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