Category: Balance sheet simulation
M&A: When two plus two is five or three or …
Mergers & Acquisitions (M&A) is a way for companies to expand rapidly and much faster than organic growth would have allowed.
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Working Capital and the Balance Sheet
Simplifying the balance sheet – using the concept of working- and operating capital.
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Working Capital Strategy
Net working capital is defined as the difference between current assets and current liabilities. It can be both positive and negative depending on the firm’s strategic position in the market.
Stochastic Balance Simulation
We know that forecasts based on average values are on average wrong. In addition deterministic models will miss the important dimension of uncertainty – that gives both the different risks facing the company and the opportunities they produce.
The Case of Enterprise Risk Management
Traditionally, when estimating costs, project value, equity value or budgeting, one number is generated – a single point estimate.
A short presentation of S@R
Most companies have some sort of model describing the company’s operations – but…
WACC, Uncertainty and Infrastructure Regulation
Calculating Wacc for a company for a number of years into the future is not a trivial task. Wacc is no longer a single value, but a time series with values varying from year to year.
The Probability of Bankruptcy
A good metric should have a low probability of rejecting a true hypothesis of bankruptcy (false positive) and a high probability of rejecting a false hypothesis of bankruptcy (false negative).
