Hello fellow Anandtechers, been a while since I've posted on here! I'm wondering if anyone here has knowledge in business acquisitions or could tell me if I'd have a reasonable case in my situation. If you don't want to post publicly to respond, feel free to PM me.
I've recently bought a small cleaning business through a broker representing the seller. There was a client list that I was purchasing as the main part of the deal and each client had different gross amounts. The biggest client represented roughly a quarter (possibly a bit more) of the business gross income. The seller never specified the exact amount of this particular account, only a range of income. Almost immediately after signing the papers and getting the check over to the seller, I was told that the account had been lost. This came up after I had mentioned something, of which I can't remember what that was, but the seller informed me that she'd lost that account. Now I probably should have at that exact moment said something, however the seller did add some small accounts which I'd thought would have offset that amount. That's not been the case and the small accounts are on the high side a 5th of the income the main account which was lost. I went back to the broker and she informed me she had known this about a week prior to closing but nobody told me. The form I signed seems to get the broker in the clear of any legalities so as far as I can tell the broker is out of the question to pursue. This would leave me with pursuing the buyer for legal action.
Would this count as fraud? If so, I can't pursue anything yet because the seller is still getting some of my checks to her address due to the change of address forms and clients updating the information on their end. I'd be looking at another month or so before making a case if I have one because I don't want hostility during the transition period. Any input is greatly appreciated.
I've recently bought a small cleaning business through a broker representing the seller. There was a client list that I was purchasing as the main part of the deal and each client had different gross amounts. The biggest client represented roughly a quarter (possibly a bit more) of the business gross income. The seller never specified the exact amount of this particular account, only a range of income. Almost immediately after signing the papers and getting the check over to the seller, I was told that the account had been lost. This came up after I had mentioned something, of which I can't remember what that was, but the seller informed me that she'd lost that account. Now I probably should have at that exact moment said something, however the seller did add some small accounts which I'd thought would have offset that amount. That's not been the case and the small accounts are on the high side a 5th of the income the main account which was lost. I went back to the broker and she informed me she had known this about a week prior to closing but nobody told me. The form I signed seems to get the broker in the clear of any legalities so as far as I can tell the broker is out of the question to pursue. This would leave me with pursuing the buyer for legal action.
Would this count as fraud? If so, I can't pursue anything yet because the seller is still getting some of my checks to her address due to the change of address forms and clients updating the information on their end. I'd be looking at another month or so before making a case if I have one because I don't want hostility during the transition period. Any input is greatly appreciated.