Once you have a list of potential business candidates, what is the next step to take...

Once you have a list of potential business candidates, what is the next step to take when considering buying a business and what are the questions to ask?

Solutions

Expert Solution

When a businessman looks to buy another business, a number of factors must be considered before making the final buying decisions as the money involved is quite high and the associated risk is also paramount.

This process should start by identifying the various probable candidates of buying. Once a pool of probable businesses which could be purchased is made, then the next step of the buying process should be to research and investigate the company which has to be bought. The businessman must try to analyze the financial condition of the business. Apart from this, all the relevant information about the operations of the company must be collected. This will really help in finding and analyzing the future performance of the business under consideration. If the business is having the good financial condition and a string operational ground, it could be a nice buying for the businessman.

The main questions which can be asked are as below:-

What are the reasons for selling the business?

What are the location value and financial situation of the business under consideration?

How this purchase will be financed by the buying organization

Which mode of financing will be used i.e. self-financing, or lending from financial institutions, angel investors or venture capital

What will be the terms and conditions of sales agreement?

How long will it take to get the complete charge of the business?

keosha answered 1 year ago

Next > < Previous

Related Solutions

Construction - Masonry Once you have reached your elevation grade, what would be the next step...

Construction - Masonry Once you have reached your elevation grade, what would be the next step to fill the cavities and what are the benefits of filling the cavities? There is more than one method that can be used to accomplish this goal.

What are the next steps once you have an isolated colony to determine the bacteria growing...

What are the next steps once you have an isolated colony to determine the bacteria growing in that colony? (These are some of the I’s – selective media what might you suggest?)

You have been asked by the CEO to interview potential candidates to manage the subject three...

You have been asked by the CEO to interview potential candidates to manage the subject three projects. discuss at least 5 skills that would be essential for the project managers to have in order to ensure delivery of the projects on time, within cost and within desired quality

1. Once a firm knows that foreign demand exists, its next step is to a. use...

1. Once a firm knows that foreign demand exists, its next step is to a. use foreign direct investment. b. negotiate a licensing agreement with the foreign government. c. ascertain the lowest-cost method of supplying goods abroad. d. cease operations in its home country. 1b. Suppose that Samsung’s production costs are the same in both China and India. Also suppose that Samsung can produce cellphones in China for an average cost of $10 per phone for 300 million phones, $12...

What are the possible business implications companies can take to prepare for the next wave of...

What are the possible business implications companies can take to prepare for the next wave of pandemics like COVID?

At Spring Break, you decide to take what you have learned in Business Statistics and apply...

At Spring Break, you decide to take what you have learned in Business Statistics and apply it in Las Vegas. You hit the roulette table and you bet on red each time. The probability of winning is approximately 0.47. You bet on red 5 times. Calculate the probability of losing at least 2 times. (Use Binomial Distribution)

What are the signs and symptoms of hypoglycemia? What is the first step you should take...

What are the signs and symptoms of hypoglycemia? What is the first step you should take when hypoglycemia is suspected? Explain the significance of Hb A1C.

Generate a list of the characteristics of ineffective speakers you have seen. Next, generate a list...

Generate a list of the characteristics of ineffective speakers you have seen. Next, generate a list of the characteristics of the effective speakers you have seen. What three qualities do you believe are most important to be a successful speaker? Explain.

A company is to hire two employees. They have prepared a final list of eight candidates,...

A company is to hire two employees. They have prepared a final list of eight candidates, all of whom are equally qualified. Of these eight candidates, five are women. If the company decides to select two persons randomly from these eight candidates, what is the probability that: Both candidates are women. The second candidate is a woman. The first candidate is a woman given that second one is a woman.

You have two potential investment projects, Project A and Project B. You can take one, but...

You have two potential investment projects, Project A and Project B. You can take one, but not both. The annual cash flows for the two projects are: Year 0 1 2 3 Project A Cash Flow -$50,000 $45,000 $5,000 $5,000 Project B Cash Flow -$50,000 $5,000 $5,000 $50,000 a. Compute the IRR for each project. b) Compute the NPV for each project if the appropriate discount rate is 5%. Which project would you take, and why? c) Compute the NPV for each...

Subjects