Describe a scenario where you would use a bottoms-up approach to forecast revenue, and then walk me through how you would integrate that forecast into a top-down company-wide revenue forecast.
A core FP&A interview question — asked in analyst and associate interviews across IB, PE, and the Big 4.
THE SHORT ANSWER
I would use a bottoms-up approach to forecast revenue for a new product launch. This involves estimating sales based on historical data and market research. I would then integrate this forecast into a top-down company-wide revenue forecast by reconciling it with high-level revenue targets and adjusting for any discrepancies.
WHAT INTERVIEWERS LISTEN FOR
- ✓Bottoms-up approach
- ✓Top-down company-wide revenue forecast
- ✓Reconciling forecasts
COMMON MISTAKES
- ✗Lack of understanding of forecasting approaches
- ✗Inability to integrate forecasts
Reading isn't the same as answering under pressure.
Interviewers don't hand you the model answer — you deliver yours on a clock. Practice this and 1,000+ questions with AI feedback on every answer.
RELATED QUESTIONS