Financial Model Build

Our bespoke financial models can be built with many uses and objectives in mind. We can capture any level of segmental reporting required, for example geography, branch, SBU, SKU, etc. Our models also include intuitive and easy to use dashboards to assist with ongoing KPI management and reporting to appropriate stakeholders.

These models are designed to help understand the impact of various aspects of a business’ supply chain. This may include:

• Stock availability and lead times
• Considerations for utilising suppliers in different regions, such as taxes, delivery charges and timeframes
• Satisfying minimum order quantities and future demand whilst minimising holding costs
• Analysis of how different supplier mixes can impact performance.

Our portfolio models enable users and stakeholders to better understand the impact that a number of contributory factors can have on the portfolio value. This can include the impact of foreign currency movements, haircuts on target IRR, varied holding periods and other macroeconomic factors. The outputs of the model clearly outline the return expected under different scenarios, considering both ongoing returns and expected returns on divestment.

Our options appraisal models are designed to help decision makers evaluate the pros and cons of a range of options and assess the impact each has on future performance, profitability and cash conversion.

We design these models to help understand the resilience of a business against a range of sensitivities and one-off shocks. This can include:

• Sector specific changes, such as price shifts in the market as a whole
• Business focussed impacts, such as the loss of a key customer
• Macro-economic, including inflation and interest rate pressure.

Our custom-built models are created specifically for your business, incorporating your underlying drivers. We create our transaction models to have the ability to serve a dual purpose – both for immediate transaction needs and providing long-term value as an ongoing management tool, beyond a transaction. Working with us, you will benefit from:

• A bespoke design for your operations and business fundamentals
• Detailed scoping and design to capture the appropriate level of granularity
• User friendly focus with logical design and structure
• Management account alignment for straightforward updating of results
• Traceability and use of simple formula, enabling checks and diligence
• Key checks giving confidence to model integrity and outputs
• Variance analysis of actual performance against budget
• Relevant KPI and financial analysis
• Application of complex accounting treatments
• Working capital modelling, relevant to your business
• Flexible and easy to use drivers, allowing potential investors to flex scenarios with ease.

Our transaction models can be bolted on to one of our operational models or your existing operational model to help you manage any transaction. This is capable of incorporating:

• Returns analysis for existing management and incoming investors
• Dashboard presentation enabling quick changes to deal structure as it progresses
• Key sensitivities applied to underlying operations
• Meaningful scenario analysis
• Calculation of bank covenants, assisting debt limits and negotiations
• User friendly dashboards and charts for use in board presentations.

Similar to the deal overlay, our debt overlay models can be bolted on one of our operational models or your existing operational model to help you manage the raising of new finance or a refinance on existing debt. This can feature:

• Scenarios to enable quick changes to debt structure as discussions progress
• Evaluate the impact of refinancing
• Bank covenants calculated assisting debt limits and negotiations
• Ability to demonstrate ongoing compliance with banking covenants
• User friendly dashboards and charts for use in board presentations.

Our models have the flexibility to incorporate a wide range of scenarios and sensitivities. Scenario analysis can be integrated into either an operational model or management tool, as well as a transaction-only model.

We create summary dashboards of key outputs from the various scenarios for easy comparison.

Our team applies debt sculpting calculations to calculate the amount of debt service that the project supports whilst maintaining a target level of headroom as defined by the target Debt Service Cover Ratio. The sum of principal repayments that can be made equals the amount of debt that can be borrowed.

Debt covenants, gearing, project and equity IRRs, and Net Present Values are among a range of key financing outputs that are generated from our models. These results are coupled with critical operating metrics, sources and uses tables, cash flow summaries, bespoke graphs, and key model inputs summarised and presented on a customised Dashboard providing you with a comprehensive overview of the whole project.

Our models are designed to efficiently run sensitivity scenarios where the senior debt repayment profiles are fixed but all other cash flows will vary according to the assumptions applied to test the robustness of the project to specific deviations from a ‘Base case’ scenario. A macro can be incorporated to automatically run through several scenarios and to record the key outputs for each one, providing you with a full picture of the robustness of your project and identifying the biggest areas of risk.

After financial close we can prepare simplified portfolio models that are easier to understand, maintain and update. These models recreate the original forecasts but they are designed to be easily updated to reflect actual performance as this information becomes available.

Our experienced data analytics and visualisation team create bespoke solutions for our clients which automate tasks, identify areas of inefficiency, and streamline processes (for example, in their regular reporting to private equity investors). Through automation and modernisation, data analytics and reporting with cloud-based business intelligence tools becomes quicker and easier, returning time and cost to our clients to focus on more strategic work.

By providing insights into existing commercial data, our experienced team help our clients make better and quicker decisions about their operations using intelligent data driven insights. When combined with a good financial model, deep historic data analytics also allows for better predictive forecasting with robust supporting evidence for future business assumptions.

Our bespoke solutions are designed by experts in data analytics and visualisation who ensure that the process is automated, robust, and transparent. Reports are then produced in a user friendly and intuitive manner to best present key information as quickly as possible. The scalable nature of our methodology means that these reports can easily be adapted to the needs of growing businesses.

Leveraging data analytics in preparation for a transaction enables the understanding of the full value creation potential, reinforcing the equity story. It gives greater confidence to all stakeholders and supports better negotiations, whilst also optimising business reporting post transaction allowing management teams to focus on delivering value for the business.