Transactional financial models are the mathematical models created to forecast the future earnings of the business either to help inform investors about how management determined their own forecasts or to help the vendor to reach their own assessment of value.
Transactional financial models are the comprehensive models that allow your company to predict its future financial performance based on a series of underlying assumptions. These models, along with their underlying assumptions, can be presented to potential investors as part of the due diligence materials provided or can be used by you and your advisers solely as an internal tool to help determine the likely value. A number of different types of models exist including the following popular options:
Transactional financial models enable your company to:
Transactional financial models are important for an event tomorrow, as they help: