Financial Modelling Services (FMS) are an important tool in the advisory support of the GET.invest Finance Catalyst. FMS aim to confirm the financial feasibility of business plans, and to support negotiations with multiple financiers reflecting the effect of their various terms of conditions.
FMS are critical for project success as they translate and test financials to confidently inform the fundraising process. Initial financial models can cause misrepresentation of business plans and often do not speak the language of potential financiers. This can put a halt to time-intensive fundraising efforts and negotiations towards the end of the project development processes, leading to a loss of business opportunities and frustration on the side of financiers and developers. Particularly in times of uncertainty such as during the Covid-19 pandemic, preparing and adapting financial forecasts is therefore paramount for business success and investor relations.
FMS by the GET.invest Finance Catalyst
The uniqueness of FMS provided by the GET.invest Finance Catalyst lies in combining the team’s global financing network and in-depth knowledge of the clean energy sector in emerging markets with specialised financial modelling skills. As this service, like other services of the Finance Catalyst, is provided from the perspective of an independent advisor, the financial model can be structured and improved according to the requirements and modalities of any or several financiers.
“Many thanks to the advisors for your extraordinary support to the project developer in putting together the financial model in a record-breaking time, as well as reviewing the policies. All of this is very much appreciated.”
– Feedback on FMS by a Development Finance Institution
This makes the FMS by the Finance Catalyst a unique offering in the clean energy sector in emerging markets, especially in the segment under EUR 60 million of project financing or EUR 10 million of SME financing. This is where GET.invest strives to add value to the market, thereby establishing standards and exchanging knowledge with other service providers.
With the financial models currently completed across the Finance Catalyst portfolio of business models and technologies, a library of templates becomes available for multiple use.
Financial Modelling in practice
Assistance via FMS requires a deep dive to test the business proposition on financial feasibility, dissecting the business case to the point a banker or investor would. There is no shortcut to understanding the operations of a company. That is why the project sponsor and the advisor will analyse the business plan to ensure that assumptions and drivers adequately represent the business to potential financiers. Subsequently, the Financial Model is vetted against the Term Sheet of the financier(s) and the Finance Catalyst advisors provide feedback in multiple iterations.
Would you like to learn more about our Financial Modelling Services or receive support for your project or business idea? Find more information in the downloads below. To obtain a copy of a Financial Model skeleton please contact firstname.lastname@example.org.
FMS are an integral part of the services offered by the GET.invest Finance Catalyst, for which you can apply via our online tool.