BUSINESSVENTUREVALUATION（一）.pptVIP

ALTERNATIVES FOR BUYING EXISTING BUSINESS ADVANTAGES DISADVANTAGES * BUSINESS VENTURE VALUATION EVALUATING AN EXISTING BUSINESS WHY IS BUSINESS FOR SALE CONDITION OF THE BUSINESS POTENTIAL FOR COMPANY’S PRODUCTS OR SERVICES LEGAL ASPECTS FINANCIAL SOUNDNESS CONDITION OF BUSINESS INVENTORY ACCOUNTS RECEIVABLES LEASE ARRANGEMENTS BUSINESS RECORDS INTANGIBLE ASSETS LOCATION AND APPEARANCE PRODUCTS AND SERVICES MARKET ANALYSIS CUSTOMER CHARACTERISTICS COMPOSITION COMPETITOR ANALYSIS LEGAL ASPECTS LIENS BULK TRANSFERS CONTRACT ASSIGNMENTS COVENANTS NOT TO COMPETE ONGOING LEGAL LIABILITIES BULK TRANSFERS SELLER PROVIDES A SIGNED, SWORN LIST OF EXISTING CREDITORS LIST OF PROPERTY INCLUDED IN SALE BUYER KEEPS BOTH LISTS FOR SIX MONTHS BUYER GIVES WRITTEN NOTICE OF SALE TO EACH CREDITOR MIN 10 DAYS BEFORE TAKING POSSESSION CONTRACT ASSIGNMENTS PATENT, TRADEMARK, COPYRIGHT EXCLUSIVE AGENT OR DISTRIBUTOR REAL ESTATE LEASES FINANCING LOAN DEALS UNION CONTRACTS ONGOING LEGAL LIABILITIES PHYSICAL PREMISES PRODUCT LIABILITY CLAIMS LABOR RELATIONS INSURANCE COVERAGE FINANCIAL SOUNDNESS INCOME STATEMENTS BALANCE SHEETS FOR PAST 3-5 YEARS INCOME TAX RETURNS FOR PAST 3-5 YEARS OWNER’S COMPENSATION RELATIVES CASH FLOW BUSINESS RECORDS TO REVIEW FINANCIALS INCOME TAX RETURNS CASH FLOW RECORDS OF A/R RECORDS OF A/P LOAN AGREEMENTS WITH BANKS LENDERS EXISTING CONTRACTS WITH MAJOR SUPPLIERS OR CUSTOMERS BUSINESS RECORDS (CONT’D) CONTRACTS OR LEASES ON REAL ESTATE, FIXTURES, OR EQUIPMENT INSURANCE POLICIES DOCUMENTATION ON PTCs INDIVIDUAL EMPLOYEES”LABOR CONTRACTS OR UNION CONTRACTS BUSINESS LICENSES ANY LAWSUITS THE COMPANY IS INVOLVED IN NEGOTIATING THE DEALFIRST RULE: NEVER CONFUSE PRICE WITH VALUE VALUE IS WHAT BUSINESS IS WORTHPRICE IS WHAT BUYER AGREES TO PAY *