Case Study 1: UK Plc - Long term business planning & strategic options analysis »
Case Study 2: Private Equity - Acquisition modelling of a chemicals manufacturer »
Case Study 3: PPP / PFI Consultancy - Model risk analysis »
Case Study 4: Microsoft, Excel Development Team - Financial modelling training »
Case Study 5: NHS Trust - Management reporting solution »
Case Study 6: Fund of Funds PLC - Fund portfolio model »
Case Study 7: Railway Infrastructure Provider - Strategic business model »
Case Study 8: Private Equity - Model risk assessment & Renewable energy model »
Case Study 9: Hedge Fund - IPO model »
Case Study 10: UK Electricity Distributor - Corporate planning model »
Case Study 1: UK Plc – >£1bn turnover
Long term business planning and strategic options analysis
The model was developed with the close co-operation and input from various designated business unit representatives, to ensure that the model closely reflected the nature and key drivers of the business.
Once completed, the model was used in developing a comprehensive 5 year business plan in conjunction with the client’s lead advisors. The model has continued to be used and refined, supporting new financing for the business, increasing existing facilities by over £100m. It has also been used in subsequent strategic option analysis projects, to understand the impact of pursuing various growth strategies.
Case Study 2: Private Equity Firm
Acquisition modelling of a chemicals manufacturer
Our initial review of the target’s forecasts highlighted a number of deal-critical issues of which the Investor had not previously been aware. As a first step towards developing our own model we unravelled the detailed assumptions inherent in the existing forecast. We then worked with the target company FD and his staff to develop an assumptions-driven, integrated financial model to more reliably forecast the business post transaction.
The model helped the team of advisors (Corporate Finance and Debt Advisory specialists) to understand the impact of changes in highly volatile chemical commodity prices. This further confirmed the dependence on prices of a few key products. The model was used to understand the potential funding levels for the deal, and was flexible in allowing the team to evaluate a number of funding scenarios.
Case Study 3: PPP / PFI Consultancy and their Local Authority Client
Model Risk Assessment and analysis
As part of the finalisation of a deal to outsource Local Authority services, we clarified the risk of error in the bidder’s model, detailing any potential problems. Our work incorporated a high level risk assessment of the model integrity. We performed a detailed impact analysis, identifying and presenting, in clear graphical form, changes in key outputs.
Our report summarised the analysis in an intuitive and meaningful way. The review identified a number of coding or logic errors in the model and our analysis enabled the client to identify additional costs in the model which had not been agreed in negotiations.
Case Study 4: Microsoft – Excel Development Team
Financial Modelling Training
We delivered our training course to Microsoft's Excel development team to provide an understanding of how Excel is used for Financial Modelling. We now maintain a dialogue with the team to keep abreast of future developments.
Case Study 5: NHS Trust circa £450m Turnover
Management reporting solution
This London based NHS trust engaged Numeritas to develop an interim solution for a time consuming organisational reporting process which originally required 50 – 60 man days of effort per month to complete, and was fraught with problems.
Our consultants developed a single reporting tool which was able to generate the required reports in 30 minutes, to be shared and distributed with divisional and cost centre management. This required only one man day per month to generate management reports that were reliable and robust.
Case Study 6: Fund of Funds PLC
Fund Portfolio planning and forecasting model
Our client had developed a model in-house which had become unmanageable (>200MB MS Excel workbook) and was failing to meet their current and future requirements.
As a Fund of Funds investor, the client required a comprehensive model to forecast the behaviour of the funds they had invested in. The model needed to be able to handle up to 100 funds, each with a maximum of 35 investments. The solution had to be able to cope with a number of characteristics that would be different for each fund but needed to balance complexity and functional elegance with the ever-present issue of file size and usability.
The model we designed and built with our client addressed their detailed financial, fund and investment reporting requirements. The technical solution we developed provided enhanced “what-if” analysis capability allowing a number of Fund related assumptions to be flexed. We delivered to our client the tools necessary to forecast more accurately their cash position, manage their portfolio and communicate with their stakeholders.
Case Study 7: Railway Infrastructure Provider
Strategic Business Plan Model
Numeritas was engaged to develop a financial model to draw together the financial and regulatory information and commercial logic to prepare a revised strategic business plan to support business planning and negotiations with the regulator.
We worked closely with our client’s strategic business planning, regulatory and treasury teams to address the complex requirements of the models multiple stakeholders, and the various functions the model would be expected to fulfil.
Case Study 8: Private Equity Firm
Model risk assessment on Renewable Energy Model
This Private Equity client made a series of acquisitions in the renewable energy market. For each one, Numeritas reviewed the model, reporting to our client and to the arranging and syndicating banks. A total of five banks have accepted Numeritas’ assessment of the models as satisfactory assurance on the model as part of their due diligence performed in advance of lending.
Case Study 9: Hedge Fund
IPO model
Numeritas built a model to assist this hedge fund in its preparation for an Initial Public Offering (IPO). Our client deals in Collateralised Debt Obligations (CDOs) and needed a tool to forecast their cash position, based on assumptions about their investment performance and returns to investors.
Case Study 10: UK Electricity Distributor
Corporate Planning model
Following the creation of this business in 2007, the newly formed company needed tools to assist with its planning and forecasting activities.
We built a model that encompasses a complex multi-company group structure, with flexibility to accommodate a variety of types of internal and external debt facilities and both regulatory and statutory accounting treatments. The model is being used to support future bond issues and for day to day planning of tax and treasury and in preparation for negotiations with the regulator, ofgem.