Pros and Cons of Using an Inventory Service During Escrow

Should you use an Inventory Service when you are buying a business?  We’ll give you a breakdown of when it will be handy and when you might no get enough benefit for the cost.

Counting Inventory

Reasons Not to Use an Inventory Service:

#1.  When the amount and quantity of the inventory is small enough that the buyer and seller can count it all in a relatively small amount of time.

#2.  When you need to get to know the inventory on hand, then as a buyer, you will get hands on with while you are counting it.

#3.  When you need to review the obsolescence of the inventory.  If there are layers of dust on some sections of inventory, then both parties better be prepared to discount the inventory.

Reasons to Use an Inventory Service:

#1.  Efficiency.  Using your time for other productive activities.

#2.  Professionally itemized & counted inventory.  Though, an inventory service will not help settle the value of what you they have counted.

We have worked with a few inventory companies, and have found them to be useful in finishing the count faster.  This frees time for other productive time between the seller and buyer, which gives the seller an opportunity to offer more insight.  The more a buyer knows when they take possession of a seller’s business the better, this minimizes the hiccups for the buyer, and reduces the chance of business failure, which is good for the buyer, seller, the employees and the customers.  For more information about using an inventory service and finishing an escrow, please call (323) 213-9193 or email cs@justelementary.com