Executives
Within both corporate and banking roles, financial models are critical to the valuation, budgeting, and transaction analysis and execution processes. A probabilistic approach to financial modeling, versus the more traditional, static approach, will enhance the tools and data from which to make better decisions. Benefits from using a probabilistic approach include:
• Shows probability associated with specific values vs. downside, base and upside cases typically
used to show output variability
• Integrates input assumptions and correlations between variables requiring a single financial model to highlight many different cases possible
• Significantly enhances understanding of primary variability drivers and represents unique tool to understand impact of different decisions
• Highlights output data in a probability function providing a much more rigorous and disciplined approach to the probability associated with desired outcomes
• Can be used for valuation, M&A, debt, equity, liability management and restructuring financial models