Start Modeling the Financial Future of Your Business

Financial modeling creates a visual, mathematical representation of a business's economic performance.

It involves analyzing historical data and making projections via customized spreadsheets that pertain to future performance to provide more informed decision-making.

Financial modeling serves a wide variety of financial-based purposes, including business planning, forecasting, acquisitions, raising capital, selling and divesting assets, budgeting, accounting, valuation, and other strategic decision-making.

Essentially, it helps businesses assess the potential impact of different scenarios to make more enlightened financial choices about resource allocation.

Financial modeling can help you make decisions about all facets of your company’s finances, such as budgeting, pricing, investment, financing, risk management, etc.

These spreadsheets are unique to your company’s financial needs and goals, giving you more insights into the economic implications of various strategies and helping you identify opportunities for growth and optimization.

While financial modeling can't predict the future with certainty, it can provide valuable insights into potential outcomes based on different assumptions and scenarios.

Businesses can make more informed decisions to improve their financial performance by modeling various factors affecting profitability.

Your customized Decision Tool will be based on your assumptions and inputs regarding your business's primary and secondary drivers.

It is an electronic worksheet completely customized to your business and contains your business's significant financial aspects, components, and drivers.

You can utilize it to simulate different scenarios and analyze the potential impact on their financial performance, giving more visibility into revenue, expenses, and profitability based on user-defined assumptions.

Primary drivers are the key factors that have the most significant impact on a business's financial performance.

These may include sales volume, pricing, production costs, and market demand. Identifying and understanding primary drivers is essential for accurate financial modeling and decision-making.

Secondary drivers are factors that indirectly influence a business's financial performance. While they may not have as significant of an impact as primary drivers, they can still affect profitability and should be considered in financial modeling. Examples include changes in consumer behavior, economic conditions, and regulatory changes.

The initial exploratory conversation is free. Other consultations and time required to complete the Decision Tool are based on a sliding scale that reflects your business’ revenue and complexity.

Process length will vary depending on your business's complexities, scope, and scale. Generally speaking, it can take anywhere between one to eight weeks.

You will get an estimate of this during the Initial Exploratory Conversation and more guidance after the first paid consultation session.

No. SBFI does not consult on business strategy, nor do we validate business models. SBFI provides a process and Decision Tool that generates financial intelligence about your ideas, strategies, and business models.

A Quality of Earnings (QoE) Report evaluates how accurately a company’s reported earnings reflect its true, sustainable financial performance.

At SBFI, our QoE analyses dig beneath the surface of financial statements to separate recurring profits from one-time adjustments, owner-related expenses, or accounting anomalies.

For buyers and investors, a QoE report is an essential component of financial due diligence, helping verify the reliability of reported earnings, assess cash flow sustainability, and provide leverage during negotiations. In short, it gives you confidence that what you’re buying aligns with what’s being represented.

Financial modeling for acquisitions plays a crucial role in supporting due diligence and the Quality of Earnings process. Our team at SBFI builds dynamic models that link historical financial performance to future projections, helping identify risks, test assumptions, and assess valuation under various scenarios.

By combining financial modeling with a QoE analysis, buyers gain a comprehensive understanding of a company’s operational health and earning power. This integrated approach transforms static financials into actionable insights, so you can make acquisition decisions based on data, not assumptions.

A Quality of Earnings analysis is invaluable for anyone involved in a small business transaction, including:

• ETA buyers and investors seeking to validate a business before acquisition.
• Private equity firms or search funds conducting financial due diligence.
• Business owners preparing to sell who want to understand how buyers will view their earnings.

At SBFI, our QoE reports are tailored for the small business acquisition market, where timelines are tight, data is nuanced, and every number counts. Whether you’re buying your first company or adding to your portfolio, a QoE analysis ensures your decision is backed by clarity, precision, and insight!