From Portland Business Brokers Group.
Trace a customer order through the business
Start with purchasing terms, inventory availability and delivery. A buyer wants to know why customers choose you and what it costs to keep that service reliable.
Distinguish gross sales from margin after freight, rebates and returns. Show how unusual supplier incentives affected the periods being compared.
Build an inventory bridge to closing
- Identify stock owned, consigned or pledged to a lender.
- Separate slow stock from normal replenishment inventory.
- Explain counting methods and inventory adjustments.
- Reconcile customer deposits, receivables and supplier balances.
Agree how working capital will be measured before accepting a price. A later adjustment can change proceeds even when the headline offer stays the same.
Test the relationship risk
A large account may buy because of your service team, your location or you personally. Show which relationship is actually being transferred.
Review supplier concentration too. A buyer will ask what happens if a major product line is withdrawn or its terms change after the sale.
Keep the warehouse handoff practical
Document order systems, delivery responsibilities and purchasing authority. Include any landlord consent and equipment obligations in the preparation work.