We continue our series of helpful tips and add-ons with Pro Forma Funding module. The Module automates manipulation of capital structure for any forecast balance sheet date. An add-on Sources & Uses summary allows setting assumptions for retiring of any existing financial liabilities with proceeds from new equity or debt issue. If no debt is retired, all proceeds will accrue to cash position at the issue date.
We find this add-on helpful when a capital raising exercise is being planned but its date is not certain. Likewise, the Module helps to analyse various funding options without re-wiring the main model. Without the Module any changes to capital structure are manual, time consuming and are prone to errors. The Module is designed to address these issues: there is one single Pro Forma Date input; when the date is changed, the Module instantly runs changes through the Model.
You can download the Pro Forma Funding Module here free (requires registration). Alternatively, there is ‘Add-ons’ button at the top right of the user Account page. You can always browse FinRobot add-ons’ library as we will upload more in the nearest future. Download an add-on and follow the instructions in the file to import code into your Base Model.
How difficult is it to import the code? If you follow the instructions provided in the file, it should not take longer than 10-20 minutes of your time. No advance knowledge of Microsoft Excel is required. It is a simple copy-paste operation. Remember to keep a separate copy of your Model prior to changes to revert to if you make a mistake.
Enjoy!