Hi all,
I have been making a 3 statement model. I recently came across an issue:
The company divides revenues into 4 business lines but reports revenue from acquisitions as a single item. Now when I try to project growth for next year or so I am not sure how to allocate that acquired growth into the company's different business lines.
I was initially thinking of treating it as a 5th business line but the problem there is that if I wont be able to see revenue breakdown by division in the projected years.Any ideas on how to deal with this?
You could pull out the M&A data of the company from Thomson Reuters or equivalent, and find the acquisitions impact through different business lines.
If this is too much, you could also use the overall acquisitions impact % for each segment and leave a comment explaining. Did the same with FX impact.
Mollitia modi minus veritatis quia voluptatem qui. Expedita adipisci et aut eveniet sint vel aut. Commodi consectetur beatae voluptas sit qui qui autem. Accusamus assumenda qui repellendus quae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...