Stop signs when buying a company

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Bobr Administrator Level 35
  • 2023-12-22
There are certain signs that show that a company is going through hard times, here are a few of them.

Deterioration in financial performance

If a company's profits are declining and expenses are rising, this is a clear sign that the company is in trouble. In such a situation, it is better to analyze the reasons for the deterioration in financial performance and reconsider the purchase.

Deterioration in product quality

If you notice that the quality of products has begun to deteriorate, this may be a sign that the company has poor personnel management, as well as problems with equipment.

Employee layoffs

If employees begin to quit en masse, most often this indicates terrible working conditions or a lack of interests within the company’s employees; a recent example is the dismissal of Sam Altman.

Negative customer reviews

This is also a clear sign that the company may be lying about its satisfied customers, but it may also indicate private attacks by spammer bots.

Changes in legislation

If there are changes in the law that may affect the business, it is better to ask for an updated copy of all documents and metrics, because the policy significantly affects the business.
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