A Practical Guide to the NAMA Business Plan Version 2

Authors: Michael Flynn and Ferga Kane

NAMA was established in December 2009 to acquire property development loans from Irish banks to improve the availability of credit in the Irish economy. From the beginning, important issues for NAMA initially included:

understanding the loans and assets transferring;
valuing the underlying assets in an illiquid market; and
determining the best route forward to get the debt repaid by the borrower.

The development of a detailed business plan by the borrower was a key element in addressing these. In advance of the first loans transferring to NAMA, Business Plan Version 1 was published, a template document and datapack for use by transferring borrowers in completing a business plan to submit to NAMA.

Following the transfer of Tranches 1 & 2 of loans to NAMA (30 borrowers, €27 billion par debt), NAMA identified the requirement for a more property-focused business plan template, providing standard formats and reducing complexity. The agency also sought to remove the onus from borrowers to perform complex financial analysis. For this reason, NAMA engaged Deloitte to assist it with the development of a new template, Business Plan Version 2, which includes the NAMA Business Plan Version 2 template document, NAMA Information Pack and NAMA Cashflow Model. It is expected that all borrowers will utilise Business Plan Version 2 from now on.

With insights and practical examples from the team who developed the new template, a new book published by Chartered Accountants Ireland and written by Michael Flynn and Ferga Kane of Deloitte, provides a guide to preparing and completing a business plan for NAMA using the Business Plan Version 2 template. The book contains detailed instructions and examples to assist in the completion of the NAMA Information Pack and the NAMA Cashflow Model and provides an overview of the key assumptions contained in both financial models.

Reproducing and annotating excerpts from the NAMA spreadsheets and documents, features of this new guide include:

Overview of Business Plan Version 1 and Business Plan Version 2 structures and the differences between them
Overview of the NAMA Information Pack, and detailed instructions and helpful tips for its accurate completion
Explanation of and instructions for the accurate completion of the NAMA Cashflow Model inputs as well as how to use the outputs in preparing the written business plan
Detailed discussion of the NAMA Business Plan template document, which includes highlighting of key information requirements throughout the document.

Price: €80.00

ISBN: 9781907214912

Paperback

The Authors:

Michael Flynn, FCA, is a Corporate Finance Partner at Deloitte in Ireland and leads the Irish Debt Advisory and Specialised Finance teams. Michael led a Deloitte team on secondment in NAMA Portfolio Management during the transfer period for Tranche 1 and 2 borrowers. Subsequently, he was the partner in charge of the Deloitte team working for NAMA on the development of the new NAMA Business Plan template, etc. He also provides business plan and debt advisory services to NAMA borrowers and potential investors.

Ferga Kane, ACA, is a Director with Deloitte Corporate Finance. She advises the public, private and banking sectors on government and infrastructure (including PPP), project finance and public sector related transactions. Ferga recently led the Deloitte team who assisted NAMA with the development of the NAMA Business Plan Version 2. Ferga also assists on the provision of advice to NAMA and NAMA borrowers in relation to business plans and debt advisory services.

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