The course focuses on management control tools useful for the construction of business plans. In the first part, the course focuses on the reclassification models of financial statements, on indices and flows. In the second part, the course deals with the construction and analysis of the budget. This is a balance sheet drawn up by translating certain hypotheses of future management into economic and financial figures. The use of this tool allows you to recreate, as in a sort of laboratory, the operation of the company and to simulate the effects that different management policies are destined to produce in the future on the economic, financial and capital assets of the company. The logic of the budget has multiple fields of use. It applies, in fact:
- to companies already in operation, to guide future management programs;
- in project financing operations, which are increasingly numerous today, to judge the self-sustainability of the planned initiative;
- to companies in the process of setting up or starting a new business unit (start up), to identify the most appropriate management structures;
- to individual investment projects, to judge their feasibility and convenience.

Summary of the arguments.
Among the topics that will be dealt with in the budget analysis for the construction of the pro-forma, the following should be noted:
• the logic of reclassification of the Balance Sheet and the Income Statement;
• the logical scheme for the construction of the Cash Flow Statement;
• the budgeting of EBITDA and MON;
• the estimate of the commercial Net Working Capital (CCNc);
• the estimate of operational self-financing;
• the estimation of the Free Cash Flow (FCF);
• the estimate of the Net Invested Capital (CIN);
• the estimate of the Net Financial Position (NFP);
• the budgeting of the Financial Requirement.

Among the topics that will be dealt with in the context of the construction of the pro-forma and in its evaluation, the following should be noted:
• the general logic and phases of the construction of the pro-forma;
• the basic pro-forma model;
• the development of the basic model: current operational management, structural operational investments and the financial structure;
• the formulation of the assumptions: the forecast of sales, operating costs and net working capital, structural investments;
• the assessment of the assumptions;
• sensitivity analysis;
• the financial sustainability of the budget and its "bankability".

To prepare for the exam, students have access to a textbook and other teaching materials prepared by the teacher that will be posted on the Moodle platform during the lessons.

The textbook is:
F. Giunta-M. Pisani, Analisi di bilancio, APOGEO, Maggioli Editore, 2016.

Chapters of the book:
1. Fundamental analysis and intrinsic value of the company
2. The information base for fundamental analysis
3. Analysis of the competitive environment
4. Analysis of strategies
5. Verification of the accounting quality and the information collected
6. The management analysis model
10. Preparation of the Cash Flow Statement
16. The pro-forma financial statements: rationale, phases and necessary information
17. The pro-forma financial statements: hypotheses and calculation formulas
18. Evaluation of the pro-forma financial statements