In order to project the financials, you will need to determine the growth drivers for the balance sheet and profit and loss account. Growth drivers are those parameters that best capture the movement in individual items over the years. The nature of the item and your expertise will determine which parameter you select as an appropriate growth driver. An example of a growth driver for turnover is the year-on-year growth or inflation.
You should know that the balance sheet growth drivers are not as straightforward as with the profit and loss. We will cover this in detail in Chapter 5, Understanding the Project and Building Assumptions.
Once the growth drivers have been calculated, you will then need to refer to your notes on the discussions with the management and, in particular, the section heads for their suggestions on...
