My Process for Evaluating Business Acquisitions

1) Initial evaluation

What are the earnings? How reliable are they? Once we take over, will they go up or down? If up, is it in spite of us or because of us?

2) Proceed with NDA if interested

3) Study information received and model scenarios

Continued performance scenario, base case stressed for good times and bad

4) Make offer/LOI/APA

5) Due dilligence

6) OEM approval

7) Sell cars make money