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You often don't get to "inspect the goods" at a user by user level. Put yourself in the shoes of a non-fraud company where the asset is your customer set. Do y
by danielmarkbruce 1y ago
You often don't get to "inspect the goods" at a user by user level.
Put yourself in the shoes of a non-fraud company where the asset is your customer set. Do you let JPM go through line by line confirming each one? No, you do not. You give redacted data or aggregate data.
In eyeballs/non-paying user businesses, this is just going to happen sometimes. In practice you don't get to do the diligence you want to do sometimes.
- TuringNYC 1y agoDoesn’t the Data Room solve this? https://carta.com/learn/startups/equity-management/data-room/ https://carta.com/learn/startups/equity-management/data-room...
- danielmarkbruce 1y agoNo. There is no magic in buying/selling businesses, just put yourself in the shoes of the seller. JPM promise not to ever use that customer list you put in the data room should the deal fall over? How would you ever know if they did? You wouldn't trust a potential buyer and in practice companies do not. They'll put information in the data room, but not customer level details unless anonymized at which point you are back where you started as far as validating users. So you are left with various legal/contractual solutions - things like "representations and warranties" (ask chatgpt about them), escrow agreements etc etc. And when it all goes to hell you go to court with your contract and attempt to get the money back. Such is life.