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  • Essay / Colliers Case Study - 1218

    The key theme of their cash flow analysis was a detailed analysis of their revenue flows, which has broad implications for Colliers to achieve its investment objectives. The distribution of the supply of auxiliary and main rooms is the relevant example and guides their analysis in terms of occupancy rate, auxiliary services per room, rooms per night sold. These metrics allow management to analyze what are the key areas that make up revenue and, through the value-add process, focus efforts to boost particular areas of the business to maximize the owner's return on investment. . This lends itself to the concept of splitting returns to match investors' goals. Additionally, Colliers can determine which revenue streams are sensitive to its bottom line, Colliers can then perform sensitivity analysis to really hone in and present risky cash flows to managers and investors. A prudent suggestion would be to discount different revenue sources based on risk-adjusted rates. The analysis facilitates a healthy analysis of risk versus return, of the opportunity for future profits with the risk that those profits may not materialize. This is why an analysis of their income structure is so important to improve the equity of outcomes and strengthen