/build-model

Build financial model (DCF, LBO, M&A, or operating model) with validated methodology.

Usage

/build-model [type] [options]

Arguments

Argument	Required	Description
type	Yes	Model type: dcf, lbo, merger, operating, comps

Options

Option	Description	Example
--purpose	Model purpose/decision	--purpose "acquisition evaluation"
--data	Historical data file	--data docs/financials/historical.xlsx
--scenarios	Number of scenarios	--scenarios 3
--output	Output format	--output "excel"
--sensitivity	Key sensitivity drivers	--sensitivity "wacc,growth"

Examples

# DCF valuation model
/build-model dcf --purpose "standalone valuation" --data docs/financials.xlsx

# LBO model
/build-model lbo --purpose "PE acquisition" --data docs/target-financials.xlsx

# M&A accretion/dilution
/build-model merger --purpose "strategic acquisition" --scenarios 3

# Three-statement operating model
/build-model operating --purpose "5-year projection" --data docs/historical.xlsx

# With specific sensitivity analysis
/build-model dcf --sensitivity "wacc,terminal-growth,revenue-growth"

Prerequisites

1. Historical financials: 3-5 years of financial data (recommended)
2. Model purpose: Clear decision the model supports
3. Key assumptions: WACC components, growth rates, multiples
4. Transaction terms (for LBO/M&A): Deal structure, financing

Model Types

Type	Description	Key Outputs
dcf	Discounted Cash Flow	Enterprise Value, Equity Value, implied multiple
lbo	Leveraged Buyout	IRR, MOIC, sources/uses, returns waterfall
merger	M&A / Merger Model	Accretion/dilution, synergies, pro forma
operating	Three-Statement Model	IS, BS, CF integrated projections
comps	Comparable Analysis	Trading multiples, implied valuation

Output

The command produces a complete financial model including:

• Model Summary with key outputs
• Assumptions Register with sources
• Model Structure documentation
• Key Outputs and metrics
• Sensitivity Analysis tables
• Scenario Analysis (if applicable)
• Validation Tests results

Related Commands

Command	Description
/analyze-financials	Financial analysis
/create-budget	Create budget

---

MANDATORY: Load Full Skill

This command MUST load the skill for complete workflow execution.

Use Skill tool: financial-modeling

The skill contains the complete 6-phase workflow with:

• Scoping requirements
• Architecture design principles
• Assumption documentation
• Build standards
• Validation tests
• Documentation requirements

Execution Context

Pass the following context to the skill:

Parameter	Value
type	$1 (first argument: dcf, lbo, merger, operating, comps)
--purpose	If provided, model purpose
--data	If provided, historical data file
--scenarios	If provided, number of scenarios
--sensitivity	If provided, sensitivity drivers

Step 1: ASK MODEL PARAMETERS (MANDATORY)

After loading skill and before building model, you MUST ask:

AskUserQuestion:
  questions:
    - question: "What decision does this model support?"
      header: "Model Purpose"
      freeform: true
    - question: "What WACC approach should be used?"
      header: "WACC"
      options:
        - label: "Calculate from components"
          description: "Build up WACC from risk-free, beta, ERP"
        - label: "Industry benchmark"
          description: "Use industry average (cite source)"
        - label: "Company-provided"
          description: "Use company's stated WACC"
    - question: "What terminal value methodology?"
      header: "Terminal Value"
      options:
        - label: "Gordon Growth"
          description: "Perpetuity growth model"
        - label: "Exit Multiple"
          description: "Apply multiple to terminal year"
        - label: "Both"
          description: "Calculate both for comparison"

Do NOT skip this. Model type alone does not define methodology.

Quick Reference

See skill financial-modeling for full details. Key rules:

• All inputs in input section - No hardcoded values
• WACC calculated from components - Not assumed
• Sensitivity analysis required - Key drivers tested
• Error checks implemented - Validation on all sections
• Model validated - All tests passing before delivery