Elements and Performance Criteria

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.

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.