Page 214 - Microsoft Word - 00 P1 IW Prelims.docx

Chapter 15 4

Example 1

Imagine you are buying a company.

 What would affect your decision?

 What would make you want to go ahead with the acquisition?

 What would make you think it's not such a good investment?

Examples include:

 Pending legal actions

 Outstanding tax investigations

 Declining market

 Increasing competition

 Damage to reputation

 Old assets in need of replacing

 Declining financial performance

 Quality issues

 Reliability of asset valuations

 Completeness of liabilities

 Human resources issues

Illustrations and further practice

Now try Exam style question from Chapter 15

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