Our analysis of Cygnus, an aircraft parts manufacturing business, includes the following:
1. A forecast including elements such as IRR, WACC, FCFs and NPVs that will allow the reader to understand the barriers and risk involved in the market.
2. A “failure forecast” to offer a diverse view of possible market situations. This is an effort to balance part 1 where we give a scenario that has no negative aspect. This part in particular may be useful for those who might loan money to this kind of business, considering the percentage the bank may receive as part of the bankruptcy.
3. An honest outlook for how the market could react to a business entering the market to give any potential entrepreneurs and potential buyers of this type of business the understanding needed to make an educated decision. This information is a gathering of probabilities and proportions to correlate the net present value in conjunction with the initial cost of the business.