Modification History
Not Applicable
Unit Descriptor
Unit descriptor |
The unit of competency specifies the outcomes required to merge or acquire a business. It requires the ability to assess the suitability of a business for sale or merger, obtain and act on client instructions, advise on options for the acquisition or merger, and finalise the assessment for the client. It requires knowledge of merger and acquisition considerations, the business brokerage environment, legislation relating to business ownership and mergers and acquisitions, business assessment and client liaison techniques. The unit may form part of the licensing requirements for persons engaged in business broking in those States and Territories where business broking is a regulated activity. |
Application of the Unit
Application of the unit |
This unit of competency supports the work of those involved in the merging or acquisition of businesses on behalf of a client. |
Licensing/Regulatory Information
Refer to Unit Descriptor
Pre-Requisites
Prerequisite units |
Nil |
Employability Skills Information
Employability skills |
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
||||
1 Obtain , interpret and confirm instructions . |
1.1 Client requirements and instructions are discussed and clarified according to legislative , industry and agency requirements . 1.2 Assignment plan that best meets client requirements is determined and implemented. |
||||
1.3 Fees are determined and negotiated with the client according to industry and agency requirements. 1.4 Advice is prepared and provided to other enlisted professionals involved in the merger or acquisition process. |
|||||
2 Assess suitability of business for merger or sale . |
2.1 Information on business is compiled and used to ensure that reliable data and advice are accessed. 2.2 Critical assessment of the ownership , structure and status of the business is conducted against statutory and merger or acquisition requirements. 2.3 Business potential and capacity are reviewed against financial and strategic marketability . 2.4 Synergistic opportunities are identified and incorporated in assessment. 2.5 Suitability for merger or acquisition of the business is researched and determined using industry-adopted assessment methods. 2.6 Research gathered from previous merger or acquisition assessments is used to ensure objectivity of assessment as to business suitability for sale or merger. 2.7 Assumptions are checked for reasonableness and recorded according to agency requirements . |
||||
3 Advise on options for merger or sale of business . |
3.1 Strengths and limitations of current business and proposals are evaluated and communicated to the client. 3.2 Client is provided with appropriate information and assisted to make an informed decision on merger or acquisition options. 3.3 Assessment and advice are provided within a timeframe that does not disadvantage the client's opportunity for maximum results. 3.4 Client is referred to appropriate enlisted professionals for financial and legal advice on options. |
||||
4 Complete assessment . |
4.1 Arrangements are put in place for all records and documentation relating to the merger or acquisition process to be prepared and checked. 4.2 Relevant parties are contacted and informed of the decision regarding business sale or merger. 4.3 Data and assessment findings are documented and stored correctly to inform future merger or acquisition assessments. 4.4 Feedback on the merger or acquisition process is encouraged and used to inform future assessments. |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
|
This section describes the essential skills and knowledge and their level, required for this unit. |
|
Required skills :
|
|
Required knowledge and understanding :
|
Evidence Guide
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:
|
Context of and specific resources for assessment |
Resource implications for assessment include:
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:
|
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. |
Range Statement
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: |
|
Enlisted professionals may include: |
|
Information may be compiled from: |
|
|
|
Critical assessment of the ownership , structure and status may include: |
|
Financial and strategic marketability may include: |
|
Synergistic opportunities : |
|
Research includes: |
|
Agency requirements may be outlined within: |
|
Proposals may be: |
|
Records and documentation may include: |
|
Feedback may include: |
|
Unit Sector(s)
Unit sector |
Property development, sales and management |
Competency field
Competency field |
Business broking |