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Evidence Guide: CPPDSM5033A - Merge or acquire a business

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

CPPDSM5033A - Merge or acquire a business

What evidence can you provide to prove your understanding of each of the following citeria?

Obtain, interpret and confirm instructions.

  1. Client requirements and instructions are discussed and clarified according to legislative, industry andagency requirements.
  2. Assignment plan that best meets client requirements is determined and implemented.
  3. Fees are determined and negotiated with the client according to industry and agency requirements.
  4. Advice is prepared and provided to other enlisted professionals involved in the merger or acquisition process.
Client requirements and instructions are discussed and clarified according to legislative, industry andagency requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assignment plan that best meets client requirements is determined and implemented.

Completed
Date:

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Fees are determined and negotiated with the client according to industry and agency requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advice is prepared and provided to other enlisted professionals involved in the merger or acquisition process.

Completed
Date:

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Assess suitability of business for merger or sale.

  1. Information on business is compiled and used to ensure that reliable data and advice are accessed.
  2. Critical assessment of theownership, structure and status of the business is conducted against statutory and merger or acquisition requirements.
  3. Business potential and capacity are reviewed against financial and strategicmarketability.
  4. Synergistic opportunities are identified and incorporated in assessment.
  5. Suitability for merger or acquisition of the business is researched and determined using industry-adopted assessment methods.
  6. Research gathered from previous merger or acquisition assessments is used to ensure objectivity of assessment as to business suitability for sale or merger.
  7. Assumptions are checked for reasonableness and recorded according to agency requirements.
Information on business is compiled and used to ensure that reliable data and advice are accessed.

Completed
Date:

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Critical assessment of theownership, structure and status of the business is conducted against statutory and merger or acquisition requirements.

Completed
Date:

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Business potential and capacity are reviewed against financial and strategicmarketability.

Completed
Date:

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Synergistic opportunities are identified and incorporated in assessment.

Completed
Date:

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Suitability for merger or acquisition of the business is researched and determined using industry-adopted assessment methods.

Completed
Date:

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Research gathered from previous merger or acquisition assessments is used to ensure objectivity of assessment as to business suitability for sale or merger.

Completed
Date:

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Assumptions are checked for reasonableness and recorded according to agency requirements.

Completed
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Advise on options for merger or sale of business.

  1. Strengths and limitations of current business and proposals are evaluated and communicated to the client.
  2. Client is provided with appropriate information and assisted to make an informed decision on merger or acquisition options.
  3. Assessment and advice are provided within a timeframe that does not disadvantage the client's opportunity for maximum results.
  4. Client is referred to appropriate enlisted professionals for financial and legal advice on options.
Strengths and limitations of current business and proposals are evaluated and communicated to the client.

Completed
Date:

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Client is provided with appropriate information and assisted to make an informed decision on merger or acquisition options.

Completed
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Assessment and advice are provided within a timeframe that does not disadvantage the client's opportunity for maximum results.

Completed
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Client is referred to appropriate enlisted professionals for financial and legal advice on options.

Completed
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Complete assessment.

  1. Arrangements are put in place for all records and documentation relating to the merger or acquisition process to be prepared and checked.
  2. Relevant parties are contacted and informed of the decision regarding business sale or merger.
  3. Data and assessment findings are documented and stored correctly to inform future merger or acquisition assessments.
  4. Feedback on the merger or acquisition process is encouraged and used to inform future assessments.
Arrangements are put in place for all records and documentation relating to the merger or acquisition process to be prepared and checked.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant parties are contacted and informed of the decision regarding business sale or merger.

Completed
Date:

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Data and assessment findings are documented and stored correctly to inform future merger or acquisition assessments.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Feedback on the merger or acquisition process is encouraged and used to inform future assessments.

Completed
Date:

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Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Overview of assessment

This unit of competency could be assessed through practical demonstration of merging or acquiring a business. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:

analysing business viability, organisational and staffing structures and issues and their impact on possible mergers or acquisitions

completing relevant documentation and reports

identifying benefits and limitations of current business structure for merger and acquisition, and strengths and weaknesses of proposals

identifying improvements in assessment of merger or acquisitions processes

knowledge of agency practice, ethical standards and legislative requirements associated with merging or acquiring a business

preparing and structuring advice on mergers, acquisitions and assessment outcomes

sensitive relaying of relevant information to clients.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable resources and simulated or real opportunities to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.

Required Skills and Knowledge

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

access a variety of information relating to assessing a business and relevant information regarding legislative requirements, especially as they relate to mergers and acquisitions

conduct SWOT analysis identifying strengths, weaknesses, opportunities and threats; internal and external analysis and risk assessments; and synergistic opportunity analysis

determine most appropriate appraisal methods

liaise with clients

maintain trust accounts

obtain information relevant to assessing a business for merger or acquisition

plan and monitor activities related to the sale or merger of business

provide information on the assessment process and the final assessment

relate to people from a range of social, cultural and ethnic backgrounds and of varying physical and mental abilities

resolve client concerns and issues

select and use appropriate technology

undertake analysis of data and structure of a business with a view to assessing viability and merger or acquisition options.

Required knowledge and understanding:

agency's policy and procedures for client service, including ethical behaviour and appraisal procedures

client liaison techniques

mechanisms to obtain and analyse client comments and feedback

merger and acquisition considerations

principles and techniques for assessing business, organisational and staffing structures

principles and techniques for checking financial statements, and the ownership, structure, staffing and status of a business and associated plant and equipment

principles and techniques for communicating concerns to clients

relevant federal and state or territory legislation and local government regulations related to:

anti-discrimination

business broking

business operation and assessments, especially in regard to franchise and business structures, and business mergers or acquisitions

consumer protection

environmental issues

equal employment opportunity

financial probity

industrial relations

OHS

service standards and best practice models

trust accounting principles and practices

types of business assessment methods, and benefits and limitations of each for a variety of business types or information (especially as they relate to mergers and acquisitions).

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below. Add any essential operating conditions that may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts.

Legislative, industry and agency requirements may relate to:

access and equity policy, principles and practice

business and performance plans, including organisational goals and objectives

client service policies

ethical standards

industry and agency codes of conduct and practice, and code of ethics

legislative and statutory requirements for provision of business broking services

OHS policies, procedures and programs

organisational policy, guidelines and requirements

policies and procedures relating to own role, responsibility and delegation

privacy and confidentiality requirements

records and information systems

reporting and communication structures

terms and conditions of employment.

Enlisted professionals may include:

accountants

financiers and financial institutions

financial advisers

landlords and managing agents

legal advisers

licensed settlement agents

real estate agents

solicitors.

Information may be compiled from:

analysis of organisational and managerial or ownership structure

analysis of personnel, capital (e.g. money, plant and equipment), methods, materials and markets

financial records:

current and historical

internal and external

asset and liability statements

interviews with key personnel

sales information

staff records

SWOT analysis.

Critical assessment of the ownership, structure and status may include:

analysis of taxation considerations

assessment of staffing structures

composition of owners and stakeholders, working owners and non-working owners

confluent liabilities

current and potential employee conflicts

identification and control of contingencies

identification of intangible assets

identification of key employees

internal and external analysis and risk assessment

marketability and viability of the operation, including current and historical financial viability

numbers of current staff as opposed to anticipated number of staff required after merger or acquisition

operational effectiveness

participation and voting power

potential for synergistic opportunities

potential of staffing structures

readiness to be presented as a 'turnkey operation'

staff's ability or potential to make an offer for business

staff training levels and requirements

stock, assets, liabilities and capital

trading and performance history

transferability of rights.

Financial and strategic marketability may include:

creation of an immediate return on investment on a stand-alone basis (e.g. financial buyer) as opposed to being concerned with the creation of opportunities for value adding and long-term growth (e.g. strategic buyer)

equity buyers

staff or internal buy out or partners.

Synergistic opportunities:

may relate to:

combination benefits, such as market power and increased purchasing power

functional skills transfer, including learning or improving functional skills by merging

management skills transfer

resource sharing, including sharing distribution channels

may be identified through:

external analysis (treasure hunting)

internal analysis.

Research includes:

accurate data and information gained from previous merger and acquisition assessments

identification and use of industry-approved and reliable assessment methods that best fit information available and the type of business.

Agency requirements may be outlined within:

access and equity policy, principles and practice

business and performance plans

ethical standards

goals, objectives, plans, systems and processes

legal and organisational policies and guidelines

mission statements and strategic plans

OHS policies, procedures and programs

privacy and confidentiality requirements

quality and continuous improvement processes and standards

quality assurance and procedures manuals, including sales and client liaison procedure manuals.

Proposals may be:

for immediate or longer term mergers and acquisitions

from financial or strategic interests.

Records and documentation may include:

documents and pro formas for clients

forms and paperwork required by legislation and statutory regulation

internal documents required for the completion of the assessment process.

Feedback may include:

formal and informal discussions with existing and previous clients

information from potential mergers or acquirers

information provided by others involved in the appraisal process, both internal and external to the organisation.