As the old Latin saying goes: caveat emptor – “let the buyer beware”
In commercial life, this term translates as the buyer assuming all the risks and responsibilities that a business may fail to meet expectations, or have hidden problems that might not have been disclosed or readily apparent when doing your appraisal to purchase.
It is all very well to say “oh, well, I’ll rely on your representations and sue later if it transpires differently”. But in reality, this will likely be a long, costly and drawn-out exercise.
Wisdom comes from wider consideration of all the scenario’s – existing, apparent, potential, and disguised.
Perform your review and analysis, investigate all issues you might consider relevant. If you meet resistance to questions or encounter hesitation, or if information appears to have gaps and doesn’t reconcile or stand up to the “pub test”, hold-back.
Chances are, that if an investment opportunity appears to meet your criteria, you will have a better gut-feel for whether or not to proceed after carefully looking at all the information – not just what your heart wants it to be.
Asking the difficult questions, and investing in some input from ABS, will sift out the fact from the fiction and rationalise your decision-making process.
It is normally much easier to buy, than to sell.
If you don’t like a job, you can give 4 weeks notice. But if you don’t like a business, it can take many years of hardship to move on.