Business Planning and Valuation Models

TradeRisks provides customised business plan models integrated with our simulation models and markets databases. These models allow the client to test assumptions on a large number of scenarios. Such assumptions may be in the form of changes in debt portfolio structure, operational cashflow projections, capital expenditure or funding projections going forward.

While conventional sensitivity analysis models determine the best response to each scenario, they fail to value the options that are available only before certain information, such as demand, is known. TradeRisks uses scenario planning models that take full account of embedded real options to expand or abandon projects. For example, a strategy that is suboptimal based on a conventional scenario analysis model may be optimal in the face of scenario uncertainty (captured within TradeRisks' scenario planning model), and conversely. 

The models measure the "Enterprise Value" under alternative scenarios, thus providing the means to evaluate the marginal contribution of new business strategies within a rigorous framework of risk management.

For not-for-profit enterprises, such as housing associations, the models measure the marginal contribution of each new business unit in terms of "total return" measures which take into account development standards, number of people housed, community development, etc.

TradeRisks is also a Brixx Certified Partner, providing comprehensive business planning services, including structuring, population and training for all plans, business plan reviews and validations, Monte-Carlo and stress testing risk analysis and the provision of on-going economic recommendations.

Project Evaluation and Project Management

TradeRisks uses its sophisticated valuation techniques and methodologies to evaluate a variety of projects including mergers, acquisitions, and joint ventures. Using advanced analytical allows both meaningful valuations and comparable valuations to be performed.

TradeRisks also provides financial evaluation of development and investment opportunities including detailed sensitivity analysis, SWOT and PEST analysis, and structuring advice. In the case of competitive bid or tendering processes TradeRisks can incorporate this into any bid, highlighting the value added, depth of financial understanding, and overall credentials of the bidding organisation. TradeRisks can project manage the bid process and, upon completion, assist in the post-selection process and implementation stage.

Structuring

TradeRisks incorporates legal, tax, accounting, property, and finance experience to create the right structure for each project and investment vehicle.

Each structure, be it UK domestic or cross-border, is designed to client specifications with a focus on the commercial goals as well as tax and financing.

Structures used have included joint ventures, limited liability partnerships, vanilla corporates, CICs, REITs, and closed ended funds.