Financial Mechanics builds financial models used in forecasting business performance, evaluating projects, securing funding, and making acquisitions. Our models and modelling style are applicable to a wide variety of clients: lenders, advisors, investors, operators of businesses, and government organizations working in the energy, transport, property, and public infrastructure sectors. Our clients come from a cross section of commercial and financial disciplines, for example, project finance, mergers and acquisitions, private equity, real estate, and P3s / public private partnerships.
Our approach to helping clients is hands-on and practical. Our immediate objective is providing clients with a financial model they can use when we are supporting them and after we have gone. Once this objective is secured, we continue the support by providing analytical services and training to assist our clients in both running and adapting the model over time as requirements evolve.
– Business Analysis Lifecycle, by Professor Thomas Grossman
The FAST modelling standard was pioneered by the founder of Financial Mechanics, John Richter, and Morten Siersted over 15 years ago and is now used by thousands of modellers across the globe as a ’shared language’ for modelling. The Standard advocates a philosophy of good financial model design rules founded on the acronym FAST: flexible, appropriate, structured, and transparent. It advocates transparent model structure and clear, crisp modelling style.
The Standard has been developed from the experience of industry practitioners who have learned simple techniques to replace overly-clever ‘good ideas’ that proved bad in practice over time. It documents a skilled craft that is functional within the realities of the business environment.
As a minimum objective, models must be free of fundamental omissions and logical errors, and this outcome must be achieved under short lead times. However, a good model must achieve more than this minimum standard. It must be easily used and reviewed by others and readily adaptable as circumstances change.
– Robert-Jan Bakker, Deloitte
Model design and modelling techniques must allow models to be adapted easily and quickly when new information becomes available
Models must reflect key business assumptions directly and faithfully without being over-built or cluttered with unnecessary detail
Rigorous consistency in layout and organization is essential to retain a model’s logical integrity over time, particularly as a model’s author may change
Our modelling approach is founded on simple, clear calculations that can be understood by other modellers and non-modellers alike.