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Originally Posted by novanutcase
Most companies that understand how business is SUPPOSED to be will NEVER introduce any change in ownership until it is LEGALLY transfered. Sounds like our boy jumped the gun. I don't have a dog in this fight but it sounds to me that maybe Jon "overstated" some of the virtues of the company and when Travis got in there and was able to really see what was going on he backed out.
My question is why would you even get close to closing a deal and announcing that you are the new owner without having audited the books in a way that would confirm moving on with closing said deal? Obviously the ownership change was done prematurely although there are certain disturbing timeline issues that don't bode well for Jon.
John
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Not trying to defend this fiasco but this just isn't true in the real world. In 1998, Martin Marietta was in the process of buying a division of Northrop Grumman. Obviously both huge companies. All the announcements had been publicly made, even the name was changed on my building, and the whole deal fell through. Big companies occasionally get it wrong, and the small businesses that make up the vendors we deal with are even more susceptible. Doing due diligence on a small business is always somewhat of a crapshoot, because many non-public companies do not have accountants on staff, nor truly audited books. A previous owner could have been hiding things that would not be found until a new owner delved into the actual workings of the business.