Financial and strategic analysis of Twintec Saudi Arabia

The objective of the study is to assess the financial viability of Twintec - a European company operating in the premium construction sector and willing to expand its activity into the Middle East market- by forecasting quantitatively and qualitatively its operational and commercial activity for the next five years (2014-2018) on the Saudi Arabian market. We begin by analysing the macroeconomic environment in which Twintec Saudi-Arabia will operate and state the most effective strategy and marketing approach. On the basis of the market analysis, we forecast the volume of sales for the next five years and the resulting costs from those. We then construct predictions for different financial statements and we analyse them quantitatively and qualitatively. After that we compute the operating cash flows generated by the activity of the company, and we take these numbers as our basis for assessing the viability of the project by using the NPV and IRR criteria. Last but not least, we perform a sensitivity analysis to evaluate the dependence of the profitability of the plan on the fluctuation of some of the main forecasts and assumptions formulated.