Practice 02 / Business & investment research

Financial and Economic Modelling

A useful model connects operating assumptions to financial consequences and makes uncertainty visible. IDER develops financial and economic models for businesses, projects and public-sector decisions, using a structure that clients can interrogate and update. We translate demand, pricing, costs, investment and financing assumptions into cash flows, performance measures and scenarios, supporting decisions about capital allocation, funding, affordability and wider economic value.

The decision challenge

Spreadsheets can appear precise while concealing weak assumptions, inconsistent calculations or unexplained links. Decision-makers need models that show what drives results, how funding choices affect cash flow and whether conclusions hold under changing demand, costs, timing and other relevant conditions.

Questions we help you answer

  • Which operating and financing assumptions drive performance and cash requirements?
  • How do alternative investment, funding or policy scenarios compare?
  • What financial and wider economic effects follow from the proposed decision?

What the research covers

Integrated financial modelsRevenue forecastsCost projectionsCash-flow modelsProfit-and-loss projectionsBalance-sheet projectionsCapital budgetingFinancing scenariosProject-finance modelsEconomic cost-benefit analysisFiscal-impact modellingEmployment-impact modellingScenario and Monte Carlo analysis where appropriate

How we build the evidence

  • Driver-based modelling of revenue, expenditure, working capital and capital investment
  • Integrated financial-statement construction and cash-flow reconciliation
  • Discounted cash-flow and economic cost-benefit analysis with explicit assumptions
  • Sensitivity, scenario and probabilistic analysis where the evidence supports it

Decision-ready deliverables

01

Editable financial or economic model with clearly identified assumptions

02

Model guide explaining calculations, sources and update procedures

03

Scenario comparison and sensitivity analysis of key decision variables

04

Executive interpretation of returns, cash needs and economic implications

What this enables you to decide

Compare investment and funding options, understand liquidity pressures and identify the assumptions that deserve closer attention. The model supports an informed decision by showing how results change; its projections remain conditional on the underlying evidence and assumptions.

Quality and interpretation

We document units, periods, sources and calculation logic; apply reconciliation and reasonableness checks; and separate observed inputs from estimates. Sensitivity analysis, model limitations and review notes help users interpret outputs without treating forecasts as certainty.

Related research services

A complete view of the investment case.

01

Market

Demand, customers, pricing and competition

02

Technical

Capacity, operating assumptions and implementation

03

Financial

Cash flow, capital needs, return and debt service

04

Economic

Wider costs, benefits and resource use

05

ESG & inclusion

Stakeholders, resilience and distribution of effects

06

Risk

Sensitivity, downside scenarios and constraints

Investment-appraisal framework. Dimensions are analytical categories, not scores or observed project results. Scope and specialist technical inputs are agreed per assignment.
Evidence into action

Discuss a financial and economic modelling assignment.

Discuss the questions, methods, expertise, timeframe and deliverables your decision needs.