Making you financially informed
when buying a business.
You will need two figures to complete this area: Purchase Price: Quite simply the amount you are paying for the business. On Costs: All costs associated with the Business Purchase excluding the Purchase Price. This would include any lawyer costs and government taxes or charges. Default: If you are unsure as to what the "On Costs" would be, then just e ...
The purpose of this tool is to provide a quick yes/no decision filter to enable you to dig deeper or use the trash can. The methodology is not in the details but rather an overview of whether the business you are looking at warrants further investigation. You will still need to do due diligence. You will still need legal advice. You will still need to investigate the marke ...
How are you funding your business acquisition? The funds must come from two main sources. Banks or Financial Institutions, or Your own money or family sources. Funds from Financial Institutions will be over a "term" in years. Required Action: Simply enter the amount of funds you are providing, your "Own Funding". The amount of Borrow fun ...
"Given the price I am paying for this business, what do I need to do to achieve profitability?" (.... and profitability means Profit before Tax) The Profit and Loss Forecast offers some level of flexibility. You can play with "Sales" and "Total Expenses" by substituting numbers in any of the years. You would do this to test scenarios ...
This Cash Forecast provide a rudimentary yet informative estimate of your cash needs. There are some assumptions; stock levels remain constant, and the timing of receipts and payments are consistent from year to year. It is not meant to provide a comprehensive detailed analysis of your cash needs but rather to highlight your overall cash position from year to year. It is d ...
You can target a desired Net Cashflow by creating targeted values in: Sales, Gross Margin %, Total Expenses, Purchase Price. As Cashflow rules, the basis for any decision is cashflow based. That is - what am I getting from this business, in the hand, after everything is said and done. As a starting measure you want to ensure that at least your cashflow is p ...
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