Financial models support important decisions, and everyone wants to be comfortable that those decisions are based on a firm foundation. It’s natural, then, that thoughts turn to getting an independent check of these all important spreadsheets. But what actually matters when you are deciding who should review your financial model?
We believe there are three key areas to consider. You need someone who can offer an appropriate type of review. You need someone who has the right experience. And you need someone who is going to be easy to work with.
Our experience, expertise and streamlined processes means Operis is the ideal partner to conduct your financial model review.
Tailored Reviews
Different projects need different approaches to their financial model due diligence. Operis will agree a scope with you that reflects your actual needs and the complexity and risk of your specific transaction.
Our decades of experience in financial model audit means we have developed tools to accurately assess the complexity of any model. We can absolutely handle the most complicated models, but we can also absolutely tell the difference between those complicated models and the simpler ones. Operis will agree a work plan and timetable that’s suitable for you. We can tailor the scope of our review to your needs and budget, reviewing documents, sensitivities and tax and accounting treatments where this will provide value – and excluding them where they won’t.
A transaction model may need a fully fledged model audit, which involves a complete and thorough check of all areas of the model that are relevant to the decision at hand. In this case, parties relying on the model will want the model auditor to offer formal guarantees on their work. Our formal audits come with £5m of liability as standard, and can come with up to £20m. The quality of Operis’s reputation means that our opinion letters are trusted by lenders and sponsors alike.
If what you are seeking is not a detailed review of all areas, then Operis’s “High Level Review” offering is perfect. Using our vast experience in model audit we are able to focus our review on the elements of the modelling that are most likely to conceal material errors. You get comfort that the same outstanding calibre of team is looking at your model, but because the review in focused in this way it can be conducted far more quickly and comes with an exceedingly affordable price tag.
Experience and Expertise
Operis has been reviewing models for over 35 years, and in that time has conducted over 1,600 assignments. Our team reviews models for greenfield and brownfield infrastructure developments, mergers and acquisitions, project monitoring and debt refinancing.
We have worked in over 70 countries, on solar and wind plants, data centres and transmission networks, waste and water treatment facilities, oil and mining projects, schools, hospitals, courthouses, accommodation, roads and railways.
Not only does Operis the institution have this experience on paper, but it is embodied in our people. In the last few years we have celebrated 20th work anniversaries at Operis for 5 different employees, with more to come soon. We have several other employees who started their careers at Operis, then spent time elsewhere in senior roles and have now returned to us. Every single one of these individuals contributes a huge amount of expertise to our work. Our analysts and managers work closely together as one team across Operis’s London and Toronto offices, ensuring that this knowledge is shared efficiently with everyone.
Avoiding Headaches
You don’t just pay for a model review in cash – you also pay for it in your advisor’s time. The model audit team will raise questions that your advisors will have to respond to. In this age of AI it is all too easy for other reviewers to create a fire hose of questions that must be responded to. Operis will never do that.
Operis pride ourselves on the commercial relevancy of the questions we raise. Every single issues report we send out has been carefully shaped by one of our experienced managers to be as easy for you to handle as possible. The questions we ask are targeted, relevant and clear about what needs to happen next. We won’t waste your time.
We see the relationship between model builder and model auditor as one of partnership, not one of adversaries. We’re always happy to jump on a call to discuss points where that is useful. Clients say that one of the things they really value from Operis is our friendly approach and the clarity of our explanations.
Operis will work with you on your timeline to ensure you have the right level of comfort at every point in the process. We’re happy to arrange the timings of different parts of our review around your key approval dates. We know that it’s not just about whether you have an opinion letter to tick the box at financial close, it’s about ensuring the model is the trusted tool it needs to be at all stages of the process.
If you’d like to speak with Operis about our model review offerings please reach out to James Jones at jjones@operis.com.
