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Redactie
Financieel Management

The business must be capable of operating independently as a commercially viable entity.

In assessing the stand-alone viability of the business, several requirements have to be considered. Important requirements are: the necessary operating finance can be secured; the company does not (overly) rely on intergroup trade; sufficient critical mass; access to the necessary trademarks, licenses and brand names; and not dependent on group distribution and sales force.

With divisions of larger groups other practical issues to look at are: has the business already been operating as a stand-alone entity for some time, with it´s own management information and invoicing systems; is it a separate legal entity or is it necessary to transfer assets and people; do people have to be relocated; is new accommodation required; and what services are handled at group level, such as tax, treasury, r&d and legal services.

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