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Roger
Roger, Attorney
Category: Legal
Satisfied Customers: 31025
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I recently sold my business. It is a service business that

Customer Question

I recently sold my business. It is a service business that customers typically pay monthly while a few prepay for multiple months at a time. I provided an itemization of outstanding contracts and prepaid revenue during the sales process and left over 13k in the business for these contracts. Since then it has become apparent that there were some errors, and I have paid an additional 2k as good faith. According to the business broker who handled the sale, my liability ended at the closing table. Is this true? I don't want to be accused of fraud or something, but I also can't keep paying.
Submitted: 1 month ago.
Category: Legal
Expert:  Roger replied 1 month ago.

Hi - my name is ***** ***** I'll be glad to assist.

As long as you acted in good faith and did not intentionally manipulate numbers or "cook the books", there should be no criminal liability. Also, if you're willing to make any discrepancy right by covering the expense/returning necessary funds, then you should not have any civil issues as well.

Customer: replied 1 month ago.
Where is the line though? What if some customer shows up months from now and claims they prepaid?Lastly, we had a couple of customers with lifetime contracts that I knew wouldn't be honored because the new owners were buying the assets instead of the actual llc. I moved those customers (with their agreement) into a promotional rate and applied what they had paid. It got them through the year. The contracts were listed at the new rate and were discussed. However, I never told them that they were previously lifetime customers. Is there any potential issue there?
Customer: replied 1 month ago.
Did you receive the follow-up? I'm not sure it went through.
Expert:  Roger replied 1 month ago.
If you turned over the books and the buyer inspected them prior to buying the business, they've accepted whatever the books provide. However, if the books are incomplete or inaccurate, you should attempt to corrrct the issues and make the buyer whole in order to fend off any claims or lawsuits.