SCENARIO forecasting

When making important financial decisions, it is essential to understand how various scenarios could impact your business’s future. Whether you’re considering a major investment, contemplating an acquisition, or evaluating the effects of salary increases or pricing adjustments, having a clear forecast can guide you confidently forward.

The following are examples of forecasting questions that we can work with you to answer: Thinking of investing in a significant asset but are worried about the impact on future cash flows? Can you afford to finance an acquisition under various interest rate assumptions? How would raising prices impact earnings? What happens if you give yourself or employees a raise? Can you afford new lease terms or can you afford to expand into a new facility? Can ownership take a $1 million cash distribution out of the business without impacting working capital? What about a $1.5 million cash distribution, or a $2.0 million…?

We collaborate with business owners to determine the key financial inputs to prepare a financial forecast model. We can forecast your Balance Sheet, Income Statement, and Statement of Cash Flows under different scenarios. Once completed, we meet with you to discuss our findings and provide guidance for your next steps.

WE PREPARE forecasts FOR THE FOLLOWING PURPOSES:

  • Changes to Pricing Structure or Implementation of New Products

  • Changes to Cost Structure (new employees, new products, new lease, changes in terms with vendors, etc.)

  • Mergers and Acquisitions Due Diligence and Planning (sell and buy-side)

  • Quality of Earnings Analysis

  • Buy-Sell Agreement Impact and Analysis

  • Exit and Succession Planning

  • Debt Capitalization (impact of debt on cash flows)

  • Equity Capitalization and Dividend Cash Flow Forecasts

For general inquiries, please contact: jillian@outerpointadvisory.com