Pacomarine Limited provides custom Excel applications to clients around the world. We also provide training and consultancy.
When I first started this business, I intended to develop and sell by licensing, a very sophisticated, flexible ship investment model. It would be the very best model for analyzing ship investments.
What I realized was that the more flexible and sophisticated a model, there is also an increased risk that the model becomes a “black box”. People investing millions of dollars in ships are not normally the type of people who are happy with “black boxes”. They like to see and understand what is going on. The same goes for their bankers.
The model itself - regardless of how good and user friendly - is not the ends. The desired end result is better decisions to maximize profits and minimize risk.
Successful finance professionals and dealmakers in the shipping industry are in my experience normally very creative people. Well-constructed models excite thought and facilitate creativity.
Analysis, creativity and modeling go hand in hand to solve and find solutions to complex problems. Shipping deals contain lots of uncertainty, and it is necessary to quantify and understand the risks. The rewards for successfully taking and managing risk in shipping can be high. That is why modeling is a valuable tool.
In my experience financial models are most effective when they clearly address the problem the decision maker needs to solve in a meaningful and reliable way reflecting the dynamics of the real world problem.
I believe this is best achieved when the decision maker is invested in:
- Building the model
- Using the model
To facilitate this I have decided to provide:
- This website and its content available for free on the worldwide web. I am very happy to reply to questions you send me by e-mail. I learn a lot from answering questions.
- Suggestions for useful books on financial analysis and modeling. I have provided a link to Amazon.co.uk for easy ordering. Go to the tab “Books” for a list of suggested reading. (Amazon might pay me a commission if you order via the link on this webiste.)
- Training and guidance at public seminars or closed company sessions with follow up and guidance on specific problems.
- Templates of model solutions to help you save time and give you ideas about how things can be done.
- Consulting to provide modeling support for constructing and validating models for specific transactions.