Client Looking to Buy Another Company
Target Company's Accounting Records were Weak and Inaccurate
Smith Schafer Approach
We discussed the problems with the attorney who was drafting the purchase documents on behalf of our client and it was decided to ask for expanded seller warranties regarding the financial records including the accuracy of the balance sheet as of the date of purchase. Seller financed approximately $150,000 of the sale price and we requested that any breach of warrantee have the right of offset.