Hello all! does anyone have experience with mfg. acquisitions?

by an investor from Georgia Institute of Technology

1 month ago

looking for guidance dealing with inventory as a part of the acquisition and how to navigate purchase price?

0 likes
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10 comments

searcher from University of Pennsylvania - The Wharton School

Hi Neil - I currently own a manufacturer and would be happy to help share some of my experience. Building on what you've heard above, I would advise you to review the inventory by product/part no. and compare it to sales and the age of the inventory. I would caution you not to consider aged or slow-moving/no-movement inventory as part of your working capital. You should negotiate with the seller as it some or all of it should be written off. It's worth reviewing your target's inventory control practices - how much inventory do they write off every year? How do they control the inventory? You'll want to make sure you are able to make adjustments to your purchase price if the reported inventory is not what is actually there. Feel free to reach out to me at: --@----.com

4 weeks ago | like reply | 0 likes

intermediary from The University of Chicago - Booth School of Business

I get at least 1 call/mo. from searchers on inventory issue. I teach the subject. Happy to help.

4 weeks ago | like reply | 0 likes

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