Transact – Transactional support

We assist with modelling and advisory support in the following four key areas:

Developing the Strategy: The first step involves:

• Developing an understanding of the strategic options available
• Determining the key drivers of value of the business, now and in the future.

Shaping the Deal: Determining the appropriate capital structure is key. and the returns to each stakeholder, together with understanding risk to those returns of change in both macro economics or operational performance. Typically, this involves marrying up the terms of the deal and to simulate to address the presented risks, under a number of scenarios and sensitivities. It can be complicated by the number of stakeholders involved.

Executing the Deal: The complexities of execution include planning the negotiating strategy through to finalising terms together with supporting regulatory, statutory, and management reporting.

Post-Deal Support: After periods of change, new processes, tools and reporting metrics are often needed.

• Develop the Strategy: Working closely with our deal advisory colleagues, we embed ourselves within the client’s business to understand the strategic options of the transaction, and identify the drivers of value. We support our colleagues by developing tools to stimulate the strategic options available, allowing the project team to understand and assess the impact of pulling different levers on shareholder wealth.
• Shaping the Deal: Typically, through the use of an integrated financial model, we present the proposed capital structure of the deal, under a number of scenarios, to assess the structure relative to the identified risks of the transaction. This is usually an iterative process, due to the multiple stakeholders involved. Acting as gatekeeper for all financial and operational information, we provide confidence on the assumptions being used.
• Executing the Deal: We support our clients through the completion of the deal, providing quantitative data, supporting models to stakeholders, or for regulatory reporting requirements such as working capital reports.
• Post-Deal Support: We support our clients to manage the post deal reality, from ongoing reporting and management information, to the development of budgeting processes. We implement interim-reporting systems, whilst creating intuitive and user-friendly dashboards, using programmes such as PowerBI and Tableau, to visualise the reporting process. We work with clients to understand the key reporting indicators, and key measurements of financial performance and progress, so that these can be core to the design of the system.

• We supported a FTSE 100 client in developing their strategy to rebuild their balance sheet after a period of market turbulence. Our role included simulating the strategic options together to understand the impact of the business of a complex M&A strategy and multiple equity transactions.
• We supported a business renegotiate their senior debt facilities after a period of poor performance against their business case. We rebuilt their stakeholder model to reflect the operations of the business and the impact on their cashflow and capital structure.
• We have supported multiple clients with the developments of their working capital models underpinning their capital market transactions.