Financial Modelling & Valuations
CMA Case Study
CMA is an ASX listed metals recycling company that operates a network of 20 recycling facilities in six different countries. SLM has been providing CMA with a variety of financial modelling services over the past 12 months. Our major task involved designing and building a brand new bottom-up, dynamic, 3-way financial model for the group. Activities performed included:
- Identifying the key revenue, expense and cash flow drivers of the business
- Developing a 3-way financial forecast template model for each of the individual plants’ operations (P&L, Cash Flow & Balance Sheet);
- Overlaying the model with additional functionality to enable critical sensitivity analysis to be performed on key input drivers;
- Creating a mechanism to consolidate the various individual plant models by country in local currency; and
- Creating a mechanism to consolidate the entire groups operations into a single set of financial forecasts converted into Australian Dollars (P&L, Cash Flow & Balance Sheet).
The resultant financial forecast model created enabled CMA management to gain greater visibility over their future financial performance and position. This led to more informed decisions being made and enabled management to identify CMA’s future funding requirements. As a result, the models we built for CMA played an integral role in the company’s recent successful restructuring, refinancing and capital raising activities.
