Validations
Validations for custodian banks
What challenge/ problem did the client come with?
We provide model validation services for custodian banks that use a number of valuation models and are responsible for ensuring their correct operation.
What activities did we propose and carry out?
We verify the correctness of the adopted methodology and parameters, and the correctness of market data included in those models. In the case of company valuation models, we also check models embedded in Excel spreadsheets to eliminate potential calculation errors. In the case of the valuation of debt instruments and derivatives, we often make recalculations to determine their values in accordance with our methodologies and parameters.
Validation of an external valuation for an investment fund
What challenge/ problem did the client come with?
Our client, an investment fund, planned to join an infrastructure project co-financed by the local authorities.
What activities did we propose and carry out?
An external advisor prepared a financial model showing financial flows related to the project. To ensure a higher level of security, the fund hired us to verify that financial model, and above all – to check compliance of its parameters with the contracts concluded with the local authority and the correctness of the project’s projected profitability.
Internal validation for the owner – fairness opinion
What challenge/ problem did the client come with?
The client needed to validate the correctness of the share purchase price in a tender offer prepared by the company’s management board.
What activities did we propose and carry out?
We prepared an opinion for the client on the fairness of the share price proposed by the management board in the tender offer. The fairness opinion was based on the assessment of the assumptions adopted by the client’s management board in determining the price, applying them to the constructed financial model based on market data, and verifying whether the model valuation corresponded to the price proposed by the management board.
Premium class finance
You feel that your business is gathering momentum and you want to take it to the next level. Makesure you are treading on firm ground, and entrust your financial matters to GROUND FROST.
We guarantee that this will be a good investment!