5. Offer to purchase REnew's operations REnew has recently been approached by SolBat with an interest in purchasing REnew's operations. SolBat is a well-known South African manufacturer of solar batteries that has been operating in the PVRSS sector for more than 10 years. SolBat has recently made the decision to change strategic direction and become a PVRSS supplier. SolBat specifically approached REnew because: - REnew has a great reputation for quality, - REnew performs continuous research into enhancing the absorption ability of polysilicon, and - REnew's PV solar panels will then only be used in SolBat's PVRSSs, which they believe will give them a competitive edge over other PVRSS suppliers. This was a surprise to Mr Dimm. Given the growth in the PVRSS sector, and the recently announced solar panel government tax incentive on PV solar panels, Mr Dimm is of the opinion that selling REnew's business is not an option. According to Mr Dimm "there is so much that REnew can still achieve and business opportunities that the company can explore! Such as becoming a PVRSS supplier or offering maintenance contracts to our customers. " Two of REnew's executive directors agree with Mr Dimm, who is also a director, while the other two executive directors feel that this is something they should seriously consider. The five executive directors have however agreed that before a decision can be taken: - REnew's recent performance should be evaluated, and - The company should be independently valued. Three independent valuation service providers (valuers) have been asked to provide a quote to estimate the fair market value of REnew's ordinary share capital (equity). In the interim, Mr Dimm has compiled the actual and projected financial information in Addendum A to assist the independent valuer that REnew will choose to perfor the valuation. Mr Dimm intends suggesting to the chosen independent valuer that the valuat should be based on a discounted cash flow analysis of REnew's current operation. but he is unsure what other information the valuer may require. To help REnew's directors when deciding whether to sell REnew to SolBat and for how much: - Identify and explain the key factors that should be considered, and - Outline further information that would be required (that is not in the scenario)