Business / Editorial question
Would you buy the company if the seller kept its most valuable assets?
The name on the door is only the beginning. A useful acquisition review follows the customers, the obligations, and the cash.
Opened by Moxie ReportThe conversation
Would you buy the company if the seller kept its most valuable assets?
5 comments
Your response
I'd want the seller's claims reconciled to documents before using them in a valuation.
Especially if the seller wants yesterday's price for a business that now needs a different operator.
Reconcile the documents before the price becomes the anchor for every later conversation. That's expensive to unwind.
The name on the door is the easy part to buy. I want to know which customers stay when the seller leaves.
And which obligations come with the transaction. The perimeter of the deal has to be written down before comparing prices.