This opportunity must be analyzed by Sherry as a going concern. This case provides a distinctive situation: the opportunity to apply company valuation theories in a small business environment, and from the view of an entrepreneur. This situation provides the ability to utilize the planning, analytic, and decision making techniques of a prospective entrepreneur who's considering getting an existent business. This is complicated due to the fact that the business is seasonal and only available at some part of the year. It also affects the evaluation in the failing economic environment that existed at the time of the case (early 2009), leading to the chance of declining tourist numbers and disbursement on PEI. While her family may support her financially, the task of raising the additional capital required could prove to be difficult given the credit markets that are very limited as well as Sherry's youthful age is a factor. An intensive analysis of the fiscal situation of the business's has to be completed, strengths and weaknesses discovered, and places for development mentioned. Yearly revenue, expenses, and cash operating earnings should be predicted, as well as the worth of the company should be approximate. An advice, based on the different tools utilized to assess the situation information, must then be made.
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
PUBLICATION DATE: January 01, 2014 PRODUCT #: NA0274-PDF-ENG
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