You were a chosen accountant by the CEO of your company. He has asked you to...
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You were a chosen accountant by the CEO of your company. He has asked you to do due diligence on another company he's interested in acquiring. The business in question does not have cash. However, they have a positive income statement showing they can pay off debts, pay dividends, etc. Begin by explaining what is a due diligence report and how a company can be valued. How would you describe to your CEO what situation the company is in while also advising him based on the information above? You were a chosen accountant by the CEO of your company. He has asked you to do due diligence on another company he's interested in acquiring. The business in question does not have cash. However, they have a positive income statement showing they can pay off debts, pay dividends, etc. Begin by explaining what is a due diligence report and how a company can be valued. How would you describe to your CEO what situation the company is in while also advising him based on the information above?
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A due diligence report is a detailed analysis and investigation of a company that a potential acquirer intends to purchase The report aims to identify ... View the full answer
Related Book For
The Legal Environment of Business A Critical Thinking Approach
ISBN: 978-0132664844
6th Edition
Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne
Posted Date:
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