The process for building an M & A financial model involves the following steps:

1. Acquirer and Target model – this involves mapping the 3-statement model and the discount cash flow models for both the target and acquirer as well as creating a template model that will be the same for the two companies.

2. Deal assumptions – this includes transaction inputs, scenarios including synergies and financing, purchase price, sources and uses of cash as well as purchase price allocation

3. Closing balancing sheet – includes adjustments for the two balance sheets to arrive at a consolidated balance sheet

4. Proforma Model – 3- statement model for 

a. Income statement projections

b. Balance sheet including working capital, depreciation schedule, debt schedule and interest schedule

c. Cashflow statement projections

d. Free cashflow and discounted cashflow model

5. Accretion and dilution - to analyse the impact  of the transaction, comparing this to the position before the transaction and after the transaction

a. On earnings per share,

b. Cash flows per share, and

c. Testing scenarios as well

This is a rare service offered  by Still Waters, having dealt with the regulator on a number of occasions and therefore has experience with banking license applications. The work involves  meeting all the requirements of the application, including but not limited:

• Business plan
• Financial modelling for the business including products, investments, capex / opex, capital structures (debt and equity), required financial ratios etc.
• Policies required for that particular business
• Articles of association
• Setting up the business governance structures required for the application
• Systems and implementation thereof, for the new bank
• Engaging the regulator and answering queries that they may have on the application

We will work closely with you to access past and current situation financial information as well as crafting future assumptions about the business. Still Waters will build a financial model based on the following guidelines:

• Clarity

• Simplicity

• Planning

• Integrity

• Stress testing

This service includes access to various forms of financing, including debt instruments, equity investments and other forms of liquidity, as well as the following:

• Determining feasibility
• Business plan/Investment Memorandum consulting
• Financial strategies and modeling (as above)
• Market research

This service includes:

• Pricing banking products and other financial products to ensure that they are competitive and the business remains profitable
• Pricing and negotiating financial transactions to ensure that the buyer or seller gets the right / correct value of money. An example of this is where two entities have ‘agreed’ on a price in principle but one is not sure about the value and price. Still Waters will do the due diligence and financial modelling to determine the correct value for money. The fee for Still Waters in such transactions is based on the increase in value (savings in price paid / increase in price received).

Still Waters offers the following training programs:

• Introduction, Intermediate and Advanced Excel
• Dynamic Financial Analysis, Reporting and Forecasting with Advanced Excel Modelling Training
• Company valuations, including Mergers and Acquisitions in Excel
• Understanding the Bonds and Fixed Income Markets 
• ACI Treasury Basics
• ACI Treasury Operations – internationally certified course by ACI International
• ACI Treasury Dealing Certificate– internationally certified course by ACI International
• Foundations of Financial Risk– internationally certified course by GAAP
• Asset and Liability Management
• Introduction to Derivatives