Definition - What does Financial Model mean?
Divestopedia explains Financial Model
In addition to the monthly projected financial statements, a financial model will include:
- An input schedule- summarizes all assumptions used including a build-up of revenue based on the key revenue drivers and a detailed cost analysis. This is the main page where all assumptions can be changed and the financial projections with automatically be updated;
- Sources and uses - summarizes the sources and uses of capital that will be used in the transaction;
- Continuity schedule - summarizes the repayment of debt and equity; and
- Investment analysis - summarizes the expected return on the investment.
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