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Leveraging Company Forecasting for M&A Validation

By ITR Economics Representative on November, 6 2020

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ITR Economics Representative

The US industrial economy is approaching a low point in the business cycle. From a decision-making perspective, this represents a critical juncture, as the business cycle low is often an excellent opportunity for investing for the future growth of your business. As more and more signals of recovery emerge, ITR Economics has been advising clients to consider various capital investment opportunities, including potential acquisitions, as part of their long-term strategy. But in today’s highly uncertain economic environment, how can business leaders know if this is the ideal time to buy (or sell), and what price represents a fair valuation of a potential acquisition target?

The Power of Company Forecasting

Using our extensive knowledge of the business cycle and proprietary forecasting methodology, ITR Economics can predict a company’s future revenue stream with a high level of accuracy, providing exceptional decision-influencing insights. By analyzing company revenue history and its relationship to various leading indicators, along with other meaningful secondary data, ITR can provide valuable advice on the timing and price of a potential acquisition. Furthermore, we can offer support and answer any questions about the forecast via a consultation with a member of our economics team.

How Does It Work?

We will conduct a leading indicator analysis of the potential acquisition and generate a three-year forecast of company revenues, unit volume shipments, or any other metric pertinent to the future performance of the business. The program includes the following features:

  • Three-year (12-quarter) company revenue forecast
  • The forecast is delivered as a table and a set of charts showing quarterly projections for both the Rate-of-Change and actual dollar values
  • A discussion of current macroeconomic developments and answers to your specific questions
  • Counsel for understanding the underlying industry-specific trends
  • Report-customization to meet your unique needs

If you haven’t yet considered leveraging the upcoming business cycle low point to position your firm for future growth, it’s not too late. If your strategy includes potential M&A activity, as we think it should, we are here to support you in your endeavors. For help in identifying the right time and valuation for a potential acquisition, please reach out to us; we’d be glad to assist.


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