This is a generic format for the preparation of a business plan for the acquisition of a state-owned enterprise (SOE). The outline presented below must be modified to suit the particular circumstances of each SOE divestiture.

The business plan is prepared in conjunction with the due diligence investigation and the valuation. While professional advisors should be consulted, there is a lot of thought that should go into the business plan. This will minimize the cost of external advisors, as well as give you the opportunity to understand the business and its potential, as well as the risks.

Remember to consult widely and seek information. Research sources can be found elsewhere in the "Toolkit."

1. Table of Contents

2. Executive Summary: This should be a brief 2 - 3 page synopsis of the business plan, and should concisely present the main points of the plan including the nature of the business, how the business will grow, who will manage it, and the sources and uses of funds, including pay-back ability.

3. Situation Analysis: This section should describe the transaction and the current status of the business, both internally and externally. A "SWOT" analysis (Strengths / Weaknesses / Opportunities / Threats) would be appropriate. Bidders should dig deeper than the information provided by the transaction advisor in the Information Memorandum.

4. Bidding Company: Identify the bidder, the organisational structure and the unique attributes of the business and its shareholders/owners.

5. Objectives: As a bidder and possible future business owner, why are you acquiring the business? How will your company grow and/or transform the business? Is there a long-term exit strategy? Will the business be restructured and units sold or closed down? Will employees be kept?

6. Management: Who will comprise the management team? What are their qualifications? How will they be compensated and/or incentivized? What is the term of their contracts?

7. Product/Service Description: Describe in detail the products and/or services produced by the business, including an assessment of the position in the product life cycle. Describe any plans for product improvement or new product research.

8. Market Analysis

* Customers (SOE and private sector)
* Competition
* Assessment of market size and growth rate

9. Marketing Strategy

* Pricing
* Distribution and selling tactics
* Advertising and promotion
* Public relations

10. Manufacturing or Production Process: Describe in detail the process of manufacturing or producing the product or service. A schematic diagram of the process would be helpful. Identify any patents, licenses or other intellectual property.

11. Financial Analysis: provide a detailed analysis of the financial performance of the SOE, and if possible compare against its peers. Present a basis for the valuation of the company.

12. Financial Forecasts

* Key assumptions
* Forecasted financial statements - 5 years
* Schedules, e.g., capital expenditure
* Sources and uses of funds
* Budget (detailed 12 months budget for year 1)

13. Conclusion: Summarize the opportunity, the strategy and how your company will achieve its objectives by acquiring the SOE. Justify the valuation of the company and how the acquisition will be financed.


* Sale Documentation
* Qualifications summary of key staff
* Historical financials of the SOE, including prior years audits
* Relevant detailed schedules
* Price List
* Customer list


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