How does a retail company choose the best time, location, and scale for a new facility? How does a businessperson evaluate whether or not his idea is sound, or how does a venture capitalist decide whether to support that idea? How does an investment banker value a firm for a merger and acquisition transaction, or how does he determine how much money a company can raise and at what cost? All these and many more such important business predictions are done through Financial Modeling. Every time we have to make a financial decision, we project what the revenue and costs will likely be and then assess if it is a good choice based on those projections. Many institutions now offer courses in financial modeling since it is becoming increasingly important due to its success in boosting organizations. However, the best course is offered by IIM SKILLS. Let’s examine the IIM SKILLS Financial Modeling Course in great detail to discover what makes it stand out from the competition.
Before looking into the course, first, let us know about the basic concepts of Financial Modeling.
Financial Modeling: An Overview
Anyone who wishes to pursue a career in finance must have a solid understanding of financial modeling, which is practically a requirement. It is crucial for anyone looking to launch their firm, and sales and marketing experts can also benefit from it because it helps with project bidding, campaign payback analysis, and other tasks.
Analysis of current market trends, the company’s financial status, projections for the future, and the three essential financial statements that every organization needs to have—the cash flow statement, income statement, and balance sheet—form the basis for the process of developing financial models. Businesses have a financial department to monitor the business finances.
Financial Modeling: Future Prospects
Financial modeling has a huge prospect in the contemporary global context. Given the number of startups and small and medium firms that are growing in the Indian market, making sensible investment decisions and improving the performance of the company are crucial if you want to sustain it over the long run. Financial modeling is a tool that is used to achieve this. Financial modeling, which includes several complex features, takes into account past data and generates a business model that helps any corporate organization, no matter how big or little, make wise decisions with a good return on investment (ROI).
Financial modeling offers a wide range of job alternatives for people with this expertise. To make sound business decisions, each of these entities—banks, equity companies, corporations, and credit rating agencies—needs the knowledge of financial modeling experts.
In a financial modeling course, you acquire the most up-to-date material that is still relevant today, giving you a complete insight into the complex concepts of the financial business. The financial sector is vast and intricate. You must have a solid understanding of every component that makes up a company’s finance and accounting departments to accomplish this.
Applications of Financial Modeling
• Investment Banking
The primary tool for fundamental analysis and values is financial modeling. When doing M&A or fundraising deals, investment bankers utilize it to determine a valuation. It is utilized by equity analysts to appraise stocks and formulate buy/sell/hold recommendations.
• Project Finance
Bankers and credit analysts use financial models to forecast future revenues and costs and to assess a project’s viability. They can then decide whether to extend loans or what a project’s or company’s credit rating should be.
• Corporate Finance
Companies utilize financial modeling to evaluate their budgets and projects. Consequently, it serves as a component of finance plans for corporate ventures.
• Private Equity
Entrepreneurs use financial models to both plan their strategies and market them to possible investors. Running various simulations can frequently be a useful strategy for minimizing hazards.
If you are ambitious about pursuing a career in finance, Check out the list of top Financial Modeling Courses in India.
Advantages of Financial Modeling
1. Assessment of the Valuation of The company
Financial modeling aids in determining a company’s value, which facilitates making crucial choices like raising money and investing in stocks and other assets. You also receive a comprehensive report on your company’s assets and liabilities. A financial model is filled with a huge amount of useful data, including capital allocation, budgeting, forecasting, and determining the business’s total footprint.
The worth of an organization is often determined by deducting the total of its outstanding liabilities from the value of its assets.
Net Value = Assets – Liabilities.
2. To raise funds
You might need to raise funds for your company. Simply put, raising capital is the act of obtaining funds from various sources to support your company’s operations and projects. Banks, investors, and lenders are just a few examples of resources. After evaluating the risks involved in such an endeavor, financial modeling enables you to determine whether it is viable for you to raise these funds and how much you can obtain. Additionally, equity funding is an option.
The choice of mergers and acquisitions is heavily influenced by financial modeling. Before starting the acquisition process, it is crucial to conduct research and evaluate the financial standing of the company you intend to buy. Understanding their legal obligations, business processes, assets, brand value, team, and contribution to their industry is necessary for this. Having a good integration plan in place benefits from financial modeling as well.
4. Comparative analysis with rivals and peers
Financial modeling makes sure you have a clear understanding of how you compare to your peers and rivals in the market.
5. Reducing Risk
Financial modeling is useful in identifying company risks and their long-term effects. Additionally, they give you the responses and solutions to these problems. Risk in business can be caused by things like the product life cycle, manufacturing and processing costs, marketing expenses, capital investments, stock market fluctuations, production price changes, etc. You can assist in identifying the risks for a business by including sensitivity and scenario analysis in the financial modeling framework.
6. Periodic Evaluation Of Performance
When it comes to periodically evaluating the success of the firm, financial modeling is a great tool. Knowing whether your choices are succeeding or posing difficulties along the way is helpful. By doing this, you can periodically take exact actions to promote business activity expansion and efficiency.
7. Knowing the Business’s Strengths and Weaknesses
Financial modeling enables you to identify your company’s strengths and flaws. It identifies your deficiencies while highlighting your strengths, providing you specifics on how to address the weaknesses and make them work in your favor.
8. Selecting A Practical Funding Plan
You can develop a strong finance strategy using financial modeling that specifies your company’s financial needs over the course of a specific period. With the use of financial models, you may plan out your strategy for the next three to five months in detail. Financial modeling is useful for young start-ups when deciding whether to bootstrap their business or seek outside finance through loans, crowdsourcing, connecting with angel investors, asking for government loans and other loan programs, etc. Financial modeling shows you how to make financial decisions more quickly and what you can do to grow your organization without taking on too many risks.
9. Setting Project Priorities
Your projects can be prioritized and worked on by their ability to add value to the company based on the forecasts of your financial model.
10. Management Accounting
To strengthen and manage the business in the greatest way possible, financial modeling aids managers and superiors in a company in making crucial decisions based on the accounting information of the company.
Check out the list of top online financial modeling courses to study financial modeling from the comfort of your own home ambiance.
Skills Required to pursue Financial Modeling Course
Financial Reports, Financial Management, and Valuation Techniques
Excel, Writing, and Analytical Capability
Financial Statement Analysis, Excel Financial Statement Construction, Financial Model Construction
Financial market understanding, including market structure, mutual funds, debt markets, credit ratings, etc.
Eligibility Criteria –
The Financial Modeling course can be done by anyone who intends to build a flourishing career in finance. You are eligible if you are-
Career Prospects and Responsibilities
Financial Modeling opens up various new career prospects. Listed below are some such options with their detailed responsibilities –
1. Junior Research Associate
• Industry analysis and company profiling
• collecting appropriate data
• writing a report on research
• model construction from scratch
• Financial model testing
• researching international industries and companies
2. Merger & Acquisition Associate
• Corporate Finance, Mergers & Acquisitions – Client Advisory
• Undertaking financial research for businesses and sectors
• Preparing Project Feasibility report
• Asset Valuation project
• Competitor study
3. Junior Manager – Financial Planning & Analysis
• Developing a prediction model that can predict future performance.
• Assisting CFO with daily tasks and budget preparation
• Executing periodic financial planning
• Profitability Analysis
• Variance Analysis
4. Equity Research Associate
• Conducting thorough research
• Drafting research reports, and financial modeling in the form of projections
• Valuation &DCF Models
5. Junior Executive – Debt Syndication
• Information Memorandum and Financial Model
• Project Report
• Contacting and managing banks/financial institutions/NBFCs
• Drafting legal documents
6. Investment Banking Associate
• Building network and communication
• Leading financial models
• Analysing viable investment opportunities for clients
• Setting and executing short-term and long-term business goals
• Researching, analyzing upcoming projects and effective problem-solving skills
Now that we have a solid understanding of the relevance of the Financial Modeling course, let us now try to understand why the IIM SKILLS Financial Modeling Course is a highly-coveted one.
IIM SKILLS – A Brief Introduction
Mr. Vaibhav Kakkar founded IIM Skills in 2015, and since then it is a well-known organization that has quickly gained widespread acclaim. Mr. Kakkar first noticed the discrepancy between the supply and demand for talented and qualified individuals on a well-known educational blog. To close the gap, this institute offers top-notch online courses.
IIM Skills provides the best training to create avenues for outstanding and profitable professional prospects. By blending an equal balance of theoretical and practical training, the experts at IIM Skills transform the client experience into an unforgettable learning experience. The complex and enjoyable training methods are as easy to follow and fascinating as they can be. This makes it stand out as a desirable institution.
After more than five years of excellence, the institute has carved out a distinct niche for itself. Since it has trained 14,300+ professionals in 30 countries, it has established a solid reputation in the ed-tech industry.
Validated courses, hands-on training, international certification, and support with full-placement assistance are just a few of the many features that have drawn students and working professionals from all across the nation to IIM Skills.
In addition to this, major organizations and media sites like The Times of India, Prime Time, The Statesman, India Today, DNA, mid-day, and career360 have covered IIM Skills.
Courses at IIM SKILLS
IIM SKILLS initially began its journey as a content writing institute, and has rapidly expanded its reach and started offering the best training in several professional courses, including Technical Writing, Digital Marketing, and GST Certification Courses, to mention a few.
These courses are ideal for you if you wish to develop your skills and revitalize your career. These courses are the greatest for their quality and effectiveness since they have a thorough curriculum, practical training sessions, hands-on learning, doubt-clearing sessions, and assignments.
Now let’s concentrate on a thorough analysis of the IIM SKILLS financial modeling course.
IIM SKILLS Financial Modeling Course Review
This course provides a thorough, in-depth introduction to financial modeling. After extensive research and discussion, this curriculum was chosen by industry professionals with an in-depth understanding of the finance sector. The course is the best financial modeling course in India since it is specifically designed to assist students in securing market-level positions while maintaining financial industry norms.
This three-month course costs INR 39,900 + 18% GST and includes more than 50 hours of lectures, practical projects, a two-month internship, case studies, and placement assistance. IIM SKILLS, which is acknowledged by the MSME Government of India, grants the certification.
The IIM SKILLS Financial Modeling Course has the following six modules –
1. Excel – Basics and Advanced
2. Accounting Concepts and Financial Statements
3. Ratio Analysis
4. Financial Modeling – Basics
5. Financial modules and their types
6. Business Valuation
A very important aspect of Financial Modeling is to learn the use of Excel – from basics to advanced Excel. Gauging this requirement, the IIM SKILLS Financial Modeling Course includes a thorough practice of Excel – right from the beginner’s level to the advanced level. Candidates learn to use Excel to –
• Start preparing financial statements that project the future financial performance of the organization using previous data and assumptions.
• Learn important Excel formulas needed for financial analysis
• Learn framing different financial models required to bring about crucial changes and expansion
• Learn to use MS Excel to compute and automate financial ratios
• Become fluent in using important Data tools like filtering, sorting, data validations, and data importing.
• Learn to execute predictive financial models as solutions for practical business problems.
IIM SKILLS Financial Modeling course Objectives
• To give applicants the skills they need to succeed in the global standard financial markets
• To give candidates the knowledge and abilities needed to develop dynamic, well-structured, and organized financial models and to conduct financial analysis that results in wise decisions.
• To make participants confident enough to prepare financial models right from the very beginning
• To carry out business valuations effectively and provide authentic valuation reports.
Why IIM SKILLS Financial Modeling course is the best available course in the market?
We will clarify some additional facets of the course to answer this. The modules and skills related to the course have already been highlighted. Let’s now call attention to the facts. The Financial Modeling course offered by IIM SKILLS has a startling 87 percent success rate and helped launch more than 35k careers worldwide. Professionals that take the IIM SKILLS Financial Modeling course have seen an average income increase of 40%. All students adored and valued this course, by rating it with a generous 4.9 out of 5. These statistics alone are sufficient to confirm that the IIM SKILLS Financial Modeling course is the best one available.
The satisfaction of its students is IIM SKILLS’ top priority. So to eliminate any possibility of rejection, IM Skills provides 24/7 support and help with job placement. Lifelong access to counseling and career guidance ensures that you can seek their help whenever you need to make a critical professional decision.
Not to mention, you are entitled to a full refund under the money-back guarantee policy if you decide after the first session that the course is not worth the price. That displays the confidence and trust that experts have in their subject-matter expertise. What else are you waiting for? Run, sign up for a free demo session, and accordingly choose your career.
If you are serious about a career in finance and related fields, you can check out these other professional courses offered by IIM SKILLS
1. Why should I opt for the IIM SKILLS Financial Modeling course?
The IIM SKILLS Financial Modeling course has some unique features that make it the most popular among candidates. These are –
• Updated curriculum
• 24/7 access to the LMS for resources, including eBooks and session recordings, in small, flexible batches
• Career help and counseling
• Unattended backup classes
• LMS and course materials are accessible for life.
• Assistance with placement and interview prep
2. What is the current salary trend of a finance professional who has completed the IIM SKILLS Financial Modeling course?
The salary for financial modeling has increased over the last few years. A wide range of professions require individuals with an outstanding talent for financial analysis and derivations. Financial modeling is becoming a more lucrative career path for many prospective finance students and financial professionals working in many areas of the financial sector.
A financial modeling analyst’s annual salary in India begins at INR 2,55,835. Financial modeling experts earn an average yearly compensation of 22 lakhs, with most salaries falling between 8 lakhs and 50 lakhs.
3. Does the IIM SKILLS Financial Modeling course provide Paid or Unpaid Internships?
The 2-month Internship that the IIM SKILLS Financial Modeling course provides is unpaid. It is made to assist participants with a close, practical idea of real-life business operations.
Financial managers and market research analysts are two of the top five highest-paying positions in the future. IIM SKILLS is a leading institution that stays true to its aim of offering worthwhile, top-notch courses at reasonable costs. For many people, it has long been a great place to start, restart, or advance their careers. You can become financially knowledgeable by combining technical financial abilities with soft skills in an ideal way and become market-ready upon completion of the course.
By enrolling in this IIM SKILLS Financial Modeling course you will improve your skills and prepare for entering the corporate world by facing the obstacles of the actual world through case studies and assignments. The instructors, support staff, and mentors work hard to provide you with the finest learning environment. At this point, we’ll leave it up to you to make a sensible choice and find your way to success in this difficult but rewarding industry.