Financial Modeling: Examining Alternatives In Detail
Financial modeling is the strategic centerpiece of The Rainier Group’s consulting processes. Our work with a client begins with understanding their situation in detail and what he or she wants to achieve—family, business, financial and other objectives. We use financial modeling to create side-by-side comparisons of how different choices will affect our client’s situation.
Businesses have used financial modeling for years to help their executives make important decisions. We developed a proprietary modeling system which reflects our more than 15 years’ experience with high net-worth individuals and business owners. Many ‘off the shelf’ software programs can perform modeling. We developed our system because others failed to address the complexity of the high net-worth business owner’s unique situation.
We create models that detail cash flow, assets, expenses and net-worth. We then project those values and their relationships on a year-by-year basis over a defined time horizon. We take into account predictable milestones, such as retirement of a debt, or a planned sale of property. By changing variables in the model that correspond to strategic alternatives, we create side-by-side comparisons of different courses of action—and their outcomes.
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