# Build a Consolidated Forecast Model

This guide shows you how to build a consolidated forecast where multiple branches or entities roll up into a single set of financial statements and valuations.

## Before you start

You should already have:

* A working model for at least one entity or division, or
* Clear assumptions for each business unit you want to include.

It is helpful, but not required, to have historicals imported from PDF, Excel, Xero or QuickBooks.

## What you will build

You will create:

* A branch tree with one branch per entity or division.
* Variables and drivers in each branch.
* A consolidated parent branch that automatically rolls up results.
* Consolidated P\&L, Balance Sheet, Cashflow and Cash Waterfall.
* Optionally, a combined valuation for the group.

{% stepper %}
{% step %}

### Decide your consolidation structure

Common consolidation structures:

* **Multi division**\
  Root: Group\
  Child branches: Division A, Division B, Division C
* **Multi entity group**\
  Root: Group\
  Child branches: Entity A, Entity B, Entity C
* **Hybrid**\
  Root: Group\
  Entity A with child branches for divisions\
  Entity B with child branches for divisions

Sketch your ideal structure before building.
{% endstep %}

{% step %}

### Create branches for each entity or division

* In the branch panel, create a **Group** or **Consolidated** root if not already present.
* Under the root, create one branch per entity or division.
* If you need extra detail:
  * Add child branches for stores, regions or projects.

Example:

* Group
  * Entity A
  * Entity B
  * Shared Services
    {% endstep %}

{% step %}

### Add or import variables into each branch

For each branch:

* Populate **Revenue** variables:
  * Use imports (PDF, Excel, Xero, QuickBooks, ticker) where available.
  * Or create manual revenue variables with units and prices.
* Add **COGS** variables:
  * Link to units or use percentage of revenue.
* Add **Opex and staff** variables:
  * Model local cost structures by entity or division.
* Add **Assets and liabilities**:
  * Capex, loans, and any entity specific balances.

Keep naming consistent across entities, for example:

* `Revenue - Subscriptions`
* `COGS - Subscriptions`
* `Opex - Marketing`
* `Staff - Sales Team`
  {% endstep %}

{% step %}

### Configure tax and financing per entity

If entities have different tax or financing arrangements:

* For each entity branch:
  * Set tax rate and payment frequency where entity level tax is relevant.
* For group level financing:
  * Create loans and equity variables in the Group or Holding branch.
  * Optionally allocate interest or costs to entities via additional variables.
    {% endstep %}

{% step %}

### Check entity level statements

For each entity branch:

* Filter the P\&L, Balance Sheet and Cashflow to that branch.
* Confirm:
  * Revenue and costs line up with expectations.
  * Working capital behaviour (AR and AP) makes sense.
  * Local capex and debt behaviour is correct.

Fix any mapping or timing errors at this level first.
{% endstep %}

{% step %}

### Validate consolidated statements

Now review the **Group** level:

* Open the consolidated **P\&L**:
  * Check that group Revenue equals the sum of entity Revenues.
  * Check that group EBITDA equals the sum of entity EBITDA, plus any group adjustments.
* Review the **Balance Sheet**:
  * Ensure Assets = Liabilities + Equity at group level.
  * Confirm that AR, AP, loans and equity roll up correctly.
* Review the **Cashflow Statement** and **Cash Waterfall**:
  * Confirm that operating, investing and financing cashflows reflect all active branches.
  * Check the bridge from EBITDA to net cash via Change in Net Working Capital.
    {% endstep %}

{% step %}

### Add consolidation specific adjustments

Some consolidation adjustments are group level only:

* Group wide overheads or central teams.
* Intercompany eliminations (if you choose to model them).
* Group level tax or financing.

To model these:

* Create additional variables in the **Group** branch to represent overheads or funding.
* If you wish to model eliminations:
  * Create offsetting variables that remove intercompany transactions at group level.

Keep these adjustments clearly named and documented.
{% endstep %}

{% step %}

### Add group valuation

* Open valuation settings at group level.
* Set:
  * Group level WACC.
  * Equity discount rate.
  * Terminal multiple or growth rate.
* Review:
  * FCFF and FCFE series at group level.
  * Group NPV, IRR, Money Multiple and Payback.
    {% endstep %}
    {% endstepper %}

## Check your work

* Each entity or division has its own variables and statements.
* Group statements equal the sum of enabled branches plus group adjustments.
* Balance Sheet balances at entity and group levels.
* Cash Waterfall matches the Cashflow Statement.
* Valuation is being read at the group level, not an individual entity.

## Troubleshooting

<details>

<summary>Entity results look correct, group does not</summary>

Check that all relevant branches are enabled for consolidation.

</details>

<details>

<summary>Group Balance Sheet does not balance</summary>

Look for missing or mismatched opening balances, or unpaired asset and liability entries.

</details>

<details>

<summary>Double counting intercompany flows</summary>

Consider modelling eliminations explicitly in the group branch.

</details>

## Related guides

* [Group-Level Consolidated Reporting](/use-cases/hospitality-groups-multi-venue/group-level-consolidated-reporting.md)
* [How Forecast Logic Is Generated](/help/stock-ticker-fundamentals/how-forecast-logic-is-generated.md)
* [Equity](/help/financial-outputs-and-valuation/equity.md)
* [Formula Modal](/syntax/understanding-the-interface/formula-modal.md)


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