Start-Up Business 3 Statement Model with Returns Calculation

All Industries, Financial Model, General Excel Financial Models

10-year Financial Projections, 5-year Financial Projections, Accounting, Accounts Payable, Accounts Receivable, Amortization, Bad Debt, Bookkeeping, Cash Flow Analysis, Cash Flow Projections, DCF Model, Discount Rate, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Financing, Forecast, Forecasting, Income Statement, IRR (Internal Rate of Return), KPIs (Key Performance Indicators), LBO (Levered Buyout), NPV (Net Present Value), Pro-Forma, Profitability Analysis, Return on Invested Capital (ROIC), Startup Financial Models, Three Statement Model | Three Financial Statements, Users, Uses and Sources of Funds, Valuation

Video Overview:

This model can be used to analyze the financial return of a start-up business using a 3 statement model. The model tab includes all assumption inputs as well as the calculations for the sources and uses, returns, annual valuation, income statement, balance sheet, and statement of cash flows.

The model is dynamic for up to a 10-year valuation period for returns and allows for a variety of debt and equity assumptions, including the ability to buy back or issue debt/equity throughout the business hold period. The executive summary tab provides print-ready formatted reports of key metrics and indicators, which can be used with investors and lenders as a business plan supplement.

The model is neatly arranged into the following modules:

Executive Summary: This output tab provides the high-level reporting output for the analysis, including sources and uses, return metrics (IRR, yield, MoC), debt/equity balance, annual valuation, income statement summary, balance sheet summary, and statement of cash flow summary.

This tab provides a summary of the proforma indicative business performance based on the assumptions used in the analysis. This tab also includes visual exhibits to assist with presenting the business forecast and valuation.

Model:

This tab includes the model assumption inputs and has the output calculations of the three-statement model below the assumptions for easy and quick model navigation.
All inputs for the model are on this tab.
The yellow-filled cells with blue text are for user inputs – only type into the yellow fill with blue text cells.
The blue-filled cells with blue text are user drop-downs.
Please use the drop-downs to make your selection.
Column E in the assumption section provides a description of the assumption and calculation methodology to provide the user guidance for their inputs.

The tab is organized into the following assumptions groups:
– General Assumptions: This section includes entries for the start-up name, analysis date for version control, start-up date which will trigger the forecast period, model currency, and the valuation period.
– Financing Assumptions: This section includes entries for equity contribution/issuance/repayment, debt LTV, debt interest rate, and debt issuance/repayment.
– Income Statement Assumptions: This section includes entries to prepare the proforma income statement. The expense GL accounts can be customized in the assumption tab and will automatically update the accounts in the proforma statements. This section also includes the amortization and depreciation as well as the tax rate assumptions.
– Balance Sheet Assumptions: This section includes assumptions for the balance sheet accounts, such as accounts receivable, inventory, accounts payable, and capital expenditures.

The 3 statement model calculations are below the assumptions and arranged in the following fashion:
– Sources and Uses
– Returns
– Valuations
– Income Statement
– Balance Sheet
– Statement of Cash Flow
– Supporting Schedules

Data Validation: This tab contains the data validation being used in the “assumptions” tab.

This model is useful for assessing a start-up business venture and provides neatly formatted print-ready output for presentation to investors and lenders.

This model template comes as both in .pdf and .xlsx file types, which can be opened using MS Excel and any PDF File Viewer.

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