6d • General discussion
A Buyer Found A Business With Messy Books
A buyer found a business with messy books.
His first reaction was to walk away.
That may have been premature.
Messy books can mean several things.
It can mean fraud.
It can mean tax games.
It can mean poor systems.
It can also mean an unsophisticated seller with a good business that has outgrown its back office.
The opportunity is in knowing the difference.
Messy books create risk.
Risk can create price adjustment.
Price adjustment can create opportunity.
But only if the buyer can reconstruct reality.
Bank statements.
Tax returns.
Merchant statements.
Payroll records.
Customer invoices.
Vendor bills.
A bad buyer sees messy books and either panics or ignores the problem.
A disciplined buyer says, “I can underwrite this only after rebuilding the numbers from primary source documents.”
That is where opportunity lives.
Not in trusting messy books.
In proving what they actually mean.
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A Buyer Found A Business With Messy Books
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