Business Advisory Services

Business Advisory Services

Financial Modeling

The purpose of a financial model is to evaluate the economic potential of developing a Project, the economic impact of variations in the factors impacting the profitability of the Project, and to determine acceptable tolerances for resource costs as information to support a company’s business.

  • The model is developed based on the company’s planned operations strategy, production and revenue forecasts, capital expenditure estimates, and operating expense forecasts based on assumptions for the following:
    • volume, quality, and price of product to be sold
    • capital costs and operating expenses for similar projects with assumed variances
  • The model reflects available current financial information at the time of preparation
  • A baseline economic model demonstrates the cash flow, rate of return, net present value, and payback of the Project
  • Sensitivity analysis of each key input is conducted to determine which input factors represent the greatest risk to the profitability of the Project
  • Recommendations are made for acceptable tolerances for production costs

Clients:

North Rim Business Advisory Services are available for all North Rim clients and are best suited for the following companies:

  • Early-stage companies who do not have a full-time CFO and require additional short-term assistance to document their ideas, conduct high-level economic analysis, and establish reporting procedures
  • Existing companies who are evaluating a transition (new business lines, mergers, acquisitions, joint ventures, etc.)

Services:

North Rim Business Advisory Services include, but are not exclusive to, the following:

  • Work with the resource company to prepare business plans based on the strategy set out by the Board of Directors
  • Evaluate and develop economic and financial models associated with carrying out the client’s business plan
  • Risk analysis of short-term and long-term strategic objectives
  • Assist management with the development of short-term and long-term budgets and target deliverables to meet strategic objectives
  • Assist with the preparation of internal management and governance reporting
  • Assist with the preparation and negotiation of key agreements with the client’s current and potential partners