Case Study:
Due Diligence Forecasting

Client

Private equity group

Situation

Company owns an injection molder and is looking to purchase another molding facility. The to-be purchased molder has provided the PE group with a revenue forecast lacking in detail/supporting information.

HRI Role

  • Collect historic sales data by part, map automotive parts by respective programs and sales forecast/quote activity

  • Refine automotive parts map and future work to define forecasts - in cases of ending programs, identify incumbent program and understand likelihood of award

  • For non-automotive parts, capture industry level volume trends to forecast future behavior

  • Create a detailed explanation of forecast methodology and assumptions, overall annual and monthly forecasts, and key takeaways

  • Repeat collection process for PE current owned plant to mimic and match the forecast approach of the potential-for-purchase plant

  • Deliver combined data file for the two plants; trained team on forecasting file for easy updating and adjustments

 Results

  • Delivered ability to forecast future revenues (annual and monthly) by plant

  • Better determine accuracy of plant revenue goals against what industry trends and volumes dictated