Assumption Building_Basics
Use the financial template to support various chosen assumptions, based on different scenarios for your business. Each model requires due diligence, with assumption verification and review
Key Areas of Coverage
Financial Model
Governance
Valuation
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High Level Description
Breakdown of various assumptions allows to document basis of quantification, while reviewing and tracking estimated versus actual, as time goes by. To be used as the basis to the long term forecast and other models
When to use Template
Use to better understand estimate of future cash flows, future revenues and costs for example. Assumptions influence future cash flows and ultimately your valuation
Why use Template
Use the financial template to support various chosen assumptions, based on different scenarios for your business. Each model requires due diligence, with assumption verification and review
Additional Information
A key assumption relates to the discount rate_ return investors require, and reflects time value of money, opportunity cost of capital, and riskiness of cash flows
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