Inventory Value Misrepresentations Discovered After Purchase
by a searcher from Southern Methodist University - Edwin L. Cox School of Business in Denver, CO, USA
What recourse does a buyer of a business have (after closing) upon discovery that the seller artificially inflated the actual costs of inventory to increase the purchase price at time of sale? Misrepresentations were clearly covered and there were plenty of indemnification protections in the contract, including damages to be and we outlined the timeline to make a claim against a misrepresentation. I am more interested in what steps the buyer should take upon discovery. I have begun to collect original invoices from vendors quietly and am starting to track. Any advice?