Financial Projections for Selling a Business: Guide
Financial projections for selling a business: why buyers ask for a forecast, what a sale-ready model contains, how buyers test it and the mistakes to avoid.
Driver-Based Forecasting for a Business Sale
Driver-based forecasting builds a sale projection from units, price, utilization and retention. See driver trees for a manufacturer and a services firm.
Base, Upside and Downside Cases in Sale Projections
Scenario analysis for a sale: what moves between base, upside and downside cases, how to label assumptions and how lenders and buyers use the downside.
Management Case vs Buyer Case in a Business Sale
How a buyer turns a management case into its own case: the adjustments it makes, a reconciliation of the gap, and how sellers defend assumptions with evidence.
Revenue Forecasting Methods for a Business Sale
How to forecast revenue for a sale: backlog conversion, pipeline weighting, recurring revenue and churn, and cohorts, with the evidence buyers accept.
Sale Forecast: Margins, Capex and Working Capital
How to forecast gross margin, operating expenses, capital spending and working capital in a sale model so a buyer can follow the path from EBITDA to free cash flow.
How Buyers Test Financial Projections in Diligence
How buyers evaluate financial projections in a sale: the bridge from LTM, forecast accuracy, backlog and pipeline checks, customer calls, capacity and sensitivities.
Hockey Stick Projections: Sale Forecast Mistakes
The forecast mistakes that cost sellers credibility, from hockey-stick growth to margins with no cause, with what a buyer concludes from each and the fix.
KPIs Buyers Ask For in Due Diligence, by Model
The KPIs buyers request in diligence for manufacturers, distributors, services, recurring revenue and consumer brands, with definitions and reporting rules.