Accelerate Prosperity invites CV/Firm Profiles, Financial quotations inclusive of all (Taxes, Travel & Accommodation) from firms and/or individuals for Trainings & Mentoring Program on:
FINANCIAL MODELLING FOR STARTUPS AND SMALL BUSINESSES
Accelerate Prosperity (AP) is a part of new global initiative of the AKDN in Central and South Asia, which follows guidance from the Aga Khan Foundation (AKF) Board to develop more formal structures to catalyze enterprises within AKDN’s main area development programs, where economic opportunities remain insufficient. Through patient capital and tailored business advisory to startups and businesses, AP complements broader employment-related programs of AKF and draws significantly on technical expertise from the Aga Khan Fund for Economic Development’s (AKFED) Industrial Promotion Services (IPS), and coordinates efforts with the AKDN’s financial institutions, the University of Central Asia and many other national partners.
AP’s approach combines financial and non-financial support, recognising that standalone business development services and traditional bank financing are inadequate to catalyse start-ups, grow small firms, and deliver job creation in fragile and emerging markets, particularly for marginalized groups in rural areas. The overall theory of change is that with improved business models, investment readiness along with tailored financing bundled with commercial and B2B linkages driven by the private sector, the supported businesses will be equipped to unlock private sector investments, sales and growth, leading to increased incomes and job creation.
PURPOSE OF CONSULTANCY
As a part of AP’s pre and post financing acceleration services to startups and existing businesses (small-sized), it aims to enable businesses develop and/or fine tune their financial models and forecast company’s financial performance into the future. A financial model is simply a tool to estimate company’s overall value/ worth. The forecast is typically based on the company’s historical performance and a sound business strategy and set of assumptions for future. The overall output of the financial model is used for decision making particularly for raising capital, mergers and acquisitions, expansion, launching of a new product/ service, sale of assets and divesting etc.
It is expected that participants will be able to do the following things after attending this course.
- Develop a comprehensive (yet concise) Financial Model of the business, primarily for the shareholders and potential investors
The purpose of this consultancy service is to design and deliver training and advisory on financial modelling for small businesses to founders/ owners and/or CFOs of select start-ups and existing small businesses.
- What is a financial model?
- Reflecting Nature of the Business
- Illustrating Market
- Analyzing Business’ Profitability
- Business Valuation
- Ascertain Investment Requirements
- What is the purpose of developing a financial model?
- Raising Capital/ Financing, both debt and equity, Acquisitions, Expanding the business or launching new products/ services, Sale of Assets/ divesting business units, Budgeting/ Forecasting, Company Valuation
- Types of Financial Models & Valuation
- Three Statement Model, Discounted Cash Flow Method (DCF), Merger Model, IPO Model, Leveraged Buyout Model, Sum of the Parts Model, Consolidation Model, Budget Model, Forecasting Model, Option Pricing Model
- Building a Financial Model
- Develop or Finalize a Business Model
- Finalizing Specifications of the FM: Scope, Input Variables, Key Assumptions, Intended Outputs
- Analyzing Historical Financials (Existing Business)
- Developing Key Historical Ratios and Metrics (Existing Business)
- Developing Projections: Profit & Loss Statement, Balance Sheet, Cash Flows, Key Ratio, Return Profile of the Business
- Undertaking Sensitivity & Integrity Analysis
- Undertaking External Validation
- Company Valuation (DCF Method)
- Ascertaining Investment Requirements
- Key Traits of a Good Financial Model: Well-structured & Ordered, Easy to Understand & Follow, Clearly Laid out Assumptions & Drivers, Accurate, Relevant
KEY LEARNING OUTCOMES
Upon completing this course, participants will be better able to:
- Name and understand key considerations when developing a financial model.
- Apply a structured process to develop a financial model.
- Coordinate with various departments/ functions of the business, shareholders and resources in the process of developing a financial model.
- Translate business model of the firm into sound numbers and projections of the company.
- Mini-lecture (20%), Exercise/ Practice (40%), Examples (15%), Mentoring (15%)
The course should use a case-study approach in order to engage participants actively in the learning process. Before each course, participants should be encouraged to share their understanding about the course topics and issues around it. During the course, the trainer acts as facilitator along with his team, using interactive learning methods to help participants to share their experiences and learn through participation in activities such as group discussions, case studies, and intense exercises/ practice sessions. The trainer is expected to deliver the course in a way that all participants are able to apply the knowledge gained, in applying/ executing comprehensive and high-quality financial modelling for small businesses at the end of the training.
- Training on financial modelling for Small Businesses Delivered;
- Intense Practice Exercises/ Sessions on Developing Financial Models Conducted;
- Exclusive Mentoring and Advisory on Financial Models conducted;
- A high quality financial model of the business developed;
- Relevant financial modelling forms and templates shared;
- Action Plans on Executing Financial Models developed;
By the end of the course, all businesses will engage in Action Planning using the tools given to them by the trainers. At the end of the training, all participants should set out a set of high-priority actions that are practical, realistic, and quick to generate positive impact within a pre-defined span of time.
- Startups: Businesses with less than 3 years of operations, both pre-revenue and post-revenue stages. Most of the entrepreneurs are doing business for the first time.
- Existing Small Businesses: Micro and small businesses with more than 3 years of operations, post-revenue stage. Most of these businesses are run informally and do not have documented processes and systems.
NATURE OF CONSULTANCY
- 3-4 full days of training (6-8 hours per day, including tea & lunch breaks)
- 1 for AP team
- 3 for proposed businesses
- Between 10-15th Nov 2018. Specific dates TBD.
KEY CAPACITIES REQUIRED
The required capacities include:
- 2-3 Trainers
- 2-3 Mentors (entrepreneurs or corporate Governance practitioners)
- 1-2 facilitators
We also propose having a local financial modelling professional from Gilgit-Baltistan (who may be currently based in Islamabad), preferably someone involved in developing financial models, feasibilities and investment analysis, in the team as well to provide local insights and examples for the course design and execution.
Profile of the Trainer(s)
- MBA (preferably in Finance), CFA chartered candidates will be preferred;
- At least 5-7 years of experience in an established business/ corporation in a senior role in financial modelling, developing financial feasibilities etc.;
- Demonstrated (at least 5-7 years) history of financial modelling training and advisory.
Profile of the Mentor(s)
- An entrepreneur with experience in setting up and growing a business, especially in challenging circumstances;
- An experience professional with significant experience in a corporation/ business in a senior role preferably in business plan and/or strategy development, project development etc..
The participants’ learning results is assessed through the improved understanding and execution (through developing quality financial models) of the trainees about key financial modelling concepts, understanding its utility and execution methods. An improved understanding of the concepts and execution methods are assessed through the following scale (through pre and post training assessments). An average score of 70+ is considered of acceptable quality. Pre and post training assessments will be done by the AP team on the key topics and the intended outcomes mentioned in this TOR.
- 30% of the total value of consultancy service will be given as mobilization advance;
- 50% on the delivery of the training and its outputs mentioned above;
20% of the total value of consultancy will ONLY be given as the final payment if the average evaluation score is above 70. It is the exclusive responsibility of the trainer and his/ her team to achieve this score.
The interested individuals/companies can submit the soft copies of the detailed Profiles/CV’s of firms/Individuals along with financial quotations at the below email:
For any Questions/queries: firstname.lastname@example.org
The deadline for submitting quotations is WEDNESDAY – 17 October 2018, 11:59 PM
Accelerate Prosperity reserves the right to close the bid before the deadline as soon as it finds the suitable candidate and the minimum competition is ensured.