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Just Elementary, Inc. » Entries tagged with "Inventory"

Selling a Business, Is the Inventory a Deal Killer

June 24th, 2011 | Comments Off on Selling a Business, Is the Inventory a Deal Killer

Selling a Business, Is the Inventory a Deal Killer

When selling a business that involves a significant amount of inventory, there are steps that can be taken to make the business easier to sell. What are some of the common issues that inventory creates that can be impediments to successfully closing a sale to a buyer? Too much inventory Too much inventory can cause the asset value of the business to exceed the market value of the … Read entire article »

Filed under: Business Tips

Discounting Inventory & Deferring Payments During Escrow

March 7th, 2011 | Comments Off on Discounting Inventory & Deferring Payments During Escrow

Discounting Inventory & Deferring Payments During Escrow

In the middle of a transaction of selling your business, the topic comes up of counting the Inventory.  You say, of course, to ‘do it’ so an accurate sales price can be determined for the business plus the inventory at your cost.  You also let the buyer know that the inventory amount is ($500,000 for example), and it is all in good saleable condition.  The buyer asks you how often you turn the inventory and … Read entire article »

Filed under: Business Valuation, Due Diligence, Negotiation

Business Valuation Too High Using Wrong Methodologies

February 15th, 2011 | Comments Off on Business Valuation Too High Using Wrong Methodologies

Business Valuation Too High Using Wrong Methodologies

Many a client we have come across has a business valuation in their hands that is much higher than reality dictates.  The reason for this is multi-faceted. Let’s start with unscrupulous M&A sounding firms who claim to be able to sell businesses for outrageous multiples based on future earnings.  Often, these types of firms put on slick presentations and claim to have sold many businesses for great premiums. … Read entire article »

Filed under: Business Valuation, Featured