I am working as financial analyst in IT company and its been a year working there , just wanted to ask about the CFI FMVA certification is it worth it to add value and skills or not ?
Hi, I have a doubt please (important to me) I have seen many times that, in a "Financial Modeling" (usually used for valuation, M&A, Strategic Planning, and similars) there are NOT calculated things as costs of the products, raw materials, direct and indirect materials, direct and indirect labor, planned level of production, etc., all in a depth "level of detail" as, for example, in a "Normal" Budgeting. Am I right? Or not? I mean, it is, or not necessary to "includes" in a "Financial Modeling" the level of detail and calculations like costs, production, etc? And why or why not? What is the difference between a a "Financial Modeling" and a "Normal" Budget process? Are the times? (1, 2, 3, N years) What are used for? What more? If I do a Business Plan, do I need a “normal” and detailed budget, or a a Financial Modeling? and for a Strategic Planning? Because both looks forward to the future, and both finish in the three statements (Balance, P&L and Cash Flow), I'm some confused. Thank you in advance for your advice!
There are a lot of questions here, but here are a few comments: - A financial model is really a generic term for any type of data used for almost any financial purpose (you could have a Capex financial model, an M&A financial model, a pricing financial model, etc) - Companies can do their annual budgeting process at many different levels of granularity... some will get extremely granular, some do it at a much higher level - Similarly for an M&A deal ... the level at which you model will depend on the level of detail you get from the party who is selling
@@CorporateFinanceAcademy Very interesting answer, thanks a lot, all the 3 bullets have clarify my doubts 🤗, but mainly the third one. So it means, I undersand that, "also" in an M&A deal, the level of granularity can be also extremely granular, "depending" on the party who is selling. Have I understood well? And the last question please, you've said that the level of detail depends on the party who is selling; but, it not depends on the party who is buying? I mean, is not the party who is buying, the one that "will request" more details in order to be sure that the value of the company is real and correct? (thinking also in the due diligence or things like that) Or I'm wrong? Thanks a lot again!
This is really helpful. Thank you so much for sharing!!
A lot of this is great advice for any kind of interview
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Great content , Is there any chat group to discuss the future topics that will be shared on youtube ?
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Nobody asks for weakness and strength questions anymore.
I am working as financial analyst in IT company and its been a year working there , just wanted to ask about the CFI FMVA certification is it worth it to add value and skills or not ?
It may help you develop some skills, but employers don’t really care if you have it or not.
Hi,
I have a doubt please (important to me)
I have seen many times that, in a "Financial Modeling" (usually used for valuation, M&A, Strategic Planning, and similars) there are NOT calculated things as costs of the products, raw materials, direct and indirect materials, direct and indirect labor, planned level of production, etc., all in a depth "level of detail" as, for example, in a "Normal" Budgeting.
Am I right? Or not?
I mean, it is, or not necessary to "includes" in a "Financial Modeling" the level of detail and calculations like costs, production, etc? And why or why not?
What is the difference between a a "Financial Modeling" and a "Normal" Budget process? Are the times? (1, 2, 3, N years) What are used for? What more?
If I do a Business Plan, do I need a “normal” and detailed budget, or a a Financial Modeling? and for a Strategic Planning?
Because both looks forward to the future, and both finish in the three statements (Balance, P&L and Cash Flow), I'm some confused.
Thank you in advance for your advice!
There are a lot of questions here, but here are a few comments:
- A financial model is really a generic term for any type of data used for almost any financial purpose (you could have a Capex financial model, an M&A financial model, a pricing financial model, etc)
- Companies can do their annual budgeting process at many different levels of granularity... some will get extremely granular, some do it at a much higher level
- Similarly for an M&A deal ... the level at which you model will depend on the level of detail you get from the party who is selling
@@CorporateFinanceAcademy Very interesting answer, thanks a lot, all the 3 bullets have clarify my doubts 🤗, but mainly the third one. So it means, I undersand that, "also" in an M&A deal, the level of granularity can be also extremely granular, "depending" on the party who is selling. Have I understood well?
And the last question please, you've said that the level of detail depends on the party who is selling; but, it not depends on the party who is buying? I mean, is not the party who is buying, the one that "will request" more details in order to be sure that the value of the company is real and correct? (thinking also in the due diligence or things like that) Or I'm wrong?
Thanks a lot again!
😁 "Promosm"
This advice is generic and not helpful.
Sorry you feel that way. What would be more helpful?