How to Make a Business Assessment Template

This how to make a business assessment template has 3 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our how to make a business assessment template:

How to Assess a Business for Sale Standard Operating Procedure Department: Finance/Accounting Purpose: Valuating a business is not a simple exercise, nor is it an exact science. It simply provides a theoretical value that will give you an idea of the fair price to pay for a business. Ultimately, the business is worth whatever you think it's worth, based on the criteria you set forth. But you can make your estimation by using several different ways to value the business and then choosing the mix that reflects your final value estimate. Frequency: When needed Procedure: Perform a due diligence. Evaluate assets. Analyze company liabilities. Determine the fair market value. Estimate the business value with a financial technique. Definition/Explanation: Due diligence: The first thing to do when considering purchasing a company is to assess its financial statements, legal status and assets, including inventory, equipment and accounts receivable. You should also confirm the vendor's good faith and the soundness of the business. If most of its sales are generated by only a few customers, for instance, you will need to confirm that they intend to continue doing business with the firm once you have acquired it. Assets: The seller should provide a detailed list of what is up for sale. These assets may include land, buildings, equipment, inventory, the name of the business, its customer list, intellectual property etc. When assessing the value of a company's equipment, make sure you have model numbers, dates of purchase and a record of how well the machinery is working, along with maintenance schedules and warranty details