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Valuation & Expansion Model

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Industry: Beauty and Personal Care

A leading UK-based skincare brand preparing for its next phase of growth and potential institutional fundraise.

Problems

  • The client was entering a fundraising cycle and required a credible financial plan to present to investors.
  • Existing financial information was static, spreadsheet-heavy, and not investor-ready, making it difficult to articulate a clear growth story.
  • No integrated view of:
    • SKU-level sales performance
    • Channel-wise growth (D2C, retail, online marketplaces, distributors)
    • Inventory build-up and working capital needs
    • Marketing-led growth investments and their payback
  • Limited visibility into cash runway, profitability timeline, and capital requirements.
  • The management team needed a model that could evolve beyond fundraising into a monthly decision-support tool.
  • No proper functionality to input Actual and Budget numbers.

Solution

We developed a 5-Year, Monthly FAB (Forecast Actual Budget) Financial Model designed:

  • Forecasting by SKU, product category, and sales channel.
  • Volume, pricing, and promotional assumptions fully driver-based
  • Production cycles, safety stock, and reorder assumptions
  • Working capital impact automatically reflected in cash flow
  • Marketing spend linked to revenue drivers and growth strategy
  • Embedded UK VAT treatment and compliance logic across revenue and costs
  • Built scenario to allow management and investors to test business cases
  • Three-statements projection integrated with cashflows
  • Provided the space to input the actual and budget data which will be beneficial to record the actual numbers YoY and budget set for a particular year. This will also be beneficial to do the variance analysis for the budgeted numbers with the forecasted numbers.

Client Benefits

  • A highly effective and easy-to-use tool for expansion, valuation, and number analysis.
  • Best in-class and professionally built financial model that is easy to handle and maintain.
  • The advantage of having a committed team that provides modelling support on an ongoing basis.

Client Testimonial

“The FAB model gave us, a clear line of sight from product-level growth to cash and profitability. It became an essential tool not just for our raise, but for running the business.”

Head of Finance

Problems