Question for y'all. A company I am researching has stated that a main source of their growth will be from strategic mergers and acquisitions. The company normally has 1-3 acquisitions per year and it is difficult to pull out organic growth from the growth driven by the acquisitions.
Clearly, an analysis of the balance sheet is in order with a focus on liquidity, solvency, and coverage ratios.
I guess my main question is: what is the best way to forecast revenue (and ultimately FCF) for this company when a major part of their growth is from unpredictable acquisitions? Do you suggest simply taking the 3 yr average revenue growth and forecasting that our a couple of years before assuming the company will reach a lower steady state of growth?
Submitted May 15, 2017 at 03:09PM by DaBears50 http://ift.tt/2pPKJTx
