As part of the valuation process, a buyer should scrutinise the seller's balance sheet to see whether asset book values are realistic.

Question

Quizplus · Accepted Answer

It is important for a buyer to scrutinize the seller's balance sheet to ensure that the asset book values are realistic, as this can affect the overall valuation and price paid for the business. If book values are inflated, it could lead to potential future write-downs or impairments that could negatively impact the buyer's investment.

As Part of the Valuation Process, a Buyer Should Scrutinise