Client : A UK-based fast-growing healthcare analytics company seeking to build a business plan financial model to raise growth capital through VC investors and do financial and KPI performance reporting on a regular basis.
The existing model had: Incorrect and complicated deferred revenue forecast for the existing contracts
- Manual process for renewal of recurring contracts
- Mismatch in intercompany transactions at the consolidated level
- Inaccurate short-term forecasts as they were derived using long-term assumptions
- No variance analysis, as the monthly plan data was overwritten on every actual update
- Complex and manual process to add new bolt-on acquisitions and combine them with the existing business
- Missing GAAP to IFRS conversion
- FAB delivered a robust and flexible monthly financial model with:,
- Workspace to dump invoices and accurately project the deferred revenue,
- Automated functionality to renew existing and new contracts with churn rate assumptions,
- Ability to pass consolidation journals and report them to the accountants,
- More appropriate short-term forecasting by linking it to the sales pipeline contracts from the CRM system,
- Seamless process to update monthly actuals from the accounting system through the Trial Balance data and automatically combine it with the business forecast data leaving the old forecast data for comparison,
- Workspace to add and combine multiple acquisitions with the main business by entering basic financial details,
- IFRS adjustments to report in GAAP and IFRS standards ,
- A highly effective and easy-to-use tool for business forecasting and reporting.
- The advantage of having a committed team that provides monthly updates on actuals, reviews forecast assumptions and prepares financial statements and KPI reports for management and investors.
- Support for modelling during upcoming fundraising rounds, business acquisitions, and planning exit for investors.
We have been using the FAB model for 3 years now and it has supported all of our forecasting needs for strategic reviews, multiple funding rounds and two acquisitions.
We adopted the FAB model because we knew that investors would demand robust forecasts with a strong audit trail, and in 3 years no investor has ever raised any issues with the level of detail or quality of data provided; many have complimented the sophistication in the model and process around it.
I would happily recommend the FAB model to other fast-growing businesses for internal planning and management, and external reporting.
Chief Finance Officer.