Financial Projections

Financial projections are forward-looking financial estimates based on hypothetical scenarios, used to evaluate the financial viability of proposed business strategies, product launches, or capital investment decisions. Projections typically include pro forma income statements, cash flow statements, and balance sheets for future periods.

These are essential tools for attracting investors, securing bank loans, or planning mergers and acquisitions. Financial projections consider variable assumptions such as market growth rates, pricing strategies, and cost structures, offering best-case, base-case, and worst-case financial outlooks.