Business case
Our client was looking to invest in a loss-making manufacturer of electric buses and trucks in Canada. The target had an ambitious business plan, and our client required assistance to review the financial projections.
The target competed in two geographical markets (Canada and USA) and two business segments (buses and trucks). These markets and segments had very different dynamics: the truck segment is a larger market but less secure in terms of commercial development. The target also had a significant capex plan for the development of a second large manufacturing facility in the US.
We performed detailed due diligence on the financial forecast prepared by the target, including a review of the main market and financial assumptions presented in the BP model prepared by its financial advisers. We also aimed to identify key risks.