World434_AH_04

We had an intern prepare a list of what needed to be done after closing and they made a mess of it.

We've already established the holding company, reviewed insurance policies, and completed a compliance & safety audit. Several of the other items noted need to be completed pre-closing. Identify each such item from the list - and do not include optional items, the local leads will work on these once closing is completed, we just need mission critical items identified.

Reply here with your findin...

The following items from the pre-closing check-list should be completed prior to closing:
- "upgrade or purchase robust property-insurance, general liability, fire & hazard insurance, business interruption, environmental liability coverage, hazardous-materials coverage (if feasible), third-party liability”: although upgrades to insurance are not required prior to closing, if there is a gap that needs to be covered through purchase of insurance, this needs to be done prior to closing. If there was a gap in insurance and a loss occurred, this would be considered negligence on the part of the acquirer.
- "define board structure”: without a board in place, the local companies will not be able to operate post closing.
- "appoint local management leads for HK and SG”: without local management in place, it will be impossible to run the purchased assets. The prompt also mentions that the local leads will handle everything not mission critical, which reinforces the need to have this staff in place prior to closing.
- "maintain a contingency reserve / CapEx fund for ongoing expected maintenance, compliance updates, retrofits, permit renewals, safety upgrades, unforeseen regulatory changes”: these reserves must be assessed and funded prior to closing, as otherwise, necessary operations/work will not be possible to complete. If there were a gap that resulted in a halt or issue with operations, this would be considered negligence on the part of the acquirer.