You're an investment banker engaged by Porcupine Tree Company regarding their efforts to complete a significant M&A transaction. One of the things you're evaluating is the value of the company Porcupine Tree Company wishes to acquire. At issue is a measure of uncertainty in your mind regarding the company's projection for 2020; especially the revenue projection. The target company is a global concern, and the foreign currencies in which it transacts its overseas business did strengthen against the dollar. However, your quick math suggests that doesn't explain the total jump in revenues. The financial history and near term projections for the target company are as set out below. These projections were included in a pitch book you received from the target company's investment banker. Much to your surprise, the pitch book does not explain the sudden jump in revenues or any other figures for the projection of 2020. 2016 Revenues (000s) $500,000 2017 $505,000 2018 $545,000 2019 $535,000 2020P $700,000 Percent Growth 1.0% 7.9% (1.8%) 30.1% EBITDA $50,000 $49,000 54,000 $50,000 $85,000 Depreciation $10,000 $10,500 10,700 $15,000 $20,000 EBIT $40,000 $38,500 $43,300 $35,000 $65,000 Free Cash Flow $30,000 $28,000 $15,000 $5,000 $50,000 You've set up a telephone call with the investment banker to review the data, including the 2020 projections. 1. What questions will you ask with respect to the four year historical trend and the 2020 projection? 2. What additional information would you likely be requesting to help understand the trends at play?