Corality is a financial modelling methodology which enables professionals and organisations to work with a structured approach to financial model development. The Corality Financial Modelling methodology enables an increased level of standardisation for model architecture, presentational elements and calculation logic, but is flexible enough to allow for individual adaption as required.
Applications of Corality Financial modelling
Project finance / PPP
A project finance transaction requires a transparent model with full flexibility for all assumptions given the large number of stakeholders interacting with the financial model. Using the well-established structures of Corality Financial Modelling enables all parties to evaluate the transaction from their own perspective, without having to compromise the base case.
Corporate strategy and budgeting
A well performing financial model for corporate strategy or budgeting must fulfil a range of requirements to be a success. It must of course be robust and accurate, but also be developed in a way that reduces key man risk often seen when complex models can only be operated by one individual. Additional flexibility in the model to answer ‘what-if’ questions is essential to ensure that senior management, investors and the board can rapidly and accurately evaluate strategic options.
Merger & Acquisitions
M&A processes almost always lead to increase working pressure for the parties involved. Working under pressure for a prolonged period, increases the risk for modelling errors, particularly when analysis is performed in the late hours or with reduced sleep. Working within the guidelines of Corality Financial Modelling provides a quality benchmark which reduces the pressure on analysts and provides deal professionals and decision makers with a more robust base for financial and strategic decisions.
Investment feasibility analysis
Developing a new venture or investment is a process that can often take numerous years. Whether you’re developing a tech start-up in California, a solar farm in China or a new mine in Namibia, you will need a financial model at various stages of your development. Corality Financial Modelling provides the robust framework combined with sufficient flexibility to enable your process to progress from early stage analysis through capital raisings to valuation and exit analysis.
Financial modelling of regulatory frameworks leaves no room for error. Corality excels in these environments where transparency in calculations and full flexibility in calculations is paramount. Corality has been successfully used in regulated assets all over the world, in areas including water, gas, rail and telecoms.
For a robust valuation of any asset or company it is essential to have a full understanding of future cashflows and financial statements. Having the ability to stress test your valuations for economic shocks, growth assumptions, margin pressure, gives you stronger insights and a more robust valuation.