Inventory

A number of businesses base their business model on holding a high amount in inventory to be in a position to readily assist their clients. Thus part of the acquisition negotiations will factor in accurately calculating the inventory value at a particular cut-off date.

As part of their exit strategy businesses should regularly assess the amount of inventory they are holding, whether it is still relevant to their operations, and if it should be re-valued or entirely written off.

Keep in mind that a prospective acquirer is unlikely to want to purchase stock that they are not confident that they will be able to sell. Thus prior to placing your company on the market take the opportunity to undertake an inventory audit, re-value your inventory, and remove any irrelevant inventory.