{"id":2450,"date":"2020-01-15T12:37:56","date_gmt":"2020-01-15T00:37:56","guid":{"rendered":"http:\/\/demo.bdsaccountants.co.nz\/?p=2450"},"modified":"2020-01-17T14:15:58","modified_gmt":"2020-01-17T02:15:58","slug":"guide-business-appraisals-preparation","status":"publish","type":"post","link":"https:\/\/www.bdsaccountants.co.nz\/resources\/guide-business-appraisals-preparation","title":{"rendered":"Business appraisals preparation"},"content":{"rendered":"<h1 style=\"text-align: left;\">Systematic Approach to a Business Appraisal<\/h1>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">1. Assess What You Are Buying<\/h2>\n<ul style=\"text-align: left;\">\n<li>Goodwill<\/li>\n<li>Plant &amp; Equipment<\/li>\n<li>Fixtures &amp; Fittings<\/li>\n<li>Stock and Work in Progress<\/li>\n<li>Debtors<\/li>\n<li>Franchise Rights<\/li>\n<li>Training<\/li>\n<li>Licenses<\/li>\n<li>Liabilities<\/li>\n<li>Other Assets<\/li>\n<li>Business Structure<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">2. Financial Assessment<\/h2>\n<ul style=\"text-align: left;\">\n<li>Historical Accounts (3 years)<\/li>\n<li>Analysis of Significant Expenses<\/li>\n<li>Ratio Analysis<\/li>\n<li>Review Income Components<\/li>\n<li>Look Behind the Numbers<\/li>\n<li>What If Analysis<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">3. Payback Period<\/h2>\n<p style=\"text-align: left;\"><strong>Is the investment worth it?<\/strong><\/p>\n<ul style=\"text-align: left;\">\n<li>Less than 2 years \u2014 Very Good<\/li>\n<li>Between 2 and 5 years \u2014 Average<\/li>\n<li>More than 5 years \u2014 Questionable<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">4. Projections and Sensitivity Analysis<\/h2>\n<ul style=\"text-align: left;\">\n<li>Break Even Analysis<\/li>\n<li>Benchmarking<\/li>\n<li>Aklkllkssess the Profitability Buffer<\/li>\n<li>Budget Projections<\/li>\n<li>Cash Flow Projections<\/li>\n<li>Assess Finance Requirements<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">5. Non Financial Indicators<\/h2>\n<ul style=\"text-align: left;\">\n<li>Industry Factors<\/li>\n<li>Business Characteristics<\/li>\n<li>Synergy between Purchaser and Business<\/li>\n<li>Review Product Range<\/li>\n<li>Nature &amp; Relationship with Suppliers<\/li>\n<li>Review Existing Contracts<\/li>\n<li>Tenure of Leases and Asset Life<\/li>\n<li>Review Client Base for Spread &amp; Dominance<\/li>\n<li>Personnel<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">6. Franchises<\/h2>\n<ul style=\"text-align: left;\">\n<li>Review the Disclosure Documents<\/li>\n<li>Is the Franchiser a member of the NZ Franchise Association<\/li>\n<li>Talk to other Franchisees<\/li>\n<li>Review Franchise costs<\/li>\n<li>Review terms<\/li>\n<li>Assess the System<\/li>\n<li>Assess the Support<\/li>\n<li>Ensure that the Client has taken Legal Advice<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">7. Other Considerations<\/h2>\n<ul style=\"text-align: left;\">\n<li>Finance<\/li>\n<li>Taxation Implications<\/li>\n<li>Structure<\/li>\n<li>Timing<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: left;\">8. Opinion<\/h2>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Systematic Approach to a Business Appraisal &nbsp; 1. Assess What You Are Buying Goodwill Plant &amp; Equipment Fixtures &amp; Fittings Stock and Work in Progress Debtors Franchise Rights Training Licenses Liabilities Other Assets Business Structure &nbsp; 2. Financial Assessment Historical Accounts (3 years) Analysis of Significant Expenses Ratio Analysis Review Income Components Look Behind the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[75,135,74],"tags":[],"yst_prominent_words":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v14.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Business appraisals preparation - BDS Chartered Accountants<\/title>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/demo.bdsaccountants.co.nz\/resources\/guide-business-appraisals-preparation\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Business appraisals preparation - BDS Chartered Accountants\" \/>\n<meta property=\"og:description\" content=\"Systematic Approach to a Business Appraisal &nbsp; 1. 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