AMA: Revenue Build Up for WSO users

Associate 2 in IB - Ind

Hi all, I thought I'd give back to WSO by sharing with aspiring monkeys a few examples of how to do a granular revenue build up for some obscure industries / companies. This may be helpful for PE and Ib interviews. Without further Ado:

Biz 1: construction equip rental provider

of days used * rent / price / day

of days used = total number of pieces in stock * avg number of days rented / construction project / piece * avg number of construction projects / yr

Biz 2: national chain with 10 locations providing outsourced services

of stores * revenue / store

Rev/ store = # of sales reps * revenue / sales rep
Revenue / sales rep = # of hours billed * hourly billing rate

Biz 3: digital media co providing lead generation services

of customers (don't forget churn) * avg number of campaign / customer / yr * revenue / campaign

Revenue / campaign = # of pages served * avg click through rate * cost / click

Biz 4: co that provides complex networking solutions to businesses (communications)

units of manufactured * % sold * price / unit

of units manufactured = capacity * utilization

of units sold = # of customers * avg order size (units) * order frequency

Biz 5: outdoor advertising / digital billboards

Total # of billboards * # of times billboards rented / yr * # of days billboard rented / campaign * price of renting billboard / day

Hope this is somewhat helpful. Pls let me know if you have questions.

Comments (2)

  • Prospect in IB-M&A
Oct 25, 2019

What the hell is this? Does this make sense to someone else on WSO?

  • Prospect in IB-M&A
Oct 25, 2019
Comment