What is an Operational Model… and do I need one?
Once a project finance transaction is finalised and the asset is constructed, it becomes crucial to monitor and report its continuous performance. The way the model is used and what it does before financial close changes significantly once the deal is agreed. Complex parts of the model that were extensively used to work out the […]
What is a Merger Model?
A merger model represents the financial position arising on the combination of two companies. Companies can combine in a number of ways including a merger under a mutual agreement to form a consolidated entity or an acquisition. An M&A model is an advanced model used to evaluate the pro forma accretion/dilution of earnings per share […]
Killer Errors – Base Dates
Another group of killer errors that can cause big problems are base dates for indexation, discounting, and NPV calculations. This is one close to my heart as many years ago, believe it or not, I had included an incorrect base date in an NPV calc! Thankfully it came to light before the bid went in, […]
What is a Three Statement Model?
A Three statement model is a basic setup for financial modelling. This type of model includes three different statements: Income statement Balance sheet Cash flow These are all linked with Excel formulas. The objective is to set it up so all the accounts are connected and a set of assumptions can drive changes in the […]
