Deal Modelling
Helping you make better decisions
You make decisions that affect the future of your business on a daily basis. Financial models are used to support almost every critical business decision. It is essential that you have confidence in your financial models.
We design and deliver best-in-class financial models tailored to your business’ needs and use our bespoke model review methodology to provide the comfort you need to make better decisions
With access to PwC’s Global Network we can bring the right team of industry experts and other specialist advisors to the table
When can we can help
Transactional
- Acquisitions (sell-side & buy-side)
- Joint ventures
- Refinancing
- Carve-out / divestitures
- Distressed / option analysis
Business as usual
- Strategic planning and forecasting
- Budgeting and management forecasting
- Short-term cash flow forecasting / liquidity management
How we can help
Model build
In a typical model build project we adhere to our modelling best practices and follow a structured and interactive process to ensure a successful model build together with you.
Modelling best practices:
Model structure
A model is structured in a robust, logical way to convert inputs into a reasonable set of financial forecasts
Capture key drivers
A model should capture key drivers to arrive at the outputs required by the users
Flexibility and ease of use
A model should be flexible with the ability to adjust inputs dynamically and perform sensitivities and scenarios
Enable decision support
A model should be a tool to support decision making of our clients
Six phases in a model build process
| Phase | Key question to answer | Purpose | |
|---|---|---|---|
| 1 | Scoping | What is the aim of the model? | Understanding your needs |
| 2 | Specification | What does the model blueprint look like? | Provide clarity |
| 3 | Design | What should the outputs of the model look like? | Embed usage in the organisation |
| 4 | Build | Does this work? | Create a fit for purpose model |
| 5 | Test | Is this what you expect? | A happy client |
| 6 | Handover | Do you need further guidance or training? | Embed usage in the organisation |
Model Review
A full review of model mechanics with additional focus on commercial considerations and reliance of model outcomes
Purpose: ensure that models are reliable and robust
Reliance on review methodology and procedures
Financing banks or potential buyers might require reliance on the review procedures performed, to increase levels of comfort that the model works correctly
Non-technical considerations and discussions
Typically, we perform our model review on the technical components, but also engage in discussions on commercial and deal considerations with our clients
Answer key questions
- Do our review procedures give rise to concern on the integrity of the model
- Is the model the best tool to answer the question of our client?
- Can you rely on the outcomes of the model?
Model Health Check
A targeted, fast and cost effective review approach prioritising the high-risk and high-complexity sections of the model
Purpose: present key model insights
Assess error vulnerability
Understand the likelihood of error and identify opportunities to reduce it through best practices
Unlock new insights
Demystify a model’s logic and flow, unlocking meaningful insights and perspectives
Answer key questions
- Are key calculations working properly?
- Is it fit-for-purpose? Too complex? Not complex enough?
- Am I missing any important commercial considerations?
Model Training
We can add to your in-house expertise by creating centres of modelling excellence within your organisation, enhancing the modelling and analytical skills and establishing your modelling standards and best practices. Trainings can be fully tailored to your needs.
Modelling expertise
Vast experience in building and reviewing (financial) models both in deal situations as in “business-as-usual” context, which we can leverage when facilitating trainings and workshops to your finance staff
PwC academy
Well established educational methods developed by our internal PwC Academy to provide engaging, insightful and meaningful workshops and learning materials
Sector knowledge
Technical modelling expertise can be brought together with deep sector knowledge through our broad network of industry experts, understanding key value drivers and topics concerning your industry
Experience
An experienced Amsterdam based international team with extensive modelling knowledge gained in serving a wide range of companies, offering practical insights gained in successfully finalised projects
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