Modelling based on CIM

Hi guys,

Correct me if I am wrong, but if given a CIM in a LBO modelling test, I would do the following:

Model a CIM case and a downside case.

-** CIM case:** take everything from the CIM, e.g. sales, margin development, NWC development, D&A, Capex etc.
- Downside case: Here I would put my own assumptions in; own sales and margin dev, own NWC, own D&A etc. Maybe leaving Capex the same.

I have seen people mixing both; or putting one case in with the CIM sales and margin assumptions and then their own NWC assumptions based on e.g. constant DSO, DIO, DPO.

Please help!

 

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