Revenue Growth in LBO?
Management's projections of revenue for the forecast years seem way too high (although the company may just be doing well in that sector), but it seems like based on comparables, companies are tapering off YoY (vs. YoY increase management is projecting) to a single digit growth by year 5.
Is there a best way to project out revenue in this case? Getting confused what is the best growth rate to really use here as using similar growth rates as comps will affect my exit multiple & cash flow, but I also feel that this company is a bit unique in its own industry...how do I back up my assumptions here best?
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