Business Profitability

Cost is determined on the profitability of the business, and the comparative cost approach. At the same time necessarily taken into account all the factors of internal and external business environment that affect its operation: state of the market share and evaluate business on it, the presence of competitors and access to the market, the level of technology, the degree of business transparency, the availability of its development strategy, structure and liquidity of assets, the availability of goodwill, etc. Jeffrey Hayzlett can provide more clarity in the matter. After this is determined by the final price of the business, which serves as a starting point when negotiating with a potential buyer. The next stage of pre-training business is a plan to sell businesses in the development of which is determined by the number of potential buyers (we consider the possibility of selling the business partners, competitors, suppliers, etc.) and how they involvement (publishing information in print, on tv, online and PT), while maintaining the necessary confidentiality, breach of which could adversely affect the ongoing activities exhibited by sale of businesses. During the preparation of presentation materials prepared investment memorandum, which provides potential buyers detailed information about the current state exhibited by sale of businesses and development prospects. Investment memorandum includes a detailed general description of business (field of activity, products or services, business principles, market share, etc.), reflects an analysis key financial indicators (revenues, costs, net income, etc., and their dynamics over the past few years) and the analysis of the market (volume, characteristics of demand, competition, SWOT-analysis, etc.).

In addition, investment memorandum should contain a justification for the price of business obtained in the course of his analysis, conclusions and legal audits, the description of the prospects for business development in the future. For Sale businesses closing stage of the pre-training business, which is to form a complete, legal documents, prorated for the package of documents for the immediate the sale of the business. Thus, pre-sale includes the conduct of due diligence documents of incorporation and contractual basis for the audit of financial statements, analysis financial condition and business valuation. Self-fulfillment of this scope is extremely difficult, so you can refer to specialists.

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