1. BUSINESS VENTURE VALUATION

2. ALTERNATIVES FOR BUYING EXISTING BUSINESS ADVANTAGES DISADVANTAGES

3. EVALUATING AN EXISTING BUSINESS WHY IS BUSINESS FOR SALE CONDITION OF THE BUSINESS POTENTIAL FOR COMPANY’S PRODUCTS OR SERVICES LEGAL ASPECTS FINANCIAL SOUNDNESS

4. CONDITION OF BUSINESS INVENTORY ACCOUNTS RECEIVABLES LEASE ARRANGEMENTS BUSINESS RECORDS INTANGIBLE ASSETS LOCATION AND APPEARANCE

5. PRODUCTS AND SERVICES MARKET ANALYSIS CUSTOMER CHARACTERISTICS & COMPOSITION COMPETITOR ANALYSIS

6. LEGAL ASPECTS LIENS BULK TRANSFERS CONTRACT ASSIGNMENTS COVENANTS NOT TO COMPETE ONGOING LEGAL LIABILITIES

7. BULK TRANSFERS SELLER PROVIDES A SIGNED, SWORN LIST OF EXISTING CREDITORS LIST OF PROPERTY INCLUDED IN SALE BUYER KEEPS BOTH LISTS FOR SIX MONTHS BUYER GIVES WRITTEN NOTICE OF SALE TO EACH CREDITOR MIN 10 DAYS BEFORE TAKING POSSESSION

8. CONTRACT ASSIGNMENTS PATENT, TRADEMARK, COPYRIGHT EXCLUSIVE AGENT OR DISTRIBUTOR REAL ESTATE LEASES FINANCING & LOAN DEALS UNION CONTRACTS

9. ONGOING LEGAL LIABILITIES PHYSICAL PREMISES PRODUCT LIABILITY CLAIMS LABOR RELATIONS INSURANCE COVERAGE

10. FINANCIAL SOUNDNESS INCOME STATEMENTS & BALANCE SHEETS FOR PAST 3-5 YEARS INCOME TAX RETURNS FOR PAST 3-5 YEARS OWNER’S COMPENSATION & RELATIVES CASH FLOW

11. BUSINESS RECORDS TO REVIEW FINANCIALS INCOME TAX RETURNS CASH FLOW RECORDS OF A/R RECORDS OF A/P LOAN AGREEMENTS WITH BANKS & LENDERS EXISTING CONTRACTS WITH MAJOR SUPPLIERS OR CUSTOMERS

12. BUSINESS RECORDS (CONT’D) CONTRACTS OR LEASES ON REAL ESTATE, FIXTURES, OR EQUIPMENT INSURANCE POLICIES DOCUMENTATION ON PTCs INDIVIDUAL EMPLOYEES”LABOR CONTRACTS OR UNION CONTRACTS BUSINESS LICENSES ANY LAWSUITS THE COMPANY IS INVOLVED IN

13. NEGOTIATING THE DEAL FIRST RULE: NEVER CONFUSE PRICE WITH VALUE

14. VALUE IS WHAT BUSINESS IS WORTH PRICE IS WHAT BUYER AGREES TO PAY

15. THE PARTY WHO IS THE BETTER BARGAINER USUALLY COMES OUT ON TOP

16. SELLER PREFERENCES HIGHEST POSSIBLE PRICE SEVER ALL RESPONSIBILITY FOR COMPANY’S LIABILITIES MAXIMIZE CASH FROM DEAL AVOID UNREASONABLE CONTRACT TERMS MINIMIZE TAX BURDEN FROM SALE MAKE SURE BUYER CAN MAKE FUTURE PAYMENTS

17. BUYER PREFERENCES LOWEST POSSIBLE PRICE NEGOTIATE FAVORABLE PAYMENT TERMS OVER TIME ASSURANCE THAT YOU ARE BUYING THE BUSINESS YOU THINK YOU ARE GETTING AVOID PUTTING SELLER IN POSITION TO OPEN A COMPETING BUSINESS MINIMIZE CASH PAID UP FRONT

18. FIVE Ps FOR NEGOTIATING PATIENCE PREPARATION POISE PERSISTENCE PERSUASIVENESS

19. VALUATION METHODS BALANCE SHEET/ADJUSTED B/S MULTIPLE OF EARNINGS DISCOUNTED EARNINGS METHOD