Financial Modelling Handbook

It doesn't matter how you choose to capitalise words in labels; what matters is having a consistent approach and sticking to it.

Inconsistent labelling impedes model clarity. In a big model, it can be easy to lose track of what we have called things and for duplicates to creep in.

Excess "used range" in Excel can cause the file size to be larger than necessary. This guide will show you how to check and correct this.

Sometimes the models we build in Excel can be large and complex. Much of this will be necessary and outside your control. There, however, are a few causes of unnecessary file size bloat that you can and should manage.

Now that you have finished building your model, it's time to undertake some final checks. This is a critical step before releasing a model. Omitting this step can be costly.

Throughout the model build process, we have set up our model to react in a way that pre-supposed we are before the transaction date. If we change the tariff and resolve the model, we’ll get a different IRR and debt amount. We are sculpting the ratios to hit a

With our early share capital redemption structure in place, we can now test our hypothesis about refinancing. The reference file for this bonus chapter is available in the file pack you'll receive when you purchase the handbook. See file 4.61 FMH early BEG 01a. Running our 10

Extracting trapped cash from the business

Always negotiate off the model

Once we’ve adjusted the senior debt calculations to facilitate early repayment, building the rest of the refinancing logic involves copying existing calculations we created for senior debt. We’ll need the following elements: * Refinancing facility sizing/drawdown * Senior debt repayment * Refinancing facility interest * Refinancing facility repayment * Refinancing facility ratios