KBL is eager to move forward with acquisition of their competitor, will enable them to expand operations & triple their workforce. It will take 18 months to complete the project at a cost of $5 million.
1. Comprehensively explained the purpose of the project in a well-written business case
2. Comprehensively explain the pros and cons of the project (benefits) in a well written business case
3. Develop the budget/funding schedule (this is how you project to allocate $5 million buget) in well-written business case
4. Explain the major risks or opportunities of the project
Answer previewA budget or acquisition plan outlines how, when, the company will pay, and the amount of money that will be disbursed to the intended party. In this case, the funding schedule gives the whole picture of the amount of money and a specific date that will be disbursed to the other business entity. Therefore, the company will formulate a schedule that will apply the fund to its acquisition process. The funding process will be separated into three phases. The first $1.5 million will be delivered at the beginning of the first six months. The second $2.5 will be disbursed after the second 6 months. The remaining $1 million will be paid after the third phase. The five million will be allocated in the following way. The first, $1.0 million, will be used to purchase the shares. Also, $2.0 million will be used to purchase all the assets of the company, including the current inventory. $0.5 million will be used to pay loans and settle debts.[828 Words]