Case study

Financial Modeling and Valuation for the Identified Target in the Industrial Sector

Financial modeling

Business Situation

  • The client was looking to invest in a company active in the industrial sector.
  • The requirement was to build out a detailed financial model that covers different scenarios and determine a value using different valuation methodologies.
  • Funds invested in the identified company were to be used for its expansion in an unexplored vertical.

SGA Support

  • Created a dynamic five-year quarterly financial model.
  • Delivered projections based on identified key revenue and cost drivers of the company and created asset and loan schedules.
  • Analyzed the growth path of the company by studying the geographic distribution of products.
  • Performed due diligence for the market, which was progressing at 6% CAGR, primarily driven by growth in end markets, such as automotive, metals, and mining.
  • Ran different probability cases, and cost and return scenarios.
  • Provided football field analysis, summarizing a fair value range based on a valuation methodologies including DCF, trading, and transaction comparables, in the form of output.

We bring comprehensive data driven insights to everyone, everywhere

In depth-analysis with simple solutions