Case Study Overview
- The industry: The client operates in the pipeline infrastructure solutions industry, specialising in the design, supply, and installation of pipeline systems.
- Turnover: The annual revenue turnover for the client is \$50 million.
- Ownership Structure: The company is privately owned.
- Project and Referral Trigger: The initial trigger for the project was the client's need to support their five-year growth strategy. They sought to develop a comprehensive financial forecast to validate their strategy and plan out financing requirements. The referral to the consulting company came through a recommendation from a business partner who had previously worked with the consulting firm on a similar project.
Our Approach
To deliver the project, we followed these key steps:
- Strategy Planning Facilitation: We facilitated a strategy planning process with the client's leadership team to outline their five-year growth strategy.
- Data Collection and Analysis: We gathered and analyzed historical financial data, market trends, and industry benchmarks to inform the financial forecast.
- Financial Modelling: We developed a detailed financial forecast for the next five years, including profit and loss statements, cash flow projections, and balance sheets.
- Scenario Analysis: We conducted scenario analysis to evaluate different growth scenarios and their potential impact on the financial forecast.
- Stakeholder Engagement: We engaged with department leads to ensure they took ownership of the financial assumptions and aligned them with the overall business goals.
Project Outcomes
The project resulted in several key outcomes:
- Validated Growth Strategy: The financial modelling validated the client's growth strategy, providing confidence to move forward with their plans.
- Investment and Distribution Model: The analysis identified the acceleration of the national distribution model as critical to achieving investment and business objectives.
- Operational Efficiency: The project highlighted the importance of focusing on the right profile of projects to ensure financial success and improve gross margins.
Key Questions to Get the Conversation Started
- What are your long-term growth goals, and how do you plan to achieve them?
- How prepared are your financial records and reporting systems for potential investor scrutiny?
- Have you considered different growth scenarios and their potential impact on your financial projections?
By focusing on these areas, partners can help their clients navigate the complexities of strategic financial forecasting, ultimately driving business success and enhancing enterprise value.
Please book an appointment if you would like to discuss your client's consulting needs further.
