What is the primary concern regarding the venture in San Gabriel?
Political instability
Low inventory levels
Strong regional competitor
High acquisition cost
What issue is highlighted about the current owner's inventory?
It is well-managed and balanced
It is extremely high compared to cash and accounts receivable
It is mostly outdated and unsellable
It is too low to meet demand
What recent development adds to the risk of the acquisition?
An increase in cash and accounts receivable
A decrease in political instability
A new plant built by a major competitor nearby
A reduction in inventory levels
Why does the speaker believe the acquisition would not be cost effective?
Due to high inventory levels
Due to political stability
Due to the presence of a strong regional competitor
Due to low acquisition costs
What is the overall assessment of the venture by the speaker?
Highly recommended
Risky and not cost effective
Neutral with potential for success
Low risk and profitable
What are the concerns raised about the venture in San Gabriel?
Political instability affecting supply and distribution
High inventory levels compared to cash and accounts receivable
Presence of a major competitor nearby
Low acquisition cost
Which factors contribute to the decision not to proceed with the acquisition?
Political instability
Supply chain risks
High inventory levels
Low viability of the venture
What are the issues with the current owner's inventory?
Inventory levels are too low
Inventory levels are astronomical compared to cash and accounts receivable
The owner is having trouble selling the inventory
Inventory is outdated
What is the impact of the competitor's new plant on the acquisition decision?
It increases the viability of the venture
It reduces the cost effectiveness of the acquisition
It poses a significant regional competition
It has no impact on the decision
What are the risks associated with the political instability in San Gabriel?
Problems with supply and distribution channels
Increased acquisition cost
Decreased inventory levels
Reduced competition
Political instability in San Gabriel is not a concern for supply and distribution channels.
The current owner's inventory level is low compared to cash and accounts receivable.
One of our major competitors has built a similar plant forty kilometers to the east.
The acquisition is considered cost effective despite the risks and regional competition.
Please sort the following options in order of their impact on the viability of the acquisition, from most to least significant.
Political instability in San Gabriel
High inventory levels compared to cash and accounts receivable
Presence of a major competitor nearby
Supply and distribution channel risks