Modelling

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A well-constructed model capable of running numerous scenarios and sensitivities and presenting outcomes in an easy-to-understand manner may be of use to management for a variety of different purposes. We have a team of dedicated modelling experts that apply a mixture of strong analytical skills and technical acumen to develop robust models that help our clients understand the impact of decisions before they make them and strengthen their competitive position.

Contact us if you need to answer the following questions

Deals - do you have reliable and robust tools to critically appraise the opportunity?
  • Are the forecasts built up using the core value drivers of the business?
  • Do the forecasts allow you to run the key operational, commercial and financing sensitivities applicable to all key stakeholders (buyer, vendor, banks, management etc)?
  • Have the deal financing arrangements been fully integrated into the forecasts to enable sufficient cash and covenant analysis?
  • Is the model easy to understand and quick to update and enhance as the understanding of a deal changes?
Decision Making - does the management team have the analytical and commercial insight to make this decision?
  • Is there a rigorous and well defined investment appraisal process?
  • Is the pricing strategy driven through a fully absorbed cost allocation process?
  • Is there a single customer/product view of profitability by customer segments and product ranges?
  • Does management have the tools and processes to perform robust strategic options analysis?
Business Planning & Reporting - does management have:
  • Good visibility over their forecast liquidity and cash performance and projections?
  • A concise, insightful management / board reporting pack?
  • A robust budgeting and planning process?
  • The depth of personnel in the finance team to function successfully in a post deal environment?

How we can support you

Deal Modelling

Buy-Side - model the entire deal to support investment evaluation and improve positioning with finance providers by, for example:
  • Developing key operational, commercial and financing sensitivities
  • Integrating deal financing with cash and covenant outlooks
Sell-Side - add credibility to the business growth story by, for example:
  • Producing insightful analysis of historic performance
  • Understanding cash and profit dynamics to strengthen negotiating position
Restructuring - supporting creditor and bank negotiations by, for example:
  • Providing scenario and sensitivity analysis
  • Evaluating returns to interdependent creditor groups
Model Review - increasing confidence in forecasts by, for example:
  • Reviewing deal model structure and integrity
  • Reducing exposure to errors – no surprises

Decision Support

Investment Appraisal - support management’s decision making process by, for example:
  • Developing analytics to support single and multiple investment decisions
  • Evaluating past investments
Pricing - guiding management’s pricing decisions by, for example:
  • Providing commercial and analytical insight on customers and competitors
  • Evaluating the impact of pricing on margins and volume
Product & Customer Profitability- increasing visibility of performance by, for example:
  • Understanding the performance dynamics of different business segments
  • Identifying cross-selling opportunities
Strategic Options Analysis - providing financial rigour for tough decisions by, for example:
  • Establishing a robust evaluation framework
  • Providing an appropriate, pragmatic solution or tool

Business Planning & Reporting

Management and Board Reporting - providing insightful and easy-to-use reporting by, for example:
  • Focusing on industry specific KPIs and financial metrics
  • Integrating meaningful variance analysis and individual accountability
  • Enabling frequent and timely reporting
Cash and Working Capital Management - increasing the accuracy of cash forecasting by, for example:
  • Focusing management on the short term cash outlook
  • Identifying and monitoring cash improvement initiatives
  • Engaging the business outside of finance
Strategic Planning & Forecasting - aligning forecasts to the strategic plan by, for example:
  • Linking the forecast to the underlying business drivers
  • Developing flexible forecasts in sync with the business’s strategic ambitions
  • Embedding robust sensitivity analysis
 
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