Corporate Finance Model

The corporate finance model is mainly targeted at acquisition analyses in which the target is a stake in, or complete ownership of, a company operating in a real estate business, which either owns or manages real estate assets. This model is suitable for MBOs, LBOs or any other acquisition situation.

With the corporate finance model, the main objective is to evaluate a feasible acquisition price for the target. For this purpose, the model generates all relevant income and expense cash flow forecasts for the target, making the greatest possible use of actual real-estate data such as rent rolls, budgets, known lease expirations, starting leases etc. to which the acquirer has access. The model generates expected free cash flow and dividend streams on the acquisition. It also creates prognoses for a wide range of the relevant financial ratios.

After an acquisition has been completed, the same model is well-equipped for use in the day-to-day management of the new business. You can track the forecasts made on the acquisition and compare how they match with the actual outcomes over time, as well as analysing changes in the business environment and new strategic decisions.