Financial services transaction modelling
Our client acquired a well known financial services company in Norway in order to broaden their services in Scandinavia. As part of the transaction, they needed an understanding of the target's medium to long term financial statements.
The challenge
The client required a forecast based on historical data. The challenge for PwC was that due to the client recently establishing and divesting a number of services, the historical data and drivers were not consistent and did not provide a realistic forecast.
The outcome
Using our financial services experience and through discussions with the client we identified drivers that were able to be reliably forecasted. This allowed us to design and develop a 3-way model (profit and loss, balance sheet and cash flow statement) of each service and of the consolidated business. The client was able to use the model to assist in determining a valuation and to understand future shareholder payments.
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