Pivotal Strategies' professionals have substantial experience in preparing detailed and accurate short-term and long-term financial forecasts. We prepare short-term weekly forecasts of cash flow and availability to assist our distressed clients with crisis and cash management. We also prepare longer term forecasts that include full income statements, balance sheets and cash flow that serve a number of purposes in assisting our clients.
Our forecasts are based on our clients’ realistic ability to achieve results. We begin by understanding a client's cost structure and behavior and the factors that drive revenues. From these we develop a set of assumptions that we test and validate. These are then incorporated into a comprehensive model to establish a baseline forecast of operating results, cash flow and balance sheets. We then reiterate the process to reflect the likely results of alternative manage-ment decisions and potential strategic and operational initiatives.
We have prepared hundreds of forecasts that have served a variety of purposes. In distressed situations they become a focal point in communicating and negotiating with lenders, suppliers and other critical constituents. Our forecasts have been used as a basis for forbearance agreements, capital and debt restructuring and securing DIP financing in bankruptcies. For our emerging business clients they have been the basis for establishing the type, amount and timing of growth capital infusions. They have been a major contributing factor in formulating valuations in acquisitions and divestitures and have given our clients' management teams critical insight on the ramifications, costs and benefits of strategic and operational initiatives, such as transitioning to global markets and/or sourcing.
In addition to preparing financial forecasts from the ground up, we have been engaged to review and validate forecasts prepared by others, typically as part of due diligence processes for acquisitions and capital financings.