StudentShare solutions
Triangle menu

Entrepreneur Case study analysis - Essay Example

Not dowloaded yet

Extract of sample
Entrepreneur Case study analysis

However, the quantitative analysis reveals that the company's true value is well below the asking price. This is justified by the company's declining profitability, risky financing, low liquidity, and over-utilized resources. Having conducted studies on quantitative issues regarding the financial statements in depth, it is also apparent that the initial cost of funding the anticipated purchase cost of the business in itself will have a substantial impact on the future profitability, liquidity and cash flow. Such financial pressures will occur in addition to other considerations.
Qualitative analysis revealed direct cost issues, need for investment in restoration and showroom facilities, and required improvement in human resources, together with the introduction of modern technological production, administration, marketing and accounting systems.
The prospective owner needs to take into account the need for additional cash outlay which is needed to boost the growth of the company. Consideration has to be given as to how the additional investment required to support these measures is to be funded. Human resources apprehension due to the new ownership should also be considered. In term of the qualitative analysis, on reflection we would recommend certain changes in terms of the employees of the business as there are elements within this which could not only disrupt the day to day operation of the business, but could have an adverse effect upon the business. In addition, more efficient cost management techniques to offset higher direct costs and wages are needed to ensure profitability.
The proposals we make here are threefold. Firstly, that a counter offer of $400,000 is made together with revised together with revised terms in respect of the payment terms and conditions attached. Secondly, that there be a revision of the terms and conditions relating to the agreement with the Venture Capitalists. Third, in the event of the revised sale price not being acceptable to the vendor and that John is prepared to continue on the basis of the original purchase price, that the formula and structure of proposal put forward by Phil will need to be restructured.


Table of Contents
Executive Summary 1
I. Introduction 3
II. Business Valuation 4
Financial Analysis 4
Present 4
Post Sale 4
Qualitative Analysis 8
III Business Purchase Options
IV. Conclusion 9
References 11








I. Introduction
The decision of acquiring a business entity requires a thorough evaluation. It is irrefutable that business acquisitions entail a huge amount of risk. As with any investment, a business is associated with the prospect of high returns. However, due to the problem of information asymmetry or imperfect information, it is often difficult to ascertain the intrinsic value of an investment and its future returns. Thus, different valuation principles are used to determine the true value of an investment (Jones and Dyke 1998).
Another important consideration in acquiring a business is the scenario after the transaction. It is essential that the new owner of the business if familiar with the issues currently faced and will be faced by the company he buys. Numbers are not the only factors to take into account during a purchase but the managerial and operation concerns as well. In fact, quantitative analyses should always be accompanied ...Show more

Summary

This report shows the important considerations to be taken into account in finding the intrinsic worth of the Phil Classic Car Collection Limited. The various valuation methods utilized in the report recognizes both the importance of quantitative and qualitative analysis…
Author : npaucek
Entrepreneur Case study analysis essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Entrepreneur Case study analysis"
with a personal 20% discount.
Grab the best paper

Related Essays

Research and Analysis of a successful entrepreneur: The case of Bill Gates
The paper examines the reason why Microsoft was formed and how it managed to grow to become a major international computer company. The conclusions of the paper shows that Bill Gates' success is connected with his early learnings and development of important aspects of Bill's life like public speaking, strategy, law and computer science.
11 pages (2750 words) Essay
Case Study Analysis Of A Business Failure: Woolworths Plc
The recent economic crisis came at the end of a long and bullish economic cycle, when most forecasts were optimistically projecting record earnings for most enterprises into the next five years. The indicators relied upon by many analysts included the expanding industrial sector, low interest rates, affordable cost of money, and easy credit.
40 pages (10000 words) Essay
Entrepreneur Interview & Personal Analysis
An entrepreneur is modelled in different ways and as such, no universal theory has been accepted in explaining the entrepreneurship. There is a greater diversity when it comes to the phenomena of an entrepreneur and therefore; each and every entrepreneur does exhibit different reasons for being motivated to start a business, how he or she handles the challenges and how such a person perceives business.
8 pages (2000 words) Essay
Economics Entrepreneur Case study
Tracing the history of Entrepreneurship from Schumpeter would suggest that an entrepreneur is a person who places an emphasis on innovation. (Bird, 1988). This innovation can come in many forms such as new products, innovative production methods etc. This position has further been corroborated by the fact that Peter Druker described innovation as the specific function of entrepreneurship thus the first sign of the fact that Sid is an entrepreneur is the fact that he is an innovator- a person who invented something to enhance the flexibility of working within roofing industry.
7 pages (1750 words) Essay
Entrepreneur - link literature review theories to real life entrepreneur
Thus creativity and innovation are considered as essential for the development and creation of wealth in the nation. However the process of creativity and innovation
3 pages (750 words) Essay
Entrepreneur and New Product Development - Case Study Analysis
In case where the entrepreneur is starting off a new business, will face the dilemma of what should be offered and how, and how possible could the new product be viewed by the targeted customers especially as the product
5 pages (1250 words) Essay
Economics - Entrepreneur Case study
Tracing the history of Entrepreneurship from Schumpeter would suggest that an entrepreneur is a person who places an emphasis on innovation. (Bird, 1988). This innovation can come in many forms such as new products, innovative production methods
7 pages (1750 words) Essay
Review, Evaluation & Analysis of a case study
trepreneurial life cycle consists of five major phases; startup, startup breakout stage, the emerging growth, the lower middle market, the middle market which doubles up as the exit phase. The startup is the birth of the venture where the entrepreneur’s inventiveness, drive
6 pages (1500 words) Essay
Prepare a case study of a successful entrepreneur. Analyse why the entrepreneur was successful
I also had a chance to learn on what methods employed to achieve success and maintain the high quality of products in the market. Tony Deep Wouhra is the founder as well as the chairperson of East ends food Plc. He is a great
10 pages (2500 words) Essay
Case study
d by a firm/industry and the performance of the firm (Robbins, 2009:212), the resources themselves are not productive bur the need to be converted into capabilities and this is achieved by better management and co-ordination. In order for the company to gain a competitive edge,
4 pages (1000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation