No. It is one component to review alongside the resources needed to run the actual company. A rights payment can leave the business unable to fund inventory, fulfill orders or support customers. Distinguish what has been paid or committed from cash merely available and obtain case-specific review of qualifying capital. The figure that misleads is the one that was easiest to obtain. A rights payment gets quoted, invoiced and paid, so it feels like the investment, while the working capital that keeps the business alive is estimated, unbilled and correspondingly easy to leave out of the total.
Test the first complete sales cycle
Follow one order through supplier payment, shipping, storage, sale, collection and potential return. Identify when the company must pay before receiving revenue. That working-capital gap may be more important than the headline license fee.
Keep professional immigration expenses and household living reserves separately visible so neither disguises an underfunded operating plan. Build the budget from the operating cycle rather than from the acquisition. Count deposits to suppliers, freight and duty, storage, the systems that take an order, insurance, and the months of overhead preceding the first receipts.
Substantiality is weighed against the cost of this particular enterprise, so a business needing inventory and service capacity is measured against that need and not against a figure borrowed from an unrelated case. Funds still sitting in a personal account and revocable at will are generally weaker evidence than funds irrevocably committed and genuinely at risk.