Introduction to:
Hyperion
Strategic
Finance and
Strategic
Finance
Consulting
SCOOP Session
September 30, 2004
History

Hyperion Strategic Finance, formerly Alcar, was founded in 1979 by two
Professors from Northwestern University’s Kellogg School of Management, Al
Rappaport and Carl Noble Jr.

Al Rappaport authored Creating Shareholder Value and was instrumental in
the advent of value based management

Strategic Finance was acquired by Hyperion in April of 2003

Hyperion is one of the global leaders in Business Performance Management
Software with 91 of the Fortune 100 largest companies using our software for
their business needs

Hyperion, with 2,600 employees, was named as one of the Fortune 100 Best
Companies to Work for in 2004.
What is Hyperion Strategic Finance?
 Software package similar to Excel that allows users to make key
strategic financial decisions, such as:
 Should we divest an underperforming business?
 Should we acquire one or more of our competitors?
 Should we invest in project A or project B?
 Should we buyback shares or issue dividends with the excess
cash we expect to generate?
 Consultants at HSF utilize their knowledge of finance to build
financial models for clients that provide insight to executives on
key strategic issues such as those listed above.
Consulting Projects
•
Projects last between one and three months (2 months on
average)
•
Discuss and understand client’s specific industry and business
needs
•
Discuss and understand merger and acquisition analysis, longterm strategic planning, and other financial analysis
•
Build financial models using HSF software to meet client needs
- Valuation Metrics
- Merger and Acquisition Analysis
- Capital Structure Issues, etc.
HSF Clients
 Corporate - Strategic Modeling

Allows running of different alternatives, strategies or scenarios and
view impact on full financials (I/S, B/S, C/F, …) to evaluate important
business decisions

Provides Senior Management with a tool to evaluate profitability and
economic value of various business units, capital projects, and
potential targets for acquisition.
 Banks - Credit and Risk Management

Allows bankers to evaluate borrower’s credit worthiness utilizing full
financials (I/S, B/S, C/F, …)

Allows Banks to reduce overall lending risk
‘Typical’ HSF Corporate Project - Timing
 Overall time frame – 1 to 3 months
 Design Phase
 Work with client to identify needs and conceptualize solutions
 Build Phase
 Model building and linking to source systems
 Testing Phase
 Roll-out Phase
 Client Training
 On site assistance during critical business moments:
 M&A transactions
 Divestiture modeling
 Strategic Plan Consolidation
‘Typical’ HSF Project - Staffing
 Hyperion:
 Project manager
 Consultant
 Client:
 Owner is usually CFO, VP of Finance or Planning, or Treasurer
 Main contact or client lead is usually Director or Manager in above
areas
 Remainder of team will be financial analysts from each area
Key Benefits of working for HSF
•
Valuable industry experience
•
Exposure to all key finance functions of a major company
•
Senior management client contact
•
Acquire strong technical and interpersonal skills
•
Extensive travel opportunities including international
HSF Skill Set
 Technical Skills:
 Solid accounting and financial statement knowledge, especially
an understanding of how P&L and B/S interact to generate Cash
Flow statement.
 In-depth understanding of the Cash Flow statement -- Cash vs.
non-cash flows, M&A activity, etc.
 Valuation theory and practical application of DCF, EVA, and
Multiple approaches.
 Knowledge of M&A accounting is helpful.
 Financial modeling and forecasting experience.
 Knowledge of Credit analysis and Credit review process in
Financial Institutions.
HSF Skill Set
 Soft Skills:
 Strong analytical capabilities
 Excellent written and oral presentation skills
 Ability to work independently and execute projects with limited
supervision
 Attention to detail is a must
 Ability to conceptualize complex financial topics
 Ability to build close relationships with clients to help drive new
business for the company