Herglotz Consulting GmbH - Financial Model Example 1Herglotz Consulting GmbH - Financial Model Example 2
Financial Models
Financial models are multilayer bottom-up models that incorporate several business plans and parameters into an integrated planning tool. By means of total integration such models simulate complex scenarios that are depending on parameters that can be set on different levels of the business chain. By simulation you can map different combinations of parameters on your business and display effects on profitability, interest coverage ratios and so on. Such models are for example used for fund structures or complex businesses with several separate entities.

On the left side you will find an example for a financial model from the real estate industry that integrates 9 different properties bottom up and models consolidated statements according to IFRS for a planning horizon of 7 years. Changes in interest rates and investors’ yield expectations were included and implemented into a sensitivity analysis.

We provide services regarding the implementation of planning instruments and we can cater to our individual needs, whether you need a simple cost accounting calculation or a multi-layered financial model that incorporates several business units.