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Buying a business

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John M Webb

Junior Member
What is the name of your state? Illinois

Hi everybody.

If you are looking to buy the assets of a company including all their innventory and you agree a price, is the selling company allowed to sell off a considerable ammount of those assets betwen when the price was agreed and the final completion after due dilligance . In this case in the 30 days between agreeing the price and final completion of the purchase approx one third of the innventory was sold off at unsustainably low prices.
 


CraigFL

Member
When I bought my business, I bought the assets and the inventory based on an agreed price. At the time of the sale closing(actually 24 hrs prior), I verified that the inventory and assets were there or I would have deducted the missing items, although asset sales would bother me greatly. It would be unreasonable to expect the company to not sell inventory during the 30 day period and equally concerning if they are purchasing replacement items because of the question of who is actually responsible for payment. You would need to carefully monitor A/P activities especially for items in transit.
 

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