We know investors require consistent, robust and best-in-class Discounted Cash Flow approaches for due diligence – while ensuring hectic deal pipelines can be filtered efficiently by the team.
industry issues
Teams are resource-constrained
Other business priorities and asset management initiatives often consume staff diaries. In the UK market alone, there are over 2,000 deals per annum -excluding off-market spec ideas- and arbitrary decisions are taken to filter opportunities. A typical Analyst pool is unable to consistently analyse all opportunities presented by brokers and JV Partners in a consistent manner.
Paralysis by Analysis
While complex templates and powerful Argus Enterprise or MRI Software may serve detailed property management reporting, these systems can create Paralysis by Analysis when scenarios need far more flexing or colleagues struggle with complex user 1990s-origin interfaces that confuse a modern app audience. Investment Committee members cannot access or manage for themselves these team appraisal files. E.g. a CEO is often unable to change a bid price to see impact on IRR without an analyst tasked with punching in the Price. Targeting simple results is not straightforward.
Excel templates are slow and risky
Excel templates have been manually created for the past 30 years. The origins and documentation of team legacy models are rarely audited professionally. Let alone after various ‘butchered’ updates to fix, refine or expand a corporate template. Limited Partners are increasingly asking about best practice and Governance measures as part of their ESG due diligence.
Staff cannot trust metrics easily
Monday team pipeline meetings are a classic example of how newly-introduced deals can only be discussed at a ‘big picture’ level. Basic sensitivity answers around rents, yields and CAPEX expectations are not possible without allocating analyst time and reconvening the meeting at a later date to explore essential DCF dynamics that stretch human intuition. When current ‘black box’ methods (e.g. Argus Enterprise and MRI Software) are copied and pasted into ‘transparent’ methods (e.g. Excel or Google sheets), trust is further eroded with such high-risk processes.
Experience a winning ‘dual-track’ DCF method.
Case Studies
Case Study: New Corp. Template
Rebuilding a corporate template is a complex and potentially daunting task for the most sophisticated of Fund Managers. Only best-in-class teams work through a proper scope-design-implementation cycle and ensure all internal stakeholders from originators, fund managers, treasury, research, finance and Investment Committees are involved. This is what Rockspring Property Managers achieved, and was one of its award-winning client reporting qualities that appealed to PATRIZIA AG. This sort of projects can easily take 18 months – requiring an additional hire to assist a busy team already consumed by routine operations.
Case Study: M&G Real Estate
Gaining trust in numbers is a considerable fund management task. To explain the ‘black box’ results from Argus Enterprise, M&G Real Estate developed an in-house tool called Fairval. M&G Real Estate knew that double-checking numbers via an independent system would enhance quality assurance. M&G Real Estate was one of the first major corporates to recognise the ‘dual approach’ method Dashflow employs to run and double-check numbers. In the first meeting, Nick Brown the Finance Director suggested the seemingly rapid and magical technique must be a fraud! Nick became a superb supporter once he recognised the unique approach to saving time and enhancing the trust in numbers.
Testimonials
“There is no substitute for seeing Dashflow live”
Fund Manager, M&G Real Estate
“I have been building and reviewing CRE models for the last 2 decades and your product is the real deal”
Vice Chairman, Blackstone
Upgrade the business to intuitive Discounted Cash Flow appraisals.
Intellect Automation International Pty Ltd. All rights reserved. 2021