Build a 5-Year Operating Model

Overview

Forecast revenue, costs, cash flow, and the three financial statements using explicit assumptions and reliable sources.

Agent teams in this guide

• Financial Analysis & ValuationFinancial statements, forecasts, models, comparables, DCF and football fields.
• Research & Market IntelligenceCompany, market, competitor and industry research, with every fact sourced.

Step by step

1. Gather the historicals

   Share the company and the filings to use, or let the research team find them.

   @BREXY Pull three years of historical financials for [company] from its annual reports.Copy

2. Set the assumptions

   Agree the revenue drivers, margins and capex assumptions, each written down and sourced.

   @BREXY Propose forecast assumptions for revenue growth, margins and capex, with the reasoning for each.Copy

3. Build the forecast

   The valuation team builds the income statement, balance sheet and cash flow forecast.

   @BREXY Build the 5-year three-statement forecast using the agreed assumptions.Copy

4. Review and stress-test

   Check the outputs and run a downside case before approving.

   @BREXY Run a downside case with 20% lower revenue growth and show the impact on cash flow.Copy

What you get

• Historical financials, normalised
• Documented assumptions with sources
• Linked three-statement forecast
• Base and downside cases

Tips

Be specific about scope: sector, geography, size, time period and the format you want back.

Ask BREXY to show its sources, and check them before you approve. Nothing moves forward until you do.