We provide two core capabilities to rapidly identify and quantify risks and opportunities.
We develop market insights and identify the relative strength of target investments in those markets.
Market Structure, Dynamics and Strategy
Funds and corporates considering direct investment benefit from an understanding of the market. This may include defining and sizing a market, gaining insight into the market structure and participants and their relative capabilities as well as understanding other forces at play, for example, technology changes or regulatory shifts.
However, market information is rarely accessible or presented in a manner that facilitates informed debate and decisions.
Temple works with clients to define the market and undertake prioritised and highly focused analysis to inform the most important questions. In some cases this extends to identifying the most compelling elements of a market or market entry strategies. We have deep experience in efficiently gaining insights into the most opaque markets and our end products are fit-for-purpose for the investment or investment thesis under consideration.
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Investment Thesis Development and Review
Funds or corporate boards and management may wish to develop or review an investment thesis. This may relate to new markets or proposals ready seeking an investment decision.
For those wishing to develop an investment thesis, for example entering a new market by acquiring a market participant, we work with clients to identify and quantify the critical value drivers of the investment. This then informs the work programme to de-risk the investment.
For those seeking an independent review of a proposed investment, we identify the critical value drivers and then undertake independent research to cross-check the validity of the assumptions including identifying areas of high uncertainty. These reviews are typically independent but done in collaboration with the management team.
This work leads to higher quality investment proposals by better understanding the value drivers and gaining confidence in the underlying assumptions.
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Investment Valuation and Deal Structure Modelling
We develop financial models for investors who do not have in-house financial modelling capability or capacity.
Our valuation models are designed to link with the critical value drivers of the market and business, sometimes described as ‘digital twins’.
Deal structure models support negotiations for joint-ventures or alliances with more complex setup and return profiles.
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Preliminary Commercial Due Diligence
Investors often wish to better understand the target company and the market in which it operates prior to providing an initial term sheet.
Preliminary commercial due diligence typically focuses on the elements of a market, and relative strengths, of a particular target company in that market. It therefore combines market and target assessments.
For these investors, Temple provides a structured approach to preliminary commercial due diligence that assists the investor in making an informed decision with confidence. This typically involves identifying an initial list of priority issues to explore within the market or target investment and providing rapid-turnaround (typically hours or days) feedback on findings to fine tune further work.
Findings are generally shared through draft working documents to inform discussions internally and negotiations with counter-parties in the earlier stages of the development of the investment thesis.
This work sometimes migrates to full commercial due diligence but allows investors to identify the critical elements of an investment before committing to the full cost of a robust due diligence process.
It is no uncommon for preliminary commercial due diligence to create insights that materially change the shape of, or appetite for, the investment thesis.
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Full CDD
Investors often require independent and well documented advice on the target investment prior to finalisation of a transaction.
For these investors, Temple provides a structured approach to commercial due diligence that will ultimately assist the investor in making an informed decision with confidence. We provide this support for both controlled auction and negotiated sale transactions. We will typically explore the company’s strategy in light of competitor, regulatory, supplier and customers trends as well as gaining an understanding of the company’s operations.
We are happy to manage the commercial due diligence process, including managing and integrating the work of technical experts where needed, but do not conduct the due diligence assessments typically performed by accountants or lawyers.
This approach benefits investors by providing an independent view on the commercial strategy and operations of a target and corresponding opportunities and risks.
CONNECT WITH OUR TEAM TODAY READ OUR CASE STUDIESWe identify and quantify opportunities for improved return on capital and reduced carbon emissions for current investments.
Cashflow Focus
In many cases operational efforts can yield significant and rapid improvements to cashflows or invested capital.
Temple has deep experience in identifying value that can rapidly translate to cash and has provided this service to clients around the globe. We typically do this by working closely with management, staff, customers and suppliers to identify and prioritise opportunities for fixed cost removal, cost productivity, capital productivity and top line enhancement.
This benefits our clients by allowing them to rapidly assess the potential value and realisation timing of this value e.g. days, weeks, months while also forming the basis of a workplan.
In some cases the identification of value alone can enhance the value of a business being prepared for sale.
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Climate Mitigation and Analytics
Temple has a growing focus on sustainability and climate analytics and we are dedicated to guiding our clients through the complexities of carbon emissions mitigation and environmental stewardship.
We assist clients to understand their baseline emissions, develop mitigation targets and pragmatic emissions reduction plans and undertake scenario analysis to better understand the transition, physical and other risks and opportunities associated with climate change.
Central to this capability is deep experience in the identification of business value drivers and quantification of climate change risks and opportunities in a manner that flows through to climate-financial impacts. We do this by providing quantified inputs to your team’s financial models and can also deliver full standalone financial analysis (P&L, cashflows and balance sheet) and independent valuation modelling. This forms a bridge between climate science, scenarios and firm-level economics.
We have also supported litigation by providing expertise in climate analytics.
Our pro-bono work is focused on national climate reductions and includes advocacy, litigation, lobbying and development of achievable national solutions. To see more visit www.1point.org.nz.
CONNECT WITH OUR TEAM TODAY READ OUR CASE STUDIESWhat our clients say
Temple’s operating model was very useful for us. The team leader brought in other team members on an as-needed basis… I felt we got serious bang for buck."
David Skilling,
CEO, The New Zealand Institute
Temple stick to the facts and the science behind the case, without any smoke and mirrors."
Matt Todd
Chief Executive Officer, Eastland Group
Temple gave us focus. They also left us with a decision making framework to use when considering future opportunities."
Dr. John Langley
CEO, Cognition Education
Temple’s style suits ours. Paul's analysis is in-depth, to the point and insightful. His method also forces us to all have an opinion. Temple adds another layer of analytical confidence to our decision making."
Managing Director,
Private Equity firm
Contact us to see how we can help you make better informed decisions
