Financial Modeling

Building Confidence Through Robust and Reliable Financial Models

Financial modeling is the bedrock of sound financial decision-making, and for lenders, it is absolutely critical to accurately assess a borrower's projected financial performance, debt servicing capabilities, and overall viability. At Opportune, our Financial Modeling services provide lenders with the assurance that the models they rely on are built with integrity, adhere to financial modeling best practices, and provide a clear and accurate picture of the financial future.

We understand that lenders need financial models they can trust, whether they are evaluating a new credit request, assessing the impact of a potential transaction (like a merger and acquisition model), or monitoring the ongoing performance of an existing borrower. Our team possesses deep expertise in creating financial models across various industries and for diverse purposes, ensuring accuracy and transparency.

How Opportune Supports Lenders with Financial Modeling

Opportune's Financial Modeling services provide lenders with independent, expert support in evaluating and utilizing financial models. We help you gain comfort with the numbers and the assumptions that drive them. Our team is proficient in various modeling techniques and experienced in building models for complex situations. We stay current with industry standards and developments in financial data modelling. Many of our professionals have backgrounds that include rigorous financial modeling training and relevant certifications, such as, or similar to, a chartered financial modeling professional designation.

Our Financial Modeling Services for Lenders Include:

• Independent Financial Model Review and Validation: Thoroughly examining borrower-provided financial models to identify errors, assess assumptions, and validate the integrity of the model structure. This includes reviewing excel financial modeling files for best practices and potential issues.
• Development of Lender-Focused Financial Models: Creating financial models specifically tailored to a lender's needs, such as debt capacity models, repayment capacity models, and covenant sensitivity models.
• Scenario Analysis and Stress Testing: Developing and running various scenarios and stress tests within existing or newly built financial models to understand potential outcomes under different economic or operational conditions.
• Evaluation of Transaction Models: Providing expert review of merger and acquisition models, merger models, or models related to other significant borrower transactions. We also have experience with specialized models like real estate financial modeling and private equity financial modeling.
• Assessment of Financial Planning Models: Reviewing a borrower's internal financial planning models to understand their forecasting process and the reliability of their internal projections.
• Financial Statement Modeling: Building or reviewing models that forecast key financial statement modeling components, including income statements, balance sheets, and cash flow statements.
• Providing Clarity on Complex Models: Helping lenders understand the drivers and mechanics of intricate financial models, including those used in investment banking models.
• Identifying and Addressing Model Weaknesses: Pinpointing areas where a financial model may be overly optimistic, lack transparency, or fail to capture critical risks.

Financial Modeling Expertise Backed by Industry Best Practices & Real-World Applications

We leverage our extensive experience and knowledge, drawing from best practices often taught in financial modeling courses and found in reputable financial modeling books. Our team can provide clear excel modelling examples to illustrate complex concepts. For lenders interested in enhancing their internal capabilities, while we don't offer public classes, our experts possess the knowledge gained from various finance modeling courses and training programs. We can discuss the capabilities needed to learn financial modeling effectively. We are also aware of various financial modeling tools and platforms, including those that offer free financial model calculation platform capabilities, and can help assess their suitability. We can also provide insights into various financial modeling examples relevant to different industries and transaction types.

Benefits for Lenders:

• Increased Confidence: Make lending decisions with greater confidence knowing the underlying financial models have been rigorously reviewed.
• Improved Risk Assessment: Better understand potential downside scenarios through robust stress testing and sensitivity analysis.
• Enhanced Negotiation Position: Gain leverage in loan negotiations with a clear understanding of the borrower's financial projections.
• More Effective Monitoring: Utilize reliable financial models for ongoing covenant compliance and performance monitoring.
• Time and Resource Savings: Leverage Opportune's expertise to efficiently review and validate complex models.