Investment Holding Company 3 Statement Financial Projection Model (Excel XLSX)

An Investment Holding Company 3 Statement Financial Projection Model is vital for holding companies. It forecasts income, expenses, and cash flows, aiding strategic planning, investment decisions, and resource allocation. This model supports decision-making related to portfolio diversification, asset acquisitions, and financial structuring. Accurate projections empower holding companies to adapt to market dynamics, secure funding, and ensure sustained profitability. It enhances financial stability, attracts investors, and supports long-term growth by aligning financial strategies with the dynamic investment landscape. This model is indispensable for both established holding companies and startups, ensuring their financial viability, competitiveness, and effective management of diverse investment portfolios.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of 5-year or 8-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing investment company holding investments in up to 8 portfolio companies and generating investment return included dividend income realised and unrealised fair value gains and losses and transaction fees.

The model also allows the user to model investments in other financial instruments (money market, bonds, equities, alternatives etc), other ancillary income, staff costs, operating expenses, fixed assets and borrowings making it a versatile and comprehensive model for any holding company business looking to project investment return, cash flows and key ratios including IRR by portfolio company.

The model follows good practice financial modelling principles and includes instructions, line-item explanations, checks and input validations and incorporates a discounted cash flow valuation calculation using the projected cash flows.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across up to 5 or 8 years and summarised on an annual basis.
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
List of key ratios including average investment return, average profit margins, average return on assets and equity and average debt to equity ratio;
Bar charts summarising income statement and Balance Sheet projections;
Table presenting investment return by investment holding and IRR (if applicable)
Charts presenting split of investment holding by portfolio company, cash and financial investment balance by month, cumulative investment return by month
•  Discounted cash flow valuation using the projected cash flow output.

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and month;
•  Naming for portfolio companies, other income, staff costs, other expenses, financial investments, fixed assets and borrowings.
•  Sales tax applicability for revenue and cost categories;

Actuals Inputs:
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);

Projection Inputs:
•  Portfolio Company Investment Return
Portfolio company valuation;
Investment additions;
Investment exit date;
Transaction cost %;
Dividends received.
•  Financial Investment Assumptions
Investment Return per Annum;
Target Cash Balances;
Investment Allocation percentages;
•  Other Income
Volume and Rate / revenue per unit;
•  Other cost inputs including
Staff costs;
Other operating costs;
•  Sales and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount or percentage of retained earnings and frequency;
•  Fixed Assets including addition amounts and useful life;
•  Borrowings including addition/redemption amounts and interest rate;
•  Share Capital additions.