FACTORS AFFECTING A BUSINESS SALE ASSESSMENT

  • Factors effecting a business valuaution
  • Business History Business Reputation
  • Market Share Potential for growth
  • Industry conditions Superiority
  • Vulnerability Political and economic outlook
  • Cash flow Management / staff competency
  • Reliance/non-reliance on founder 
  • Production capacity 
  • Ability to increase revenues Cost competitiveness
  • Ability to reduce costs Business’s use of technology
  • Comparable businesses Comparable industries
  • Product / service quality and competitiveness 
  • Encumbrances (if any)
  • Prevailing legal issues (if any) 
  • Ease of operation
  • Rate of return Potential to improve customer relationships
  • Ability to borrow against business or assets 
  • Performance results and ratios
  • Location Presentation of premises
  • Existing relationships with suppliers and customers 
  • Intellectual property
  • Intangibles including relationships and contacts 
  • Goodwill
  • Condition of books and records 
  • Computerisation
  • Tax implications Alternative opportunities
  • Affordability Working conditions (including hours and days)
  • Property lease conditions and landlord 
  • Condition of Assets for sale and their remaining useful life
  • Attractiveness of the industry – competitive forces, power of suppliers, power of customers, risk of new entrants and risk of substitutes
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