Practices

Corporate practice Merges and Acquisitions (M&A) Holding structuring Pre-IPO structuring Tax practice Litigation practice International commercial arbitrage Administrative practice

Criminal law practice Intellectual property practice Financial practice Investment practice Practice of financial market International practice Labor law

Financial practice

Incor Alliance Law Office provides financial modeling services, including financial analysis of the actual structure of the group of companies and introduction of a revamped financial business model, which allows us to effectively utilize the financial flows of the new corporate structure, to forecast a new financial result and to optimize tax burdens.

Tasks and objectives of building a financial model:

• Financial efficiency estimation of the current Group's business model

Industrial activity analysis, on the basis of the financial reports of the Group, on every kind of business, considering major expenditures and earnings, estimation of a free cash flow from the business of the Group and estimation of internal rate of return (IRR), net present value (NPV) values, financial stability index, liquidity, profitability and debt ratios.

• Financial efficiency estimation of the prospective business model of the Group

Industrial activity analysis on every kind of business, contemplating re-structuring, major expenditures and earnings in the forecasting period. Creating a forecast for the needs of the Group’s financing. Consolidation of the financial result of the Group, estimation of the financial stability index, liquidity, profitability and debt ratios in the forecasting period.

• Estimation of the financial effect from the re-structuring

Comparison of the company’s activity financial results before and after the re-structuring, change in the taxation, modeling an optimization thereof, estimation of risk/profitability indicator change, and estimation of the re-structuring added value.

• Estimation of the business cost by the method of discounted cash flows

Estimation of free cash flow from businesses of the Group and an estimation of the internal rate of return (IRR) and net present value (NPV) values by the method of discounted cash flows.

• Estimation of financial results sensitivity

Development of an instrument for evaluation of the financial results, sensitive to changes in internal and external factors of the running of a business. Carrying on analysis of the financial sensitivity to the change in initial values (pricing environment, price inflation, tax policy, currency exchange rates, etc.).

Financial modeling is most often carried out as part of the company’s activity on holding structuring.