Students must evaluate the possibility of purchasing a business, as well as to assess the likelihood that a potential investor, as a sole proprietor, will get the necessary financing. This analysis should include 4-Cs: character, business conditions, the ability to repay and provide analysis. This analysis will also entail a qualitative survey of the business to be acquired, the personal characteristics of potential new owner, the dental industry and location of the proposed business. After the analysis, students must be quantitatively analyzed, including preparation and analysis of the statement of cash flows, ratio analysis, projected financial statements, and, finally, an analysis of available sources to provide collateral for the loan.
This is part of a set of cases Ivey and technical notes written for the introductory-level courses. "Hide
by Elizabeth M. Grasby, Andrew Smith Source: Richard Ivey School of Business Foundation 9 pages. Publication Date: June 4, 2008. Prod. #: 908N12-PDF-ENG