Entrepreneurial Finance: Strategy, Valuation, and Deal Structure
Chapter 7. Methods of Financial Forecasting: Integrated Financial Modeling
Learning Objectives
After reading this chapter you should be able to:
• Identify the elements of the cash flow cycle
• Explain how working capital policies are established and how they influence financial needs
• Identify and use publicly available data sources to provide an objective basis for the assumptions underlying the financial model
· Develop and prepare a pro forma analysis to build an integrated financial model of a venture
· Use simulation to introduce uncertainty into the financial model
· Identify the critical determinants of a firm’s financial needs