Not just numbers...

...peace of mind ©

Integrated business modeling

Integrated business model: Each company is unique, with its own drivers of value, obstacles and constraints. ECFO’s integrated business modeling provides a custom-built projection tool to map out the company’s future performance under different scenarios. Built on management’s own assumptions and supplemented by the ECFO team’s direct observations, the model measures and quantifies tradeoffs under different growth and investment decisions, giving powerful insight into the implications of various alternative corporate strategies going forward.

The model begins with an in-depth information-gathering effort, with staff interviews spanning all areas of the operation. Unlike most financial models, which are “ratio driven,” extrapolating existing financial statements out at selected growth rates, an ECFO business model focuses on modeling the operation itself. The integrated model represents all activity occurring in the company, from crucial core processes to smaller-scale support processes. Financial statements and valuation tools are then built on top as a final step. The result is a flexible and reliable planning tool that accurately represents the dynamics underlying the company.

The integrated business model is a tool with applications in a number of corporate strategy scenarios, including fundraising planning, budgeting, project evaluation, corporate structuring, pricing, merger and acquisition and work flow optimization.

Businesssimulation: A business simulation goes a step further than the integrated business model by adding the element of chance. A simulation runs the integrated model through a defined set of probabilities (variable demand forecasts, expanding and contracting lead times, currency and commodity price swings, etc.) to determine their net effect on the overall health of the business. The business simulation uses probabilities to estimate the overall riskiness of different strategic decisions and provides a wide range of tools for identifying and avoiding “per