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Is there anything someone can do if the numbers are wrong after closing?

A friend of mine bought a business a month ago and the numbers for the business is way off what was indicated by the seller. Is there anything my friend can do at this point? The seller is carrying a note and my friend is having problems paying it because the numbers are so off.

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Answers (3)
Harry & Sally Vaishnav
Angel Business Advisors
President
Oakland County, MI

David

Sorry to hear about the problem. As Rohit suggested you still have an opportunity to restructure the loan. I always advise people buying a business to do proper due diligence and look at the financial numbers from several angles to identify red flags and inconsistencies.

We at Angel Business Advisors provide Due Diligence service where we go through very detailed analysis of financials. Obviously, it's late in this case; but you can keep us in mind for the future and suggest to other colleagues and friends. You can find more information about our service at - http://www.angelbusinessadvisors.com/financial-analysis.htm
it also has a sample analysis giving you an idea of what you can expect from the service.

Jun 2, 2010
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Biz2Credit LLC
New York County, NY

David,
Is the nos. wrong in the tax return or only in the interim financial. Did your friends get audited nos. from the business or was it just made on the excel sheet. He can always tell the seller about the wrong nos and restructuring seller notes. We do a lot of deals with seller notes at www.biz2credit.com

Jun 2, 2010
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

Did you have legal representation when you closed the transaction? Are we talking about enough money to go after considering the legal fees. Or is it an expensive lesson your friend will have to absorb and work harder to make the numbers work for him. Good luck, Jon at Edgemaster Mobile Sharpening

Jun 2, 2010

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