What are some examples of financial models and what are they used for?
There are several different types of financial models used by professionals to help them make the best business decisions. Financial models help professionals make important business decisions about raising capital, forecasting business changes and requirements, or what it will take to grow a business. Some examples of these useful financial models are the discounted cash flow (DCF), a valuation method used to determine the worth of investing in a business; leveraged buyout (LBO), which examines the impact of funding an acquisition with debt; and mergers and acquisitions (M&A), a method that analyzes the result of acquiring or merging with another company. These are just three of the models both new and seasoned financial professionals should expect to use in their careers.