Is the inventory value added or included in the price of a business? How to buy a business

Now many nails in that hardware store?

What do we do about inventory?

I received a great question from Anton about the value of the inventory when you buy a business…

Do we add it to the cash flow multiplier or is it included in that number?

Great question because if you get this wrong the number used for the transaction could be WAAAAAY off!!

Want a hint?… it depends. Of course!

Grab your abacus and come on over to help me count through these racks of dresses: https://youtu.be/X6L_dS2gRYs

Learn how to buy an already-successful and profitable business even in the covid-recession of 2020: https://www.BusinessBuyerAdvantage.com **Now with a new section on buying distressed businesses.

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David C Barnett author, speaker, consultant and coach. I help you buy, sell & manage your business. Find out more at www.DavidCBarnett.com