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.
Capital, M&A and Transaction Services
Modeling Team Success Factors
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:
Three Statement Forecasting Models
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.
Short-term Cash Flow Forecasts
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.
Project Finance and Infrastructure Models
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 and Debt Waterfalls
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.
Remediations and Counterfactuals
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.
Teneo refers to Teneo Holdings LLC and its subsidiaries and affiliates worldwide. Securities products and services are offered in the United States by Teneo Securities LLC, member of FINRA and SIPC.
Details of the entity providing services, legal and regulatory information in respect of the Teneo entity are also included in our engagement letters.
Specific information relating to our regulated entities which provide services to clients is detailed below:
|Registered Name||Legal Form||Registration Location and Reference||Registered Office||Data Protection||Regulator(s)||Professional Indemnity Insurance|
|Teneo Financial Advisory Limited||Limited Company||England & Wales, 13192958||5th Floor, 6 More London Place, London, SE1 2DA||UK - ZA920639||The Institute of Chartered Accountants in England and Wales (“ICAEW”) C008873136. All insolvency practitioners are licenced by the ICAEW. ICAEW Designated Professional Body licence for a range of investment business activities.||Details of the professional indemnity insurer can be provided on request.|
|Teneo Securities LLC||Limited Liability Company||USA - Delaware||280 Park Avenue, 4th Floor, New York, NY 10017||N/A||Financial Industry Regulatory Authority (FINRA) #151256. Securities and Exchange Commission (SEC).||Details of the professional indemnity insurer can be provided on request.|
Teneo Securities LLC’s Business Continuity Planning
Teneo Securities LLC has developed a Business Continuity Plan (“BCP”) on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our BCP.
The Firm has developed and installed a BCP in the case of any business disruption that causes the Firm to have limited or no communications with its employees or customers. Our plan anticipates two types of business disruptions, internal disruptions which affect only our Firm’s ability to do business (such as a fire in our building) and external disruptions that prevent the operation of securities markets or other firms (such as natural disasters or acts of war).
The Firm intends to stay in business during both internal and external disruptions due to the fact that the Firm employees can conduct Firm related business from alternate off-site physical locations and the Firm maintains an alternate location for the maintenance of its books and records. We anticipate that the Firm will recover from internal business disruptions within 24-48 hours. An outage due to an external business disruption may be longer and is beyond the control of the Firm. However, the Firm will endeavor to resume business as soon as it is possible for the Firm to establish business operations from alternate off-site physical locations.
The Firm’s BCP specifically addresses the following areas related to Firm operations:
- Data back-up and recovery (hard copy and electronic);
- All mission critical systems;
- Procedures to test and determine the Firm’s ability to do business (i.e., financial and operational assessments);
- Alternate communications between customers and the Firm;
- Alternate communications between the Firm and its employees;
- Alternate physical location of employees;
- Critical business constituent, bank, and counter-party impact;
- Regulatory reporting; and
- Communications with regulators.
If you have questions about our business continuity planning, you can contact us (212) 886-1600.