Interview case question - forecasting
Good afternoon,
I have an interview for a small ER firm next week, and in advance they have sent along a test to see how I would forecast a P&L for the next 2 years. The test consists of a historical P&L for the past 3 years (very high level, no unit data, and really only 6 expense categories) and capex. No BS, CF, etc, or even a company description - the only thing I can see is that its high growth, based on revenue.
Given that I have very little to forecast off of (no units, no idea the breadth of the capex, no assumptions) - what do you think is the right approach? Should I build a model, note the data I would look for as a phase 2, and steady state the forecast? Or should I go crazy and build a wild sensitivity analysis and say if this, this, if that, that, and so on? I feel like they are looking for evidence on how I structure something like this - not a technical forecast (they can't be with so little to work off of?).
Anyone experience this before? Thank you in advance for the help.
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