Excel for finance book.

See-Through Modelling by Dominic Robertson

This book is for finance professionals, analysts and aspiring modellers.

To acquire the theory and practical skills to build and interpret Excel-based financial models.

Available at:

www.amazon.co.uk/see-through-modelling-book

www.harriman-house.com/see-through-modelling

What this book covers

This book aims to provide the reader with a solid theoretical and practical basis for becoming an advanced modeller in Microsoft Excel. Particular reference will be made to the project finance operating model, and the lessons learned from UK PFI will be drawn upon.

Topics covered by this book include:

• financial theory

• modelling theory

• excel theory and techniques

• a step-by-step practical guide to building a project finance operating model

• computer setup and efficient use

• keyboard skills

• macro-economic data collection and distribution

Who this book is for

This book is for finance professionals, analysts and aspiring modellers who are looking for a deeper understanding of the dynamics of their enterprise through financial modelling.

The benefits of adopting see-through modelling in your business are:

• greater strategic vision due to great flexibility of forecast

• lower risk of modelling errors due to standardised modelling

• decreased reliance on individual analysts due to increased ease of model interchange

• clear, detailed and holistic modelling function overview

This book is also for aspiring financial modellers in general, and UK PFI project finance modellers in particular. Let me explain.

UK PFI has conceived over 800 projects in the UK and has gone a long way towards helping with the evolution of the financial model in Excel. Although there are some fundamental differences between a financial model for a public or private corporation and a model for a project finance operating company, there are also very many similarities.

I initially took knowledge learned from outside of project finance and used it for UK PFI modelling. Subsequently, I have successfully adapted knowledge from my UK PFI models for use in business areas as diverse as regulated energy distribution, media finance funding, telecom spectrum auctions, large container ports, high speed rail, and assorted manufacturing.

Readers of this book should keep in mind that learning to build a UK PFI project finance model is an extremely good place to start to learn financial modelling. UK PFI is like the world in miniature with simplified operations and simplified finance but containing all the accounting and cash elements that are necessary for wider application.

How this book is structured

The book is divided into three main sections preceded by an introduction and followed by an appendix of useful information.

The introduction outlines:

• the modelling problem

• the possible solutions available

Part 1 covers the base theory for the professional modeller:

• modelling theory, from mind-set to structure and on to content

• finance theory, from reporting cycles to shareholder returns and banking cover ratios

• FAST theory for Excel coding, from principles to rules and building blocks

• Excel theory, from setup, through useful formulae, to automation and known issues

• computer theory, for ways to optimise the use of the computer

Part 2 is a practical guide to building a model. It includes:

• building a model in 59 steps

• modelling techniques in practice

• ways of maintaining the modelling investment

Part 3 is dedicated to further lessons that can be taken from PFI and applied to other industries

The appendices include:

• links and references

• dictionary of terminology, including abbreviations

• keyboard shortcuts

• excel functions

• business maps

• the tree analogy