Summary
Contents
Subject index
In this book, the authors, who have both bought and sold several businesses, reveal creative and low cost ways to do your own diligence in investigating entrepreneurial opportunities. The book covers all the basics, including market, products, insurance, facilities, assets, short and long-term liabilities and much more.
Valuation of Short-Term Assets
Valuation of Short-Term Assets
When Hendrix Niemann bought Automatic Door Specialists, he discovered that “there were a lot of bad receivables on the books. Close to half were more than 90 days old, and the majority of that dated from 1988,” nearly two years earlier (Niemann, 1990, p. 36).
Niemann met with the seller, Peter Klosky; Automatic Door Specialists' senior employee, Darvin Brothers, who was helping him in the negotiations; and his own accountant to assign value the company's inventory. “Peter Klosky couldn't do anything at this point about overripe receivables,” wrote Niemann, “but he was bound and determined to get every last cent out of this junk heap he called his shop.”
“There's usable stuff in there, Darvin,” Peter said.
“Peter, that's just old ...
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