Automated Factory Start-up

CLIENT: Factory Hardware & Software Company

A new company in Canada whose focus is on building automated factories for construction and real estate development clients approached Sapling to develop a model they could use to forecast future cash flows and performance. The company currently had limited financial budgeting and forecasting models in place, and therefore Sapling worked closely with the company management to develop a model that would be flexible enough to capture a wide range of scenarios around their expected operations, while accurately capturing the business.

3 Key Insights:

We developed a financial operating model for the company, complete with detailed assumptions on revenues, COGS, and key expense drivers. The model captured both the hardware and software sales portion of their operations, as well as allowed for quarterly inputs on 10 potential factory types

The model also had scenarios in place for showcasing cash requirements and expected performance under base, low, and high cases, given the company was in their early stages of growth

With the company having one pilot operation in place already, Sapling developed separate revenue and cost drivers to showcase the performance of the existing pilot factory in addition to forecasting the other expected factories

EXAMPLE: Revenue by Factory Type

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