About Financial Forecasts

A financial forecast is a powerful analytical tool used by all Fortune 100 companies in some fashion or another for virtually all decisions.  A reasoned financial forecast provides insights into risk and return factors not otherwise determinable. 

It is our view that financial forecasts are very underutilized by small and mid-size business as well as private investors.

Regardless of whether the project in question is a corporate venture, a real estate transaction or any other personal investment, a financial forecast is what is required to "do the math" in financial terms.

Financial forecasts are typically calculated on a monthly basis for any number of periods up to 20 years.  Tax issues, financing issues and risk factors are of central concern in a professionally performed financial forecast.

When performing a forecast for a corporation, a full, GAAP-based, financial forecast which  present values after-tax cash flows is required to "value" the business or venture.    These types of calculations are performed constantly by Wall Street analysts, and are called "valuations".  A valuation on a corporate basis produces a full set of financial statements, and the critically important statement of cash flow.  Actuaries perform valuations from an insurance perspective.

The end product of a corporate valuation is a value for the business, division or venture.  A forecast based on sound financial practice is required because it is the only way to measure cash flow properly. 

A real estate appraiser performs a valuation of sorts when determining the value of any real estate.  However a real estate appraiser's approach to determining market value is typically based on a comparable sale(s) approach, rather than the more rigorous financial forecast approach. 

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To discuss your situation in detail, please contact us.  We would like to give you our thoughts on how to meet your objectives in today's competitive market environment.

Middle South Ventures, Inc.

2895 Hwy 190 - Suite 214

Mandeville, LA 70471

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