For New Sellers: Quality of Earnings in M&A Explained in 30 Minutes
M&A Talk: #1 Podcast on Selling a Business
00:00
How to Be GAP Compliant With GAP
The purchase agreements are what I've seen pretty much entirely predicated that the work capital is GAP compliant. And when you take on that debt, you typically are also taking on an audit down the line and the audits are going to be GAP compliant as well. Is there an alternative to GAP? A lower level or it's GAP or no GAP? There's some wiggle room, but I think as long as you have documentation or memos to support how you want to account for something, I think that's good enough for auditors. It makes a little bit more sense just to be cash basis right now.
Transcript
Play full episode
