AZOWAD ABRAR

Due Diligence Checklist: 1. Evaluate The Total Market Share of The Industry: You must evaluate the total market share of the industry because it shows the maximum profitability of your business. For example: A region has 100 people. They need 100 Kg bread every month. The price of 100 Kg bread is $10000. So, no matter how many business exist; their total revenue will not cross $10000. 2. Evaluate The Future Potential of The Industry A region has 100 people but there will not be always 100 people. It may increase or decrease. If the population increase, this means more people will need bread. So, the total market share may increase in future. 3. Evaluate The Business Process of The Company Check how the business you are going to acquire runs. If there is any flaw in the business process, can you make it correct? If the answer is yes, you can acquire the company.  4. Evaluate The Quality of The Materials of The Company: If the company has quality materials, i...

Hi guys. In this article I am going to cover due diligence, what are the goals of due diligence, about their types and examples. I will be very specific to this topics and try to make you understand this term very easily. What is Due Diligence? Due diligence is an evaluation of a company often done during an acquisition, merger or before issuing IPO by considering some facts. Some people confuse Due Diligence with Audit. Both of the terms are not same. We are going to learn about it in this article. Audit vs Due Diligence: Some people mix the term Due Diligence with Audit but due diligence is more than that. Due diligence is very similar to audit but it is not audit. Due Diligence doesn't always have to follow accounting rules. You must follow accounting rules or GAAP for auditing. Goals of Due Diligence: To make sure that financial, business process and operational details to look right. To look for inconsistency in best practices of business op...

[ Keywords: Asset Transformation can be described as, Asset Transformation by Banks, Asset Transformation by Financial Intermediary, Transformation Examples ] Asset Transformation can be described as: Asset transformation can be described into two ways. One is the way of bank and another is in the way of financial intermediary. They are quite different from one another. But there is a common. Both of them means turning something into asset or changing the shape of asset. So, read this article to know about asset transformation clearly. (BY AA) What is asset transformation by banks? Asset transformation by bank is  turning liabilities (Deposits)   into assets (Loan). For Example: Bank accept deposit from individuals. The term of deposits can be different. Bank pool their entire investable deposit and make small pieces which will be offered to the borrower. Every pieces will consists of different amount of money, condition and time to repay. An...

Definition of Mode of Finance: Mode of finance is the way we finance a business. Introduction: Hi guys. This is Azowad Abrar. Today I am going to talk about Mode or Method of finance. I am studying Bachelor of Business Study. So, the information here will be a little bit of bookish but genuine. So let's start. Types, Definition and Comparison There are two modes or method of finance. One is direct finance and the other is indirect finance. Direct Finance:  Direct finance is one of the two method of financing in which the borrower borrow funds from financial market without any connection of the third party institutions. We can consider it as direct financing when you buy an asset that wasn't transformed by the third party. We will know what is asset transformation shortly.  When a person purchase a government bond from a broker who haven't transformed the bond yet, it will be a direct financing because there was no asset transformation. Indirect ...