Answer to Question #238968 in Management for Noel

Question

What type of plan will Klaus need to follow in obtaining all the relevant information for the finance division of Blueline Luxury Yachts and other decision makers in the acquisition process? Provide a brief reason for your chosen answer.

Answer 1

Klaus needs to request for the seller's financial statements and projections as they will be key components for vetting by the decision makers. Such statements can be widely used as long as they are in accordance with generally accepted accounting principles, having been consistently applied and that the company fairly presents the results of its operations.

This is the best fit because financial records can sufficiently indicate how practical it is to take and continue making profits based on historical trends within the company being acquired.