Letter Of Comfort

Finance a la shmoop what is a comfort letter? S....See the smooth curves there is [An S letter appears]

that comforting okay okay comfort letter is a letter

this kind of letter written by an expert usually someone like an auditor or a tax [Expert appears with comfort letter]

attorney in one form or another who has done deep due diligence into a company

looked at myriad details and data and volume counts of plastic cubes in their

inventory and then they've looked at their distribution contracts

you know with truckers and retail stores and drone deliverers and then they've [Drone flying in the air]

looked at their bank accounts both the onshore ones and the offshore ones that

you know they don't really like to talk about and then about 87 ish other things

that all those people look at and then they write a letter like an actual

letter which is usually given to the Board of Directors or an acquirer or

the investigating party whoever that is and that letter states that what the

company says it has or does is in fact what it has or does which is a good [Man discussing comfort letters]

thing to know so this letter well it just gives comfort to everyone

the only challenge can be you know trying not to become too comfortable [Man working near a waterfall]