Confidential Feasibility Study

for

Business Name

Owner’s Name

1.If someone walked into your office today and offered you cash for your business, how muchdo you think it would be worth?

Today? / In 2020?
How much would you take Today?
2.What are your current annual revenues?
What level of annual revenues do you believe may be attainable by 2020?

3.How much are you currently expensing for:

  • Business overhead?

  • Equipment leases?

  • Employee benefits?

  • Liability coverage

  • Other?

4.Does your company pay taxes separately from you personally? / Yes No
If yes, how much has the company been paying?
5.How much was your personal income tax bill for last year?

6.Do you own your real estate? Yes No

If yes, does the property have a mortgage? Yes No

Interest Rate / Months Remaining / Balance Due / AppraisalValue
BusinessBuilding
Homestead
Other non business
related property

7.What is your total monthly payment for the following?

  • BusinessBuilding?

  • Homestead?

  • Other non business related property?

8.Do you ever use a bank line? Yes No

If yes,
  • Average Balance?

  • Maximum line of credit?

9.What have you paid in fees to establish and use this line of credit?
Is the line collateralized? / Yes No
10.What interest rate and benchmark (i.e. LIBOR, Prime Plus – w/ a min.) does the bank charge you?
Interest Rate / Benchmark

11.Other investments – what assets do you own and invest in outside your company?

  • Qualified Accounts

  • Brokerage Account

  • Cash Values (of life insurance)

Other (Stock, Mutual Funds, Money Market, Bank Deposits)

12.For modeling purposes, what yield (return, growth rate) do you estimate your business is generating?

13.Do you have a business continuation plan? Yes No

Is it in writing? Yes No

Do you have a formal buy-sell agreement? Yes No

How is it funded?
14.How many people do you employ?
How many employees do you have that are critical to the operation of your business?
Do you have key man insurance in place on any employees? Yes No

15.Have you ever had your business evaluation done by an outside source? Yes No

If yes,

When? / Who?

Disclaimer: All calculations are hypothetical and for illustration and educational purposes only. They are based upon your assumptions concerning, among other things, interest rates, inflation rates, tax rates, lost opportunity cost and rates of return. Since these assumptions are critical to the outcome of the illustrations, please review each of these assumptions and your understanding of general market and economic trends. The illustrations are dependent upon the quality and accuracy of the data furnished by you.

The calculations are also based on the assumption that interest rates, inflation rates, rates of return, as well as current products, tax and other laws, and annual cash outlays, all of which are subject to change, will continue unchanged for the stated number of years. It is not likely that you will achieve the exact results illustrated in any of these calculations, since it is impossible to predict the future and the effect of possible changes to your individual situation.All data received is strictly confidential.