Phase 1: QSheet1 Business Development Framework (Template)

Phase 1: Q&A Business Acquisition & Analysis Framework

Domain Area Components Notes
Phase One Data Domains 1. Reporting Accuracy: SWOT Analysis- the more you know the better you will be at prioritizing the next steps for Review (short-list): 2. Transparency: Synopsis- is the information being provided by the business and company complete & accurate? 3. Annual Revenue Forecast: Is the numbers true? Or is there some serious clarification/definitions needed to understand what is being explained? 4. Financials: How is the company currently being valued? Does the 15k price indicate that you should be concerned? 5. Business Development: What is the present condition of the business? What is the current climate for its continuation as a business? 6. Strategic Marketing Plan Development: "Thinking out Loud": What does #'s 13 tell you are the priorities for the next three years? 7. Follow-up: "Wrapping your head around this business": How can I help?

# One: Reporting Accuracy-

The business in some respects almost sounds too good to be true. Hopefully this is not the case. I figure the more information you have the better you can assess:

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1. Strengths 2. Weaknesses 3. Opportunities 4. & Threats of the business up for sale.

# Two: Transparency-

My sense is there may be some transparency issues at the:

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1. Corporate and business levels; this includes Financials: Have actual financials been produced that are vetted and confirmed by the business' accountant plus the parent corporation?

Phase 1: QSheet1 Business Development Framework (Template)

Strategies: What strategies have been leveraged to grow the current business? How is growth defined? Is this growth rate sustainable? Is the current business, as it exists today, sustainable? What risks have been identified? What strategies have been identified to mitigate these risks? Is selling the business a strategy? Markets: Is there a marketing plan available? Who developed it? How many competitors exist in this local market? How has this individual business addressed the competition of the local market? Is the company's current market growing or losing to competitors? What differentiates this business from its competitors (key to developing a competitive advantage and developing a viable marketing strategy)? Customers: Is a customer database being provided? Available? Does this database differentiate customers according to what services, programs, and needs they have (this would be critical during transition since it would afford you an opportunity to identify areas to retain and subsequently grow)? What customer segment of the population does this business model seek to serve? What about DD? Is this a growth opportunity for any of the programs or services provided by the business model (how would this impact licenses, regulatory oversight & compliance, and pay/fee schedules)? Regulatory & government compliance: Has there been any disclosure of audit findings? Internal, corporate, and government audits? Issues identified? Patterns? Actions plans (required and suggested)? Structure: Has sufficient information been provided regarding schedules, resources, staff allocations, site availability, transportation? Is there a current board of directors? How is ethical, financial, legal, and HR oversight conducted in the current business operations (how does this impact the financials)? Costs: Has costs been broken down for the current business operations (and have these financial statements been provided)? This would include cost of the sites where the camps are facilitated? What is the actual profit for the camp versus the cost (15x10=150.00; although this would only be for an hour a day. So, what is the cost for the location where the camp is facilitated? If staff are there 24hrs a day x $17.00hr this would result in costs greatly exceeding the revenue; so, what does $250.00 for the camp mean? Is this the profit or the total price to the customer from which costs are paid?).

# Three: Annual Revenue Forecast-

Saw your text regarding this year's profit numbers. Sounds promising.

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Phase 1: QSheet1 Business Development Framework (Template)

1. The 50% profit of business earnings quoted, I was wondering how this business owner is defining profits? 2. Is it after all expenses are paid? 3. Or are there additional costs to be deducted from the amount? 4. I presume your potential acquisition of the company will not inherit any outstanding debts?

# Four: Financials-

It sounds like there may not be complete transparency regarding the financials;

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1. If this is the case, which I wouldn't know, it would be good to get full disclosure: Cash Flow Statements; Profit & Loss Statements; Invoices & Billing Statements; etc. 2. I figure this number, if accurate, would reflect $$$k in profits that are unencumbered by additional expenses? 3. The sale of the business, at $$$k, may be a ceiling established by the primary company? Otherwise, it would be hard to identify why this low threshold was set for the sale of the company? Numbers can be tricky and can be presented to indicate more profit than is actually received. 4. Do you know why the company is being sold?

# Five: Business Development-

You had mentioned that the profits are due to the sites that the current business owner has engaged;

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1. Are these sites still available or are you having to redevelop your own sites? 2. If these sites are not available I would wonder why? If not, how will this impact your business' growth objectives? 3. Is the school district open to this model? (Is the current owner still remaining in business but selling the current framework?) 4. How does the State's current budget crisis impact this business model? 5. It may be worth consulting with the school district regarding the company's:

Phase 1: QSheet1 Business Development Framework (Template)

Business model, Relationships, and the future of existing/past relationships. DSHS may also list this child care provider on their website; Some information may be available online as well as through DSHS regarding their: License, Regulatory standing, and QA reviews from the state. # Six: Strategic Marketing Plan Development-

The information received, from exploring and researching the issues identified in the above two paragraphs, could be useful in clarifying your:

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1. Strategic plan (in this case often referred to as a Strategic Marketing Plan) that addresses: Marketing, financials, Customer engagement, Public relations, Acquisition of the business, and Growth objectives.