Students must assess the opportunity of purchasing a business as well as evaluate the likelihood that the potential investor, as a sole proprietor, will receive the required financing. This analysis should include the 4 Cs: character, business conditions, capacity to repay and collateral analysis. This analysis will also entail the qualitative examination of the business to be purchased, the new potential owner's personal characteristics, the dental industry and the location of the proposed business. Following the analysis, students should analyze the opportunity quantitatively by including the preparation and analysis of a statement of cash flows, ratio analysis, projected financial statements and, finally, an analysis of the available sources of collateral to be pledged for the loan.
