Incorporating Levers into Financial Model
1. Is the industry norm to just build the lever into the model with what your assumption is of realistically what, eg days sales outstanding will be in the forecasted periods if they choose to acquire? Or, take a more passive approach and assume no changes to the company taken other than what management would otherwise do?
2. Thoughts on having a worksheet outlining all the levers in the model, which can be toggled on/off. E.g., the model including two values for days sales outstanding in each forecast period, and the model can switch between the two.
DSO with lever: 45, 43, 40, 40, 40
DSO w/o lever: 45, 45, 45, 45, 45
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