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What would be these businesses backup plans if Smyte went bankrupt instead being acquired?
by pkaye 8y ago
What would be these businesses backup plans if Smyte went bankrupt instead being acquired?
- shakna 8y agoPresumably you would get more than half an hour to migrate.
- JauntyHatAngle 8y agoA company going bankrupt usually doesn't give 30 minutes warning that they are shutting down services though. They give more warning than that.
- tinus_hn 8y agoYour supplier going bankrupt is a well known risk that you cover by checking its credit rating and by paying on or after delivery.
- sverhagen 8y agoThat's why often startups can't do business with big companies that hold to rules like that. Would Smyte's rating have cut it for people?
- fauigerzigerk 8y agoYour supplier getting acquired is also a well known risk that you cover by reading/negotiating the contract. The problem is, if all suppliers use the same contract clauses you may not have a choice.
- AznHisoka 8y agoHow do you check the credit rating of a startup? and how would their credit rating be affected if they pay all their bills but just reduce the number of bills gradually over time?
- PeterisP 8y agoOne way that's sometimes done is that you require them to submit an independent respectable audit of their financials, or in case of confidentiality issues, not submit the actual financials but a statement from a respectable auditor that they have verified the suppliers financials and their cashflow/"runway"/etc satisfies the criteria that you required.