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Mike Ashley
Link: http://www.dothesums.co.uk/blog
It is reported that Mike Ashley, the owner of relegated Newcastle United has expressed regret that he failed to do due diligence – the process of thoroughly checking Newcastle’s finances – before buying the club.
It is common practice in the business world to check on business deals by carrying out 'due diligence' on the purchase of any major asset.
Why do buyers not do due diligence when they choose a house?
Well some do; but only in part. They carry out the legal and physical checks, but fail to do the most important part, the financial check.
In a radically changed economic environment, it is essential to assess the desirability, value and potential of a property, so that buyers can avoid losing capital, perhaps even avoiding negative equity.
Mike Ashley probably wishes he could wind the clock back.
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