Question

explain in clear terms the justification for evaluating existing business

explain in clear terms the justification for evaluating existing business

Homework Answers

Answer #2

A business evaluation is an analysis and review of the entire business as whole. It is conducted to determine the overall standing and operation of a business before it is sold by the owner to a potential intersted buyer. Its purpose is to make judgements about a program, to improve its effectiveness, or to inform programming decisions.

When evaluating an existing business for a potential purchase, completing due diligence is abdolutely critical. Here are the component to evaluate within a due diligence process.

Assets- understand the equipments, supplies and products that the business has and owns outright.

Financials, legal, employees, customer and product and service are some other components.

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the meaning of the terms business risk and financial risk.
Explain the meaning of the terms business risk and financial risk.
Explain how the business planning process is one of revision. Explain two clear examples of your...
Explain how the business planning process is one of revision. Explain two clear examples of your own (not those in the textbook) showing how your calculations in the financial section of the business plan, may force you to go back and change elements in previous sections of the plan. “The accountant is the most important advisor to an entrepreneur.” Discuss the validity of this statement, explaining a variety of ways an accountant assists an entrepreneur. Discuss why cash flow projections...
[Q18-Q23] You are evaluating a 1-year project that is in line with the firm’s existing business....
[Q18-Q23] You are evaluating a 1-year project that is in line with the firm’s existing business. Specifically, this new project requires an investment of $1,200 in free cash flow today, but will generate $1,600 one year from today. The project will be partially financed with a 1-year maturity debt whose face value is $200 and interest rate is 10%. Suppose that you estimated the cost of equity as 20%, based on the firm’s stock data. However, you were not able...
When the terms of a written agreement are clear, and there is no fraud or deceit,...
When the terms of a written agreement are clear, and there is no fraud or deceit, the parol evidence rule bars oral evidence that contradicts those terms. a. True b. False
1. You are evaluating a 1-year project that is in line with the firm’s existing business....
1. You are evaluating a 1-year project that is in line with the firm’s existing business. Specifically, this new project requires an investment of $1,200 in free cash flow today, but will generate $1,600 one year from today. The project will be partially financed with a 1-year maturity debt whose face value is $200 and interest rate is 10%. Suppose that you estimated the cost of equity as 20%, based on the firm’s stock data. However, you were not able...
How does temperature affect the reaction rate? Explain in terms of the collision theory. Please explain...
How does temperature affect the reaction rate? Explain in terms of the collision theory. Please explain simply and clear, thanks!
John wants to buy an existing business that is for sale the owner claims that the...
John wants to buy an existing business that is for sale the owner claims that the business is highly profitable but john has his doubts.What suggestions would you give john to clarify his doubts regarding the financial standing of the business . And explain how the suggestion would have helped john in making the right decision. If John decided to purchase the business what planes do you think he must have In place? give specific examples of each of the...
In terms of fraud detection Practice Advisory 1210.A2-2 makes clear the difference between management and internal...
In terms of fraud detection Practice Advisory 1210.A2-2 makes clear the difference between management and internal audit’s roles. Please explain the differences and how an internal auditor takes the role in respect of frauds.
INSTRUCTIONS: DEFINE THE FOLLOWING TERMS AND CONCEPTS IN A CLEAR, CONCISE, AND EXPLICIT WAY. DEMONSTRATE THE...
INSTRUCTIONS: DEFINE THE FOLLOWING TERMS AND CONCEPTS IN A CLEAR, CONCISE, AND EXPLICIT WAY. DEMONSTRATE THE RELATIONS BETWEEN THEM! • Shadow banking & leverage;
What terms or concepts were not clear? The Alienation of Labor Karl Marx, Economic and philosophic...
What terms or concepts were not clear? The Alienation of Labor Karl Marx, Economic and philosophic manuscripts of 1844
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT