E rrors in financial models are a major risk factor. Every day poorly constructed models used for critical business decisions, with enormous risks for all stakeholders. Our Project Finance Modeling practice was built to address this situation. We work with you to develop tailored financial models which are transparent, robust and flexible, or to audit your models to improve the integrity and analytical insights so you can see your project through to completion with confidence.
How We Help
Our Project Finance Modeling practice is focused on three sectors: mining, renewable energy, and infrastructure. Working closely with bankers, sponsors, and operators, we develop robust financial models that our clients can rely on to gain greater visibility into their project’s economics, manage risks, and secure the funding they need to ensure a smooth, successful outcome.
We work closely with operators to determine the economic viability of their projects. Our feasibility analysis services include:
- forecasting cash flows to determine payback and IRR
- stress testing commodity prices to ensure ability to operate as going concern
- determining the optimal capital structure that is conducive to the economics of the project
When raising capital or refinancing, lenders need robust financial models and valuation analyses as part of their underwriting process. We help operators in the following areas:
- building dynamic and transparent NAV models with detailed operating assumptions
- developing detailed credit and return metrics such as DSCR and ROCE
- analyze return waterfalls based on GP/LP flip structures
Errors in models is a major risk to infrastructure finance projects, given the large stakes involved. Our Model Audit practice is designed to eliminate model risk by:
- performing cell-by-cell review, supported by model audit software
- conducting commercial/industry analysis using benchmarks andratios
- stress testing assumptions, sensitivities, and scenarios