Financial Modelling

The financial model is a fundamental part of any PFI/PPP transaction. Not only is the financial model the primary basis that procuring authorities use to compare different bids, but is also an essential tool in proving the economic viability and financial robustness of the project. The model should be used to evaluate different financing structures, lenders’ terms, tax and accounting treatments, payment mechanisms and sub contract terms. It is also the tool used to optimise all of the financial inputs of the transaction in order to produce the most efficient overall outcome. Put simply the financial model is an area that must not be overlooked in the bidding process.

DWPF has been at the forefront of the advancement of modelling practice over the past decade, having produced models to support over 100 project finance transactions. Consequently, DWPF has built up a large and rigorously trained  modelling team, leading to the production of high quality, innovative and user-friendly models for our clients.

DWPF utilises a standardised approach to modelling based on a proven and audited platform, whilst tailoring our models to the requirements of our clients. This standardised approach reduces the chance of error, speeds up the modelling process, and allows for easy comparison between models.

We have produced models for group and portfolio transactions, as well as individual projects, incorporating bank, bond and capital market financing structures. Models have included a number of derivative and swap market products and conform to relevant tax and accounting principles.

DWPF builds models for primary transactions, as well as to support the subsequent refinancing of transactions. We provide our modelling services as part of a wider financial advisory and consultancy package or on a stand alone basis.

In addition to building transaction based models DWPF has also built operational models to track the performance of assets over time for compliance and monitoring of banking and project covenants. This involves reviewing and rebuilding existing project models to update for actual performance, tax and accounting treatments. The operational models we produce provide the ability for end-user clients to update the model on an ongoing basis.