Each financial model is unique, depending on who creates it, the asset class, the purpose (brokerage, acquisition, development), the audience (buyer, seller, equity investor, lender), etc.

But there are several "best practices" that can be useful when applied to any model.

These are principles, not rules - ultimately every model is unique and should be adapted to the purpose of the analysis, the asset class, the risk profile, etc.

In this lesson, we describe the best practices listed below and include example worksheets.

While not a comprehensive list, if applied correctly, these items can provide a solid "backbone" to any model.

Best practices:

1. Consolidate inputs
2. Use colors
3. Be “presentation ready”
4. Build in sensitivity tables
5. Outputs are flexible (depending on audience)
6. Build in checks
7. Tracker – track the impact of scenarios
8. Source – screen shot source docs

Dive into each lesson to learn more!