收購功課一問

Some suggestions:
1. use SWOT analysis to support why you want to acquire the business, any need to change the forecast which will affect the prize. For example, if the business has many shops by renting, the rent will increase in coming years which will affect the profit prospects.

2. do you prepare the forecast profit and loss account and balance sheet for coming years, such as 10 years? And the adjust to cash flow forecast and apply NPV to estimate the price

3. Assumptions to estiate the residual value in NPV analysis

4. Other financial analysis, such as P/E ratio, Returns on asset and so on can be used.

5. Background description of the business as a basic understanding, such as the business scope ( in terms of products and geographical areas), profit and loss accounts for previous 5 years, major assets and liabilities, management staff and details, future plan for expansion and so on.