Case Study

Financial forecast and incentive model

17.03.2022

Client: A family-owned, leading stormwater specialist. Partnering with councils, engineers and contractors to build risk-free, clean water solutions for the future.

Project Trigger

International growth ambitions

Our Scope

  • Build and provide a five-year financial model, including potential new markets and acquisitions in the pipeline.  
  • Introduce flexible ‘input fields’ that allow the senior management team to assess different financial scenarios and options.

Project Outcomes

  • Revenue and profitability forecast by geography.
  • Operational expenses, with the option to use entity set-up costs and/ or acquisition costs.
  • Estimated economic value per entity over time.
  • Income and equity value by shareholders over time.
  • Cash/ funding requirement for set-up/ acquiring new entities across the different geographies.

Our Value

  • Our ability to introduce realistic market data to create a dynamic financial model that supported revenue increase/ decreases, delivering accurate profitability options.
  • Introducing of flexible, fit-for-purpose data-input fields that allowed the client to assess different financial scenarios.
  • Creating a three-way forecast model that provided the various financial growth opportunities and financial value. 

Top 3 Tips

Clients that have international growth ambitions should:

  • Assess what financial scenarios the client is considering, allowing a fit-for-purpose financial model.
  • Build a financial prototype, before introducing a financial forecast solution, ensuring that all dynamic data input/ output fields are assessed, reviewed and confirmed.
  • Ensure there is a full & complete handover for management team to use model to enable optimal decision-making.