Email from Kenneth
Hi Colin, thanks very much for the call yesterday. I’m very interested in conducting your financial modelling for investment evaluation course – even more so after speaking to you.
As mentioned, to assist me in motivating the course to my company it would greatly help if you could describe:
- The different type of candidates you have trained (particularly those not from a financial background);
- How they coped with the course and;
- What value you think the course offered them.
I think the course will be extremely helpful in the work we do with the financial sector (i.e. advising PEs, DFIs and Investment Banks on environmental, social and governance opportunities, risks and liabilities) – I just need to help my manager to see the value.
Thanks so much and look forward to hearing from you.
Regards, Kenneth.
Colin’s Response
Hi Kenneth, we’ve been building complex financial models for our clients for over 25 years – and in this day and age – any significant project (be it mining, infrastructure, energy, housing) – which requires major funding – demands a comprehensive financial model to evaluate financial feasibility.
Simplistically, financial models help users (investors and management) to make informed decisions.
Please forgive my ignorance – I’m not really sure exactly what services your company provides – but if part of the due diligence process relates to financial feasibility and sustainability, then financial models can add significant value.
Bearing in mind that models are predictive tools, some of the most powerful attributes are “what if” analysis, sensitivity (risk assessment), and alternative scenarios.
Here’s our (high level) definition of the financial modelling process:
“Financial modelling is the assembly of all relevant components of a business case, in a logical and structured manner, into a predictive tool for the evaluation of financial performance”
I suppose the fact that financial modelling has gained such traction and international acceptance over the past decade, in a way speaks for itself – and the evolution of modelling standards such as the FAST standard and SMART modelling process – is indicative of the broadening interest it commands.
With regard to the profiles of attendees, they vary from investment bankers to private equity firms, DBSA, IDC, PIC, IFC, to molecular biologists, nuclear physicists, and consulting engineers.
I have even run in-house courses for the Innovation Fund.
So, if investments are being considered, and the transaction or projects are subject to normal business expectations of return on investment, financial models can be invaluable.
I hope this is helpful.
All my best, Colin.
