Author: Taylor Giesler is a Certified Master Anaplanner and Director, Enterprise Performance Management at Alpha Alternatives.
The digital transformation of valuations is driven by several key trends that are reshaping the financial industry. Firms are increasingly adopting digital solutions to solve these problems, and many firms are choosing Anaplan as their platform of choice. Join me in exploring what is leading this transformation and why firms are choosing Anaplan to solve for their valuation needs.
- Integration of big data: Firms are turning to solutions that can integrate a wide range of data sources, including financial data, market data, industry benchmarks, and macroeconomic indicators. Deal teams are looking for a tool that can help them analyze these diverse datasets and provide them with a more comprehensive view of the factors influencing asset values. Currently, this is a very manual process, with the deal team's copying and pasting data into excel. Anaplan's robust integration options enable seamless data integration across various systems, and it is flexible enough to handle the different scales and complexities of data workflows of the data needed to perform valuations.
- Scenario analysis and sensitivity testing: Due to the uncertain environment, firms are also looking to leverage a tool that includes features for conducting scenario analysis and sensitivity testing, allowing deal teams to assess the impact of different assumptions on the valuation outcomes. Anaplan’s calculation engine is optimized for high-volume data, making it easy to run sensitivity analyses by adjusting key variables and observing the impact across different levels of aggregation. This allows firms to test a wide range of scenarios and get immediate feedback, supporting decision-making around risk and opportunity management.
- Open-ended fund reporting: There are also an increasing number of open-ended or evergreen structured funds, which has led to an increasing need for monthly, weekly or even daily valuations, with the ability to valuate for any exit date. The native and non-native version capability of Anaplan allows funds to not only perform these valuations but also compare them across user specified time scales and drill down into how and why the underlying drivers have changed over that period of time.
- Increased regulatory requirements: Automated report generation is also table stakes for any viable valuation solution. Due to increased oversight by regulators and a demand for transparency by investors, there is an increased need for an automated reporting system that can ensure compliance while also providing insightful data to stakeholders. Anaplan's management reporting can facilitate the preparation and compliance with SEC reporting standards, while also eliminating the time spent preparing reports for daily/weekly/monthly valuations.
The digital transformation of valuations is not just a trend but a necessity in today's rapidly evolving financial landscape. With increasing data demands, regulatory pressures, and the need for real-time insights, firms are embracing Anaplan for its powerful integration, analysis, and reporting capabilities. By automating complex workflows, supporting high-volume data analysis, and providing flexibility for diverse fund structures, Anaplan enables firms to achieve more accurate, transparent, and efficient valuations. As the industry continues to evolve, Anaplan remains at the forefront, empowering firms to navigate the complexities of valuation with confidence and agility.
