Ten hard questions to ask or be asked
1 | Does the business have a credit rating? What is it? Does your industry knowledge suggest that the rating might be incorrect? |
2 | What do market analysts (fundamental or technical) have to say about this company (or, if it is not listed/tracked, about similar companies)? |
3 | How does the capital structure look? |
4 | Should the business be factoring, leasing, or otherwise refinancing? |
5 | How are the results of subsidiaries, joint ventures, associates and other investments accounted for? Is this realistic? |
6 | Are the figures realistic, or do you need to adjust them? |
7 | What is the true cost of capital? How does this affect your view of operations? |
8 | How does the business measure up using indicators of debt? |
9 | What do the investment ... |
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