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Brend of company
level of service
customer satisfaction
1- Market Share of the industry.
2-Satisfaction of customers
3-Satisfaction of employees
4-Other Critical success factore
As a banker, while analyzing whether to grant a facility or not, you are estimating the probability of default by the borrower at a given confidence level over the life of the facility, and by estimating the amount of loss that the lender would suffer in the event of default.
i.e. Probablity of default [P(D)] and Loss given default [LGD]
1st of All, Audited Financials for last3 years.
credit risk, how active are they in the market, positive / negative industry related history
financial position i.e profitability
credit worthiness
the quality of its products
It depends on the purpose of the analysis, and what is your interest of the company (direct user or indirect user of the financial statements)
if you are investor , current or potential you will look for growth , dividends , ROA , ROE and so on
If you are creditor, current or potential you will look for the liquidity and solvency
if you are employee you will look for the benefits and the employees turnover and other related data which may attached in the board of directors report
Finally we have to specify our scope then concentrate on it
1-Investigation report provided by bank
2- Experience in business
2- Co. relationship with banks
3- Co. reputation & relationship in market
4- Qualitative analysis from Macro to Micro (Market & industry analysis, assess different risks & ways of mitigation if any , bank risk appetite)
5- Performance risk
5- Quantitave analysis (financial statement analysis existing & projected CASHFLOW
6- PERL profitability, effeciency, risk mainly leverage & debt service & liquidity)
7- New money need matching with co. requrements & purposes
8- Supports & covenants
9- Debt structure
10- finally grantingco. with the new DEBT
from my point of veiw , through2 things :-
1) Through the financial statments , even if may be its not accurate sometimes as we all need to play in it
According to the boards point of veiw , but its start.
2) Through its products or service within the market share , according to that i for sure can see the
How it works and how it try to be in the market demand and needs and not out of race.
Mainly, company liquidity and profitability position, quick assets and its reputation and Goodwill in the market. However audit and other procedures required to get the true and fair view...
First
Asset valuation
Capitalization of intangible assets
• the duration of Company
• a period of possession by the owner of the company
• the degree of risk
• Profitability
• Site
• Date Growth
• Competition
• impediments to market entry
• outlook for the market (industry)
• customer base
• technical
Evaluation of sources of income
Assessment of the market and sales growth (asset turnover)
