when people sell their business , do they have to disclose the right information to potential buyers?

Question

in terms of cash flow and stuff like that?

Answer 1

I'm not a lawyer, but I'd say this:

If you want to win in business lead with integrity. That means playing straight and disclosing the whole truth. When you don't it leads to bad outcomes in my experience.

Second, anything you hide or mislead a buyer on would create grounds for a lawsuit post sale. Usually, people don't want to be involved in a suit so I'd say that unless your disclosures led to significant damages you're unlikely to be sued.

Lastly, I would think about Karma. You get from life what you put into it.

Answer 2

yes..can cause a lawsuit later.
you sign a letter stating that you have disclose all information to the best of your knowledge.

Answer 3

If they don't, it is called fraud.