Industrials Case Study Help

Here is what I would do:

• Revenue Assumptions / COGS Assumptions
  • If they give you a CIM or have clearly laid out several different operating divisions, I would make sure you forecast each division as a separate entity. Take in to account the faster growing end markets and apply a higher growth to those segments. Units that are not not key focuses can be grown at Inflation. 
  • COGS can be left at historical averages or have slight margin improvement. But I would show that there are different division with different margins if applicable. 
• Capex
  • I don't think anyone will ding you for using % of Revenue, but you do need to think if it is an asset heavy business model and make sure there Capex is accurately reflected. If you have time, a PPE schedule can be good, but if you build a busted PPE schedule, that can ding you more. 
• Debt Schedules
  • I would not put a ton of effort into this portion. You are probably going to be able to hold debt same as historical levels. 
• Tips:
  • I would make sure everything is clean and flows nicely. I would also not down play the PPT. Make sure the investment highlights are well thought out. You can even cater a few investment considerations to platform vs. add-on depending on size of the investment. 

Happy to answer any additional questions.