Did Thought Convergence fall for a classic sales line?
May 13th, 2009Ive been reading over Andrew Allemann’s postings (DomainNameWire.com) about the Thought Convergence lawsuit against Jay Westerdal. Frankly it amuses me to see some of the claims that Thought Convergence makes. Below are two I want to focus on very briefly.
- “TCI says that Westerdal told it he had a $60M cash offer on the table”
- “Westerdal said the second and third installment of the purchase price for NI would “easily paid by the net profits””
The first claims that Thought Convergence was told an offer of 60 million was on the table, but apparently Jay was willing to sell it to them for 16 million? I cant help but laugh at this. What owner of a domain name hasnt said they’ve recieved higher offers in the past (even if that wasnt the case). How can you really believe that at his word to begin with? If your going to spend 16 million, I would hope you would use due dilligence to actually research the company your buying.
The second states that Jay told them that they would be able to pay the final installments off with the net profit that the acquired company would generate. Lets be honest, if you bought this one you didnt even look at the books, did you? What kind of person would sell a business that generates that kind of profit at the price you were getting it for?
Frankly, it sounds like Thought Convergence didnt bother looking at the company before they bought and got sold on it by a clever Salesman. Thats why when you go to a Used Car lot you always kick the tires before you commit to buying.
Justin
