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Global Newsletter & Insights Series
Hyper-volatility is the new normal. In times of unprecedented change, stakeholders need to rely on forecast models which account for more rapidly changing variables than ever before.
With increasing complexity, the continuing challenge is to create user-friendly forecast models which are robust and simple for the user. With additional third-party reliance and challenge, as well as differing forecast software options (no longer just Microsoft Excel), there has never been a greater need for specialist modeling expertise.
Teneo's team of financial modelers comes with deep commercial experience. The team creates robust, auditable, user-friendly models using best-in-class techniques with proven methodologies to support stakeholders with key decisions.
We listen to and work together with our clients to offer customized and flexible financial models to support their strategic decision-making, reporting processes, forecasts and bid submissions.
In addition to Microsoft Excel, we deploy specialised model review and analysis tools provided by our expert review software partner.
Team consists of experienced professionals from a variety of commercial backgrounds. We go beyond just building spreadsheets and seek to understand the underlying business to ensure the model truly suits the enterprise.
We offer a range of financial modeling solutions that are client-centered and based on our proven methodological approach. We are versed in international modeling approaches (FAST standard, ICAEW code) as well as public sector guidelines such as those in the Macpherson report. Examples of our solutions are listed below:
We build robust, flexible and easy to use three statement financial models (P&L, cash flow, balance sheet) to support business forecasts, budgets and strategic decision-making. These models can incorporate sensitivity/scenario analysis, specialized reporting templates and graphical dashboards.
Bespoke “bottom-up” models, reflecting a company’s key operational and financial dynamics, are a core part of our offering. We can create these from scratch, or review and optimize existing models where needed.
Three statement models include:
The Financial Modeling team has significant experience building buy- and sell-side M&A models.
On the buy-side, we have worked on bolt-on acquisitions, public to private transactions and corporate carve-outs. On the sell-side, we have modeled the sale of entire companies as well as minority stakes across the primary and secondary markets. We work closely with our clients to ensure our models fully reflect their requirements. We also have strong relationships with lenders and financial institutions, and legal and technical advisers, giving us an understanding of the different assumptions likely to be required.
Capital structure modeling is a key component of debt refinancing, restructuring, equity raising and M&A transactions. By rapidly evaluating the potential outcomes of different deal/debt scenarios, companies and lenders can obtain a clearer picture of viable deals, leading to quicker and more successful transactions.
Our three statement operational models are aligned with management accounts, allowing end-users to update for actual results, which in turn drives updated forecasts, variance analyses and tailored outputs. These are perfect for companies seeking to accurately forecast and then monitor performance to budgets.
13-week cash flow forecasts (STCFs) are becoming more widespread as businesses and their stakeholders seek to understand their future liquidity positions in times of uncertainty. We have significant experience in producing STCFs, from small businesses to multinational conglomerates. Where needed, we partner with Teneo’s cash experts to deliver the best results for our clients and can help companies review, build from scratch, or optimise their existing processes.
We also have experience in sizing liquidity requirements for assessing deal transaction runways or Chapter 11 DIP funding court applications.
The Financial Modeling team has dedicated infrastructure experts who build models to assess the economic viability of infrastructure projects and project finance models including PPP/PFI and regulated asset base models, as well as models for established projects. We also provide specialist financial and modeling advice to the public sector to support contract management and efficiency reviews.
Entity Priority Models (EPMs) are a key component in developing the “Relevant Alternative” for Schemes of Arrangement and Restructuring Plans in the UK, as well as more generally for helping companies or lenders understand their likely outcomes in different scenarios. We have significant experience in this area and can both construct or review these types of models as well as similar waterfall and estimated outcome statements.
Counterfactual models are often required in complex situations such as legal proceedings or regulatory matters. These models may involve 3rd party expert input and need to be legally defensible for potential court/regulatory scrutiny.
We have significant experience in model builds in this area, including payment protection insurance remediation, packaged bank account mis-selling, PSD 2 open banking scenarios, project damages claims, swaps mis-selling and latent claims estimates.
We work directly with the Teneo Valuations Advisory Services to produce or review bespoke valuation models for companies, portfolios, lenders, investments funds and other stakeholders. We are experienced in both private and publicly listed entities and employ key valuation methodologies including discounted cash flow and earnings multiples in line with best practice.
The Financial Modeling team has dedicated training and seminar delivery experience. We are responsible for Teneo’s internal Excel and modeling training and also deliver bespoke external training on a number of Excel and modeling related topics.
A key function of the Financial Modeling team is to support clients in doing their work easily and more quickly. To this end we regularly create tactical Excel tools, using VBA when required, to transform source data or create bespoke outputs in a quick and user-friendly manner. When programs other than Excel are better suited, we work directly with the Teneo Analytics Team for optimum results.
Although the team does not provide model assurance/audit as an offering, we have significant experience in the review and assessment of 3rd party models, advising companies and lenders whether they are fit for purpose. We partner with a specialist model audit software company to use the latest tools, coupled with a defined model review approach, to identify and manage risks.
Our blend of technical modeling and commercial experience means we are uniquely positioned to know where and how to look for errors in models, and we have the commercial insight to know how business fundamentals should translate into a model. If required, we can also provide improvements or modifications to models to remedy issues found in the review process.
