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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

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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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