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.
