Looking at a deal now where the seller is proposing an asset sale excluding the receivables. Roughly speaking it's a $2M deal plus $750 in inventory and $1.5M in AR. What are your thoughts on a deal this size without AR?

Without AR I worry about being able to fund the business on day 1 and getting a large enough LOC.

With AR, I would clearly need the ability to hold the seller accountable for obsolete receivables, given the amount. (thinking either escrow holdback or larger seller note)