its feasibility metrics (such as Net Present Value, Internal Rate of Return and Cash on Cash multiple), various KPIs and ratios, Investor Returns (where the user can set the hurdle rates and distribution split between equity investors) and Break-Even Analysis (Break Even Sales, Break Even Volume and Margin of Safety), all the charts are in the "Graphs" tab (Business and Profit and Loss Charts, Balance Sheet Graphs, and Cash Flow and Valuation Charts). The user can also stress test his plan in the "Scenarios" tab and by selecting one of the three scenarios to see the impact on his plan. Finally, the most important financial and business metrics are aggregated in the Executive Summary tab.

Finally, the checks tab where the most critical checks are aggregated. Whenever you see an error message in any page, you should consult this page to see where the error is coming from.